Popular homeware giant Freedom Furniture is fined $25,200 for misleading customers about returning products

  • The homewares giant was ordered to pay the fine by the consumer watchdog
  • It was accused of misleading customers about the right to return faulty items
  • According to Australian law, shoppers have the right to return defective goods

Homewares giant Freedom Furniture have been slapped with a $25,200 fine for misleading customers about their right to return faulty goods.

The company was ordered to pay the huge fine over a statement that appeared on its website between August and September 2019. 

Customers were told they 'cannot refund or exchange furniture' except at the store's 'discretion'. 

Steinhoff Asia Pacific Pty Ltd, which trades as Freedom Furniture, was ordered to pay the penalty by the Australian Competition and Consumer Commission.

According to the ACCC, the statement read: 'Furniture items cannot be returned or exchanged, except at Freedom's absolute discretion.' 

Homewares giant Freedom Furniture (pictured) have been slapped with a $25,200 fine for misleading customers

Homewares giant Freedom Furniture (pictured) have been slapped with a $25,200 fine for misleading customers

While Australian law says shoppers have the right to return faulty items, ACCC Commissioner Sarah Court said the statement could give consumers the impression that the store would have to green light the return of defective products. 

'Retailers must not misrepresent consumer guarantee rights to their customers,' she said.

'Under the Australian Consumer Law consumers have the right to ask for their choice of a repair, replacement or refund when they have purchased a product that has a fault which amounts to a major failure.'  

Freedom Furniture was ordered to pay the penalty by the ACCC (pictured, boxes containing Freedom Furniture goods)

Freedom Furniture was ordered to pay the penalty by the ACCC (pictured, boxes containing Freedom Furniture goods)

A Freedom Furniture spokesperson told Daily Mail Australia the retailer agreed to pay the fine. 

'The ACCC's concern was that language on freedom's website regarding its returns policy was potentially confusing to customers as to what their rights were.

'The language on the website has been updated to ensure that customers have a clear picture and understand their rights under freedom's returns policy and under Australian Consumer Law.'

WHEN CAN YOU RETURN A PRODUCT? 

Consumers have the right to ask for a replacement or refund if a product is faulty.

A product is considered faulty when:  

- It has a problem that would have stopped someone from buying it if they’d known about it.

- It is significantly different from the sample or description.

- It is substantially unfit for its common purpose and can’t easily be fixed within a reasonable time.

- It doesn’t do what you asked for and can’t easily be fixed within a reasonable time.

- It is unsafe.

If the fault is considered minor and can be repaired, the business can choose to fix the item at no cost to the consumer instead of issuing a replacement or refund.

Source: ACCC 

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Popular homeware giant Freedom Furniture is fined $25,200 for misleading customers

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