One of Australia's leading fashion houses, Cue Designs Pty Ltd, will remove signs in its stores which the Australian Competition and Consumer Commission has alleged were likely to mislead consumers as to their right to obtain a refund.
Cue, as part of its business activities, retails women's clothing through 52 Cue operated retail stores and a further 28 stores are operated by franchisees. Garments are also supplied on a wholesale basis to 120 retail outlets in Australia and to 20 retail outlets in New Zealand.
Following an investigation by the ACCC, Cue was informed that the Returns Policy sign displayed in its retail stores, was likely to mislead consumers as to their rights in respect to the statutory warranties provided under the Trade Practices Act 1974. Further, there were instances where employees of the company had made statements that implied it would not offer a refund where a garment was faulty. Such conduct is contrary to the Company's longstanding documented policy which states refunds are to be given 'on the spot' where garments are faulty.
Acting ACCC Chairman, Mr Allan Asher, said today that under the Act consumers are entitled to a refund from the retailer if the goods are of unmerchantable quality, are not fit for their purpose or fail to match a description or sample.
"Retailers should note that any attempt to mislead consumers as to their rights would place them at risk of breaching the consumer protection provisions of the Act," he said. "Cue reacted swiftly to the ACCC's concerns and immediately withdrew the in store signs and instituted a number of internal initiatives to improve its own staff's awareness of the statutory rights provided under the Act."
Cue has provided the ACCC with legally-enforceable undertakings that the company would:
- withdraw the 'Return Policy' signage from all its stores;
- issue a Returns and Refunds Policy and a Do's and Don'ts to its staff; and
- institute internal training and compliance programs.
Further information Ms Lin Enright, Director, Public Relations, (06) 264 2808 (w) or (018) 632 526