JB Hi-Fi’s The Good Guys in court over ‘misleading’ promotions
JB Hi-Fi owned retailer The Good Guys is in hot water with the competition regulator for allegedly making false or misleading promotions.
The Australian Competition and Consumer Commission claims The Good Guys Discount Warehouses ran 116 promotions between July 2019 and August 2023 in which it offered customers a store credit or StoreCash if they spent a certain amount of money on qualifying products online and in-store.
The ACCC alleges the retailer represented the only requirement to receive the store credit was to make a qualifying purchase when that was not the case because consumers were also required to opt in to receive marketing communications in order to receive the promotion.
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By continuing you agree to our Terms and Privacy Policy.The competition regulator on Thursday said this was in breach of Australian consumer law and has instituted proceedings against The Good Guys in the Federal Court.
“We are concerned that as a result of the alleged conduct, consumers may have purchased products from The Good Guys which they might not have done otherwise,” ACCC chair Gina Cass-Gottlieb said.
“Businesses should be on notice that promotional conditions must be prominently disclosed to consumers, rather than buried in hard-to-find locations, or they risk enforcement action under the Australian consumer law.”
The ACCC is also alleging that The Good Guys represented store credit or StoreCash would not expire or would expire after a reasonable period, but for the majority of promotions it expired within seven to 10 days.
In a brief statement to the Australian Securities Exchange on Thursday, JB Hi-Fi confirmed the ACCC had instituted proceedings against The Good Guys.
“The Good Guys takes its compliance with the law very seriously and has a comprehensive compliance program in place,” it said.
“The Good Guys has always sought to provide value and benefits to its customers and has worked co-operatively with the ACCC throughout its investigation.”
The ACCC is seeking consumer redress, penalties, declarations, compliance and publication orders, as well as costs.
JB Hi-Fi shares closed up 1.2 per cent to $65.15.
