Fashion retailer Sportscraft fined for misleading consumers

Friday 10 June 2016

Article by Roisin Kelly-Goldsmith

Australian brand Sportscraft has been fined by consumer watchdog, the ACCC for allegedly misleading consumers on their right to exchange or refund sale items.

Australian brand Sportscraft has been fined by consumer watchdog, the ACCC for allegedly misleading consumers on their right to exchange or refund sale items.

The clothing retailer paid $21,600 in penalties for allegedly breaching Australian Consumer Law (ACL) in the form of clothing receipts it gave to customers who purchased clothes on sale.

According to the ACCC, Sportscraft printed customer receipts in January this year that stated it would not return or exchange clearance products at all, even if they were faulty.

The retailer’s penalty comes as Australian brands are hosting their end of financial year sales, also known as stocktake sales.

“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,” said ACCC Commissioner Sarah Court.

Up until recently, Sportscraft online outlined it would not refund, exchange or give credit notes to customers after 21 days from the date of purchase. The brand has since amended its policy to comply with the ACL.

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“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," Court said.

“It is concerning that we’ve seen a number of similar complaints in the fashion industry of late.”

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