Wiggle pays penalty for misleading consumers about their rights

Flow-Rider

Burner
Well there you go, ACCC isn't a toothless tiger after all

wiggle-pays-penalty-for-misleading-consumers-about-their-rights?

Wiggle pays penalty for misleading consumers about their rights
12 December 2018


Online sporting goods retailer Wiggle Limited (Wiggle) has paid a $12,600 penalty after admitting its customer service staff likely misled Australians about their rights to remedies for faulty products.

Wiggle has also provided a court enforceable undertaking to the ACCC admitting it likely breached the Australian Consumer Law.

“Under the Australian Consumer Law, consumers are entitled to a repair, replacement or refund when there has been a major problem with the product. This law applies to all businesses that sell products to consumers in Australia, including overseas based businesses,” ACCC Deputy Chair Delia Rickard said.

Wiggle’s customer service staff told some Australian customers who were trying to obtain a refund for faulty products that:

  • Wiggle was not subject to the Australian Consumer Law (ACL) as it is based in the United Kingdom (UK)
  • the consumer needed to contact the manufacturer
  • Wiggle would not provide a full refund for a faulty product as the product had been used.
“It does not matter that Wiggle is based overseas or that the consumers had used the goods, the Australian Consumer Law still applies to faulty products,” Ms Rickard said.

“Statements by retailers which seek to limit or exclude the Australian consumer guarantees are misleading and likely to contravene the Australian Consumer Law.”

“It’s also misleading for a retailer to tell the customer they must go to the manufacturer for a remedy when a product is faulty. Under the Australian Consumer Law, consumers are entitled to remedies from the business that sells them a faulty product,” Ms Rickard said.

Wiggle’s website also contained misleading information that only English and UK law applied to transactions made through the website. Wiggle has since amended this section of its website so it now accurately reflects Australian customers’ rights under the Australian Consumer Law.

In its court enforceable undertaking, Wiggle has agreed to implement an ACL compliance policy, and train its customer service staff in ACL compliance.

The undertaking signed by Wiggle is available at: Wiggle Limited - Section 87B.

Background
Wiggle is based in the UK but sells sporting goods to customers worldwide, including to Australians through the wiggle.com.au website.

More information about consumer guarantee rights are available at the ACCC’s website.

Release number:
261/18
ACCC Infocentre:
Use this form to make a general enquiry.

Media enquiries:
Media team - 1300 138 917
 

Ultra Lord

Hurts. Requires Money. And is nerdy.
Theres no way 12k would come close to covering what they made by not honouring warranty’s.

Glad they did something though
 

Warp

Likes Dirt
“It’s also misleading for a retailer to tell the customer they must go to the manufacturer for a remedy when a product is faulty. Under the Australian Consumer Law, consumers are entitled to remedies from the business that sells them a faulty product,”

Then why JB HiFi normally tell you "you have 1mo warranty with us, then 1yrs with the Manufacturer"? Or something along those lines?
 

Flow-Rider

Burner
“It’s also misleading for a retailer to tell the customer they must go to the manufacturer for a remedy when a product is faulty. Under the Australian Consumer Law, consumers are entitled to remedies from the business that sells them a faulty product,”

Then why JB HiFi normally tell you "you have 1mo warranty with us, then 1yrs with the Manufacturer"? Or something along those lines?
A lot of retailers know people just don't have the time or patience to follow up a lot of these warranties so they get away with it.
 

pink poodle

気が狂っている男
Have I invented a memory of wiggle setting up an Australian operation a few years ago? I am sure that there was a bit of media about it at the time.
 

Flow-Rider

Burner
Have I invented a memory of wiggle setting up an Australian operation a few years ago? I am sure that there was a bit of media about it at the time.
I have no idea how these laws work but I wonder if they need to register here as a business to pay GST.
 

Calvin27

Eats Squid
Then why JB HiFi normally tell you "you have 1mo warranty with us, then 1yrs with the Manufacturer"? Or something along those lines?
I once claimed a warranty on a product from JBHiFi. They basically initiated the process with the manufacturer and then just left the rest for me to do. It was kind of sneaky. Stopped buying stuff from there after that.

I haven't had trouble with wiggle though (or other retailers). On tyre I bought had a really obvious bubble and they asked me to send a photo they just sent a new one.
 

yuley95

soft-arse Yuley is on the lifts again
Have I invented a memory of wiggle setting up an Australian operation a few years ago? I am sure that there was a bit of media about it at the time.
Yeah I recall that. Was weird though. Like they just had a .au at the end of their website and called it their Australian shop
 

pink poodle

気が狂っている男
Yeah I recall that. Was weird though. Like they just had a .au at the end of their website and called it their Australian shop
It had a bit to do with allowing domestic returns too I think. It is also probably where they send all their parcels in one big bulk batch.
 

John U

MTB Precision
“It’s also misleading for a retailer to tell the customer they must go to the manufacturer for a remedy when a product is faulty. Under the Australian Consumer Law, consumers are entitled to remedies from the business that sells them a faulty product,”

Then why JB HiFi normally tell you "you have 1mo warranty with us, then 1yrs with the Manufacturer"? Or something along those lines?
If it doesn’t meet the Australian consumer guidelines it’s JBs responsibility to sort it out, not yours.

I had some fucked up dealings with David Jones and suit manufacturer Ted Baker. Both companies spun shit and spun out the process for months. Mentioned my consumer protections and was told by DJs that they were meeting their responsibilities. They weren’t. Sucked it up from there. Was over it. Will never buy anything from either boc’s again.
 

teK--

Eats Squid
“It’s also misleading for a retailer to tell the customer they must go to the manufacturer for a remedy when a product is faulty. Under the Australian Consumer Law, consumers are entitled to remedies from the business that sells them a faulty product,”



Then why JB HiFi normally tell you "you have 1mo warranty with us, then 1yrs with the Manufacturer"? Or something along those lines?
What Jb tend to offer is an express 1 month warranty where they will swap a faulty product for new from their own stock rather than leave you waiting for the manufacturer to process a warranty claim through the store.
 

Binaural

Eats Squid
I've personally returned a couple of items for warranty to wiggle and had no problems. This may have been a case of one or a small number of customer service person acting out of line with company practice and getting taken to court, which would explain the relatively small fine. This sort of "train your people so this shit doesn't happen again" seems to be a common slap on the wrist for relatively minor offences from the ACCC.
 

slider_phil

Likes Bikes and Dirt
Interesting. Just last week a mate went to use his Tacx Neo and it was broken. Sent Wiggle an email and they claimed the same thing, contact Tacx as we're not Australian. Luckily it looks like Tacx are taking care of him. Gonna send him this article lol.

Oh, and my Tacx Flux broke the week prior, but I had bought it through Pushy's and they just emailed me a postage paid return slip and told me to send it back to them. Painless
 
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ozzybmx

taking a shit with my boobs out
Typical, I had a whinge on the CRC thread about what they did to the CRC business after the take over. They were always more astute and hard lined on issues caused by themselves... I always came away from an issue with them, feeling like I had lost out for something that was their fault.

Whereas CRC made you feel compensated for an issue or problem with your order, probably the reason my Bike24 orders died after they bought them over.
I have built many bikes from Wiggle orders over the years but its been quite a while since I ordered from them, only a couple from CRC since the takeover... when the discount was astronomical. Plus only a few from Bike24 since the Wiggle-CRC buy out.
 

schred

Likes Bikes and Dirt
It's not naivety, it's part of the business model. The old corporate tradeoff efficiency. Gerry fckwit Harvey is renowned for it with Harvey Norman. He even had signs up in store at some point attempting to limit people's rights to refunds and warranties. They've been to court quite a fewftimes over it from memory, and lost each time. Scum can rot in hell. Wouldn't surprise me if he spent a his last few years in jail for some random white collar scheme that is revealed out of nowhere, lower than the shit on your shoe.
 

Elbo

pesky scooter kids git off ma lawn
A lot of retailers know people just don't have the time or patience to follow up a lot of these warranties so they get away with it.
It took me 4 months to get a refund from JB Hifi after ordering a new computer which turned out to be a ex display, ex return computer that was faulty from the start. When I finally got them to admit it was not fit for purpose, and not sold as described, they tried to refund me with gift cards. I said, 'no, straight back to my debit card is fine thanks.'
Endless phone calls and visits with a desktop computer; they just try and make it hard enough that you'll give up and cut your losses.
 

oliosky

Likes Bikes and Dirt
It's not naivety, it's part of the business model. The old corporate tradeoff efficiency. Gerry fckwit Harvey is renowned for it with Harvey Norman. He even had signs up in store at some point attempting to limit people's rights to refunds and warranties. They've been to court quite a fewftimes over it from memory, and lost each time. Scum can rot in hell. Wouldn't surprise me if he spent a his last few years in jail for some random white collar scheme that is revealed out of nowhere, lower than the shit on your shoe.
Totally. Look at the company old shonly Gerry keeps. Alan Jones, Ray Hadley, John Singleton et al. Either a white collar scheme or fixing horse races...

Sent from my SM-G960F using Tapatalk
 
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