ACCC finds Nokia Care Centre warranty policy misleading

Fone Care, which operates Nokia Care Centres, has changed its refund and warranty policy across its 12 stores following an investigation by the Australian Competition and Consumer Commission which found that the policy "misrepresented consumers rights".

An investigation was prompted in May last year after a consumer attempted to return a faulty Nokia mobile phone battery to a Nokia Care Centre in South Australia and was asked to sign a three month service agreement, an agreement authorised by Nokia Australia. 

An ACCC spokesperson told CRN that the consumer watchdog found the three month period was "restrictive" for a product of its type. It also found the service agreement improperly forced the consumers to accept Nokia's decision regarding the claim and forced the consumer to agree to allow personal information to be disclosed to third parties.

The spokesperson said that product warranty policies need to be "within reason" and "based on the quality and price of a product". In this case it found that three months was not within reason.

After raising its concerns with both companies, Fone Care "has ceased the refund policy", "ceased using the service agreement in its current form" and "refrained from making false or misleading representations in relation to consumers' statutory warranty rights in the future".

Nokia Australia has agreed to refrain from authorising Fone Care to use any agreement, policy or other document that makes false or misleading representations in relation to consumers' statutory warranty rights in the future.

The ACCC has accepted an administrative undertaking from Fone Care and Nokia Australia and has since closed the investigation.

ACCC chairman Graeme Samuel said, "Consumers are fortunate to have a broad range of technical products to choose from and some of these products are becoming increasingly complex.

"It is more important than ever that consumers know what their statutory warranty rights are and that manufacturers and retailers do not mislead consumers about these rights."

Tracy Postill, communications manager at Nokia Australia & New Zealand said in a statement that "Nokia Care Centres have clarified their returns policy and service terms to address the ACCC's concerns. Under no circumstances do we try to diminish consumers statutory rights."