The Australian Federal Court has ordered Fitbit, owned by Google, to pay $11 million for admitting to making false representations to 58 consumers regarding their consumer guarantee rights. Fitbit acknowledged that between November 2020 and February 2022, customer service staff wrongly informed 40 consumers that they were not entitled to a replacement product after the two-year "warranty period" had supposedly expired. Of these, 39 had contacted Fitbit about replacement product issues. Additionally, Fitbit staff told 18 other consumers between May 2020 and February 2022 that they could not claim a refund unless they returned the faulty product "within 45 days of purchase." The Australian Competition and Consumer Commission highlighted the potential inconvenience and additional expenses incurred by consumers due to this misinformation. Despite Fitbit's apology, the court determined that previous compliance measures did not prevent the violations.
Key Points
1. The Federal Court in Australia has directed Fitbit, owned by Google, to pay $11 million after admitting to providing false information to 58 consumers regarding their rights to a refund or replacement for faulty devices.
2. Fitbit acknowledged that between November 2020 and February 2022, its customer service incorrectly informed 40 consumers that they were not entitled to a replacement product beyond the two-year "warranty period," leading to additional expenses for repairs or replacements.
3. Of the 40 consumers, 39 had contacted Fitbit about issues with replacement products, and Fitbit misrepresented that the warranty period was tied to the original device, which had already expired.
4. Additionally, Fitbit admitted that its staff wrongly informed 18 other consumers between May 2020 and February 2022 that they could only receive a refund if they returned the faulty product within 45 days of purchase.
5. The Australian Competition and Consumer Commission (ACCC) emphasized that all consumer products carry a guarantee of acceptable quality, and retailers must offer remedies for faulty goods, such as repair, replacement, or refund, depending on the circumstances. Despite Fitbit's apology, the Federal Court noted that the compliance measures from a 2018 court-enforceable undertaking did not prevent the recent violations.
(With Agency Inputs)
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