ACCC nabs Mwave for Trade Practices Act breach

Online retailer admits it was at fault over misleading warranty and refund statements

Online IT retailer Mwave has amended warranty and returns information on its Web site, following intervention by the Australian Competition and Consumer Commission (ACCC).

The ACCC raised concerns that Esel Pty Ltd, trading as Mwave, was not taking responsibility for warranty claims but instead directing customers to manufacturers. The company’s return policy also required consumers to pay any shipping costs to return faulty goods to Mwave. The ACCC said that if the return of faulty goods is necessary, then the cost should be borne by the seller.

“Online traders should be aware that the ACCC reviews sites regularly and will consider action where remedial work is not quickly undertaken,” said ACCC chairperson Graeme Samuel.

“Consumers have the same rights online as if they were to walk into a store. Basically, they can expect that a product would have a level of quality and performance that would be reasonable to expect, do what it is meant to do and match its description.”

The ACCC added that Mwave has admitted it was at fault and has agreed to consider warranty claims for faulty products purchased since 1 July, 2007, where consumers were denied a remedy due to the admitted false and misleading statements. Mwave will put up a notice on its site to explain the matter to customers.

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Tags online shoppingAustralian Competition and Consumer Commission (ACCC)Mwave

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