Sportscraft hit with Australian Competition and Consumer Commission penalties over refunds policy

Sports retailer APG & Co Pty Ltd, trading as Sportscraft (Sportscraft), has paid penalties totalling $21,600 after being issued with two infringement notices by the Australian Competition and Consumer Commission (ACCC) following an investigation into the recognition of consumer guarantee rights in the clothing retail industry.

The ACCC issued the infringement notices because it had reasonable grounds to believe that Sportcraft had made false or misleading representations about consumer guarantees to its customers, in breach of the Australian Consumer Law (ACL).

From at least 29th January 2016, Sportscraft stated on tax invoice receipts that consumers would not be entitled to return or exchange faulty goods purchased from a clearance store.

From at least 29th March 2016, Sportscraft also stated on its website that it would not refund, exchange or credit note the item more than 21 days after purchase.

Under the ACL, consumers have rights to repairs, replacements or refunds if the goods and services they purchase are not of acceptable quality, do not match descriptions made by the seller or are not fit for their specified purpose.

ACCC Commissioner Sarah Court said in a statement Australia’s consumer laws provide guarantees to consumers for all their purchases and these guarantees cannot be altered by a business’s terms and conditions.

Court stated “consumer guarantee rights apply for all purchases a consumer makes, and these rights cannot be removed or reduced by a business’s terms and conditions.

“Clothing retailers cannot exclude or refuse a consumer’s right to a remedy simply because the faulty goods are bought at a discount clearance store.

"This is a timely reminder for all retail stores, particularly for clothing retailers, to review their refund or returns policies to ensure that they do not contravene the ACL.”

Court added “consumer guarantees remain a priority area for the ACCC.  It is concerning that we’ve seen a number of similar complaints in the fashion industry of late,” Ms Court said.

“The ACCC is continuing investigations regarding at least one other clothing retailer, and expects further action in this area.”

Sportscraft has since amended its refund and returns policy and the payment of an infringement notice issued by the ACCC is not considered an admission that a company has contravened the Australian Consumer Law.

The payment of an infringement notice penalty is not an admission of a contravention of the ACL. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

For further information about consumer guarantees go to www.accc.gov.au/consumers/consumer-rights-guarantees

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