False, misleading and deceptive conduct by MSY Technology, MSY Group and MSY NSW

Following legal action by the Australian Competition and Consumer Commission (ACCC), the Federal Court of Australia declared that MSY Technology Pty Ltd (MSY Technology), MSY Group Pty Ltd (MSY Group) and M.S.Y. Technology (NSW) Pty Ltd (MSY NSW) (together MSY) engaged in conduct that contravened the Australian Consumer Law (ACL).

The Court found that:

·         MSY Technology and MSY Group made false, misleading and deceptive representations about MSY’s terms and conditions on its website; and

·         MSY NSW and MSY Technology made false, misleading and deceptive representations instore and by email communications to certain consumers who purchased faulty computer products from MSY,

which representations were contrary to the consumer guarantee rights provided in the ACL.

MSY’s false and misleading representations for faulty computer products included statements that:

·         consumers had to return the good to MSY within 7 days of receiving it in order to obtain an ACL remedy;

·         MSY had the discretion to determine the ACL remedy available to the consumer on a case-by-case basis;

·         consumers may incur an administrative fee if the product was not under a manufacturer’s warranty; and

·         the consumer would have to approach the manufacturer (not MSY) for an ACL remedy.

As part of its orders, the Court has required MSY to:

·         pay pecuniary penalties in the amount of $750,000 and the ACCC’s costs of the proceeding;

·         not publish or cause to be published on any website it operates, and not make to consumers instore, any representation that consumers’ rights or remedies are in any way limited, restricted or varied from those conferred on consumers under the ACL;

·         implement a consumer law compliance program which includes staff training and a complaints handling system; and

·         publish a phone number on MSY’s website that consumers can use to raise consumer guarantee issues with a senior MSY employee.

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