ACCC Accuses Discount Giant of Misleading Promotions, Leaving Shoppers Short-Changed
The ACCC has filed a case in the Federal Court against The Good Guys Discount Warehouses (Australia) Pty Ltd, accusing the company of making false or misleading claims about their store credit and ‘StoreCash’ promotions and failing to provide store credit to eligible customers, violating Australian Consumer Law.
Between July 2019 and August 2023, The Good Guys ran 116 promotions offering store credit or StoreCash to customers who spent a certain amount on qualifying products in their online or physical stores.
The ACCC claims that The Good Guys misled customers by stating that the only requirement to receive store credit was a qualifying purchase, while in reality, customers also needed to opt-in for marketing communications.
“We allege that The Good Guys did not adequately communicate the conditions for receiving store credit in their marketing materials,” said ACCC Chair Gina Cass-Gottlieb.
The ACCC further alleges that The Good Guys misrepresented the expiration terms of the store credit or StoreCash, suggesting it would not expire or would expire after a reasonable period, while in most cases, it expired within seven to ten days.
“We understand that for most promotions, the store credit expired within ten days or less, which many consumers were unaware of,” Cass-Gottlieb added.
The ACCC is concerned that this conduct may have led consumers to purchase products they otherwise would not have.
“Businesses should ensure promotional conditions are clearly disclosed to consumers and not hidden, or they risk enforcement action under Australian Consumer Law,” Cass-Gottlieb warned.
Additionally, the ACCC claims that The Good Guys failed to provide store credits to thousands of eligible customers within the specified time frame or a reasonable time, further breaching Australian Consumer Law.
“Even when consumers met the conditions, The Good Guys often did not provide the store credit at all,” Cass-Gottlieb stated.
The ACCC is seeking consumer redress, penalties, declarations, compliance orders, publication orders, and costs.
