Upmarket fashion label Sportscraft has paid the price for misleading customers about their right to refund or exchange items.
Sportscraft has paid penalties totalling $21,600 after the Australian Competition and Consumer Commission found the brand might be misleading customers about their shopping rights, in breach of consumer law.
From at least January this year, Sportcraft told customers via their receipt that faulty goods from one of its six clearance stores could not be returned or exchanged.
Sportscraft also stated on its website that items could not be refunded, exchanged, or replaced with a credit note after 21 days.
Under the Australian Consumer Law, customers can seek a remedy from the retailer, such as a replacement or refund, if the product purchased is not of acceptable quality or not fit for any specified purpose.
"Consumer guarantee rights apply for all purchases a consumer makes, and these rights cannot be removed or reduced by a business's terms and conditions," ACCC Commissioner Sarah Court said.
"Clothing retailers cannot exclude or refuse a consumer's right to a remedy simply because the faulty goods are bought at a discount clearance store."
Some Sportscraft items, such as its wool coats, carry a $500 price tag.
The ACCC said it issued two infringement notices.
"This is a timely reminder for all retail stores, particularly for clothing retailers, to review their refund or returns policies to ensure that they do not contravene the [consumer law]," Ms Court said.
"Consumer guarantees remain a priority area for the ACCC. It is concerning that we've seen a number of similar complaints in the fashion industry of late."
The ACCC said it is continuing investigations into at least one other clothing retailer. It expects to take further action.
It said the payment of the penalties was not an admission by Sportscraft of breaching the consumer law.
Sportscraft has amended its refund and returns policy.
Brand owner APG & Co did not respond to requests for comment. The company also owns "an assembly of iconic fashion brands", including Saba and Willow.
