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ACCC takes The Good Guys to court over alleged store credit sham

The ACCC has instituted Federal Court proceedings against The Good Guys, for allegedly making false or misleading representations about their store credit and ‘StoreCash’ promotions, and failing to provide store credit to eligible consumers.

The ACCC alleges The Good Guys breached Australian Consumer Law when running 116 promotions between July 2019 and August 2023 in which it offered consumers a store credit or StoreCash if they spent a certain amount of money on qualifying products.

The ACCC alleges that “The Good Guys represented that the only requirement to receive the store credit was to make a qualifying purchase, when that was not the case because consumers were also required to opt in to receive marketing communications in order to receive a store credit.”

“We allege that the conditions for consumers to receive a store credit as part of The Good Guys’ promotions were not communicated adequately in The Good Guys’ marketing materials,” ACCC Chair Gina Cass-Gottlieb said.

The ACCC also alleges that The Good Guys represented that store credit or StoreCash would not expire or would expire after a reasonable period, when in fact, for the majority of promotions, it expired within seven to ten days, and that the store failed to provide store credits to thousands of eligible consumers within the time specified in the offers

“We also understand that, for the majority of promotions, the store credit being offered expired within a very short period of time of ten days or less, which many consumers were unaware of,” Cass-Gottlieb said.

“We are concerned that as a result of the alleged conduct, consumers may have purchased products from The Good Guys which they might not have done otherwise.

“Businesses should be on notice that promotional conditions must be prominently disclosed to consumers, rather than buried in hard-to-find locations, or they risk enforcement action under the Australian Consumer Law.

“Even where consumers met the conditions, we allege that The Good Guys did not provide a store credit at all to many eligible consumers,” Ms Cass-Gottlieb said.”

The ACCC is seeking consumer redress, penalties, declarations, compliance orders, publication orders, and costs.

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