Reckon Ltd, a leading developer of software to help consumers manage their personal finances, will offer free software upgrades to 1,750 consumers and refunds to 119 others after the Australian Competition and Consumer Commission investigated allegations of misleading or deceptive conduct.
Packaging on Quicken Personal Version 7 and 8, advertised a "[o]ne button update of your portfolio via the Internet". Earlier this year, Reckon advised Version 7 users that the Share Portfolio download service would not operate after 1 April 2001. Version 7 users could either upgrade to Version 8, at a cost of $109.95, or pay a subscription fee of $49.95 for access until the end of the year.
The ACCC reached the view that Reckon engaged in misleading or deceptive conduct because its advertising implied indefinite access to the Share Portfolio download service free of charge. In fact, Version 7 users could only access the service after 1 April 2001 for an additional fee and lost access after 31 December 2001.
After talks with Reckon it was decided that Version 7 users who had subscribed to the Share Portfolio download service until 31 December 2001 would receive a full refund. Those who chose to upgrade to Version 8 rather than pay the subscription will be offered a free upgrade to Reckon's soon-to-be-released Personal Plus Version 2002.
"The ACCC negotiated the outcome after receiving a number of complaints from concerned users of Quicken Version 7", Acting ACCC Chairman, Mr Rod Shogren, said today.
"This is a good outcome for Quicken users. They now have access to a new version and knowledge of the limitations on its use.
"Businesses which advertise specific benefits without making it clear that those benefits are limited may breach the Trade Practices Act. All software developers must be aware of the effect of their advertising. Software companies must ensure that consumers are fully aware of any limitations and conditions attached to advertised product features at the time of purchase".
Consumers who suspect traders of engaging in misleading or deceptive conduct should call the ACCC's Information Centre on 1300 302 502.