ACCC takes reseller MSY Technology to court over misrepresentation of consumer rights

The Australian Competition and Consumer Commission (ACCC) is taking MSY Technology to court alleging the computer reseller misrepresented consumer rights over faulty products.

MSY Technology runs 28 retail stores across the country and an online store that sells computers, computer parts, accessories and electronic goods from brands including Logitech, Microsoft, Samsung and Corsair.

ACCC commissioner Sarah Court said: "The ACCC alleges that MSY Technology breached the Australian Consumer Law by misrepresenting consumers’ rights to a repair, replacement, or a refund when they have purchased faulty products."

According to the ACCC, statements allegedly made by the reseller and some of its employees in New South Wales and Victorian stores misrepresented consumer rights.  

The regulator alleges that MSY claimed it had discretion over whether a customer was entitled to a remedy for a faulty product; that the reseller chose which remedy it would provide to customers; that it only provided remedies for products returned within seven days; that MSY may have required the customer to pay an administration fee to receive a remedy for a faulty product that was out of warranty; and that it did not provide any remedies over faulty software.

This ACCC is examining a three-year period between January 2013 and February 2016.

"Businesses must not mislead consumers about their consumer guarantee rights. Consumers who have purchased a faulty product have a right under the consumer guarantees to remedies which businesses cannot restrict, alter, or remove.

"The ACCC is particularly concerned that this type of conduct by businesses which have a national presence has the potential to cause significant consumer harm," Court said.

The ACCC is seeking declarations, injunctions, a comprehensive compliance program, penalties, and costs. 

This is not the first appearance of MSY Technology in court. In April 2011, the reseller was fined in $203,500 for misleading customers over their warranty entitlements.

CRN reached out to MSY Technology by phone and email.