Clothing retailer, Westco Jeans (Aust) Pty Ltd has consented to orders restraining it from making misleading representations to consumers about refund rights under the provisions of the Trade Practices Act.
The orders follow Federal Court proceedings begun in December 1997 by the Australian Competition and Consumer Commission against Westco alleging it had misrepresented the statutory rights of consumers to obtain cash refunds by signs at certain stores and by oral advice of its staff.
At the directions hearing on Friday in the matter before Justice North, Westco also consented to orders requiring it to:-
- prominently place a sign in every one of its stores which retails goods to the public advising consumers of the circumstances when a cash refund will be provided;
- print a pamphlet containing detailed information about Westcos policy regarding returns of goods purchased by consumers and the specific instances when a consumer will be given a cash refund.
- The pamphlet will be available to consumers who visit any Westco store in the near future; and
- implement a comprehensive two year trade practices corporate compliance program for Westcos management and staff.
I appreciate retailers have genuine concerns in relation to consumers who make false or otherwise improper claims for a refund of their purchase, Acting ACCC Chairman, Mr Allan Asher, said today. But this concern cannot be allowed to take precedence over the statutory obligations upon retailers to afford consumers their right to a full cash refund where the goods are faulty, are not fit for the purpose made known or which are wrongly described.
The consumers right to a refund is an extremely important one and the Act prohibits retailers from improperly limiting or excluding this and other statutory rights. I trust that an outcome of this proceeding will be a forceful reminder to other retailers of their obligations to consumers in this area. I would also hope that consumers become a little better informed of their rights as a result.
The ACCC acknowledges the cooperation and assistance received in respect of this matter from the following State and Territory consumer protection bodies: Victorian Office of Fair Trading and Business Affairs, the New South Wales Department of Fair Trading, the Office of Consumer Affairs Queensland, the Office of Consumer and Business Affairs South Australia and the Australian Capital Territory Consumer Affairs Bureau.