Regulatory action
Fisher & Paykel to pay $200,000 for false or misleading extended warranty representations
The Federal Court has ordered by consent that Fisher & Paykel Customer Services Pty Ltd (Fisher & Paykel) made a false or misleading representation in the course of offering an extended warranty to consumers. The Court also imposed a pecuniary penalty of $200,000.
From 2011 to 2012, Fisher & Paykel sent letters to customers who had purchased a Fisher & Paykel appliance inviting them to purchase an extended warranty. The statement included a number of declarations, including: "Your Fisher & Paykel appliance is now a year old, which means that you have 12 months remaining – after that your appliance won't be protected against repair costs."
The Judge held that the letters contained the false or misleading representation that consumers would not be protected against repair costs for their appliance after two years from the date of purchase, unless they purchased the extended warranty. In reality, under Australian Consumer Law, consumers may be protected beyond the manufacturer's warranty period without the purchase of an extended warranty.
Link: ACCC v Fisher & Paykel Customer Services Pty Ltd [2014] FCA 1393
The information in this article is for informative purposes only and should not be relied on as legal advice. Please contact Chapman Tripp for advice tailored to your situation.
