Lululemon penalised for alleged misleading and deceptive conduct
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Lululemon Athletica Australia Pty Ltd (Lululemon) has paid penalties totaling $42,000 after being hit with infringement notices for allegedly making false and misleading representations to consumers regarding their rights to statutory guarantees under the Australian Consumer Law (ACL).
Earlier this year, Lululemon displayed sale items on its website under the heading “We Made Too Much”, stating that “We made a little extra – don’t be shy, help yourself. It’s yours for keeps so no returns and no exchanges”. In the ACCC’s view, this statement falsely represented to consumers that they were not entitled to return and obtain refunds for, or exchange, these goods under any circumstances. In reality, consumers CAN return goods and obtain refunds in certain circumstances, including where the goods are faulty.
Additionally, the ACCC was concerned that in response to a customer’s email request to receive refunds/replacements for goods that were considered to be faulty, a Lululemon representative informed the customer that Lululemon did not offer refunds for quality affected garments. Again, the ACCC considered this statement to be false and misleading, as it misinformed the customer of their rights under the ACL.
The ACCC’s action in response to Lululemon’s alleged conduct serves as a timely reminder to all traders supplying consumer goods to ensure that their refunds and returns policies are compliant with, and that their representatives are fully informed of consumers’ rights under, the ACL.
At Macpherson Kelley, we regularly advise traders on their obligations under the ACL and prepare compliant warranty and returns documentation. For further information on how we can assist your business in this area, please contact us.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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Lululemon penalised for alleged misleading and deceptive conduct
Lululemon Athletica Australia Pty Ltd (Lululemon) has paid penalties totaling $42,000 after being hit with infringement notices for allegedly making false and misleading representations to consumers regarding their rights to statutory guarantees under the Australian Consumer Law (ACL).
Earlier this year, Lululemon displayed sale items on its website under the heading “We Made Too Much”, stating that “We made a little extra – don’t be shy, help yourself. It’s yours for keeps so no returns and no exchanges”. In the ACCC’s view, this statement falsely represented to consumers that they were not entitled to return and obtain refunds for, or exchange, these goods under any circumstances. In reality, consumers CAN return goods and obtain refunds in certain circumstances, including where the goods are faulty.
Additionally, the ACCC was concerned that in response to a customer’s email request to receive refunds/replacements for goods that were considered to be faulty, a Lululemon representative informed the customer that Lululemon did not offer refunds for quality affected garments. Again, the ACCC considered this statement to be false and misleading, as it misinformed the customer of their rights under the ACL.
The ACCC’s action in response to Lululemon’s alleged conduct serves as a timely reminder to all traders supplying consumer goods to ensure that their refunds and returns policies are compliant with, and that their representatives are fully informed of consumers’ rights under, the ACL.
At Macpherson Kelley, we regularly advise traders on their obligations under the ACL and prepare compliant warranty and returns documentation. For further information on how we can assist your business in this area, please contact us.