ACCC wins against Deals Direct

The Australian Competition and Consumer Commission received court-enforceable undertakings from Auction Alliance Pty Ltd which was trading as Deals Direct to cease providing customers with misleading and false information.

It seems that the company had been providing customers with the wrong information on warranties and rights, which makes the company alleged to have breached the Trade Practices Act 1974.

Besides, the regulatory body said that in certain cases, if a product were to be returned, the customer would have to bear the transport or postage costs. Also, there were even products where customers would have to deal with the vendor and refunds would only be made available if replacement products could not be found.

On the contrary, the Act makes it possible for customers to demand for refunds for defective products within a reasonable period of time, depending on the quality and cost of the product.

Graeme Samuel, ACCC chairman stated that it was a win for online consumers and a stern warning to retailers that sales conditions had to be just the same across any platform.

Samuel stressed that online retailers have to recognise that they are subjected to the same laws as shop front retailers and that the ACCC is reviewing sites and will be considering taking action if remedial work is not quickly undertaken.