Dodgy receipt costs company $21,600

By Frank Chung of news.com.au

This receipt got Sportscraft into trouble. Photo / Supplied
This receipt got Sportscraft into trouble. Photo / Supplied

Australian clothing retailer Sportscraft has been left red-faced and fined $21,600 by the consumer watchdog for misleading consumers.

Here is the receipt that got it in trouble. See if you can spot the mistake:

Photo / Supplied
Photo / Supplied

No, it's not the fact that "Brisbane" is misspelt - although it should be.

Under the Australian Consumer Law, shoppers are afforded a number of rights whenever they purchase goods or services in Australia.

The last sentence on the receipt is the problem: "There are no refunds or exchanges on samples even if the items are damaged or faulty."

In fact, that's wrong. The law guarantees consumers the right to ask for repair, replacement or refund if the product is faulty - even if the product was purchased on sale.

And it is specifically against the law for businesses show signs or otherwise claim that they do not give refunds under any circumstances, including for gifts and during sales.

The Australian Competition and Consumer Commission slapped Sportscraft with two infringement notices following an investigation into the recognition of consumer guarantee rights in the clothing industry.

In addition to the receipts, which were issued from at least January this year, Sportscraft also stated on its website that it would not refund, exchange or credit an item more than 21 days after purchase.

"Consumer guarantee rights apply for all purchases a consumer makes, and these rights cannot be removed or reduced by a business's terms and conditions," ACCC Commissioner Sarah Court said.

"Clothing retailers cannot exclude or refuse a consumer's right to a remedy simply because the faulty goods are bought at a discount clearance store. This is a timely reminder for all retail stores, particularly for clothing retailers, to review their refund or returns policies to ensure that they do not contravene the ACL."

Under the ACL, goods must be of acceptable quality, fit for any specified purpose and must match any description given or sample shown.

"Consumer guarantees remain a priority area for the ACCC. It is concerning that we've seen a number of similar complaints in the fashion industry of late," Ms Court said.

"The ACCC is continuing investigations regarding at least one other clothing retailer, and expects further action in this area."

Sportscraft has subsequently made amendments to its refund and returns policy.

- news.com.au

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