Lululemon cops fine for false, misleading consumer rights terms

Athleisure brand Lululemon Athletica Australia has forked out more than $32,000 after it was caught falsely telling customers they were not entitled to a refund or replacement products, the consumer watchdog says.

The Australian Competition and Consumer Commission issued Lululemon three infringement notices, totalling $32,400, saying the retailer, which sells yoga-inspired athletic apparel, made false or misleading representations about consumer guarantee rights.

The ACCC alleges Lululemon’s website advertising sale products falsely stated consumers they were not entitled to a return, remedy, or to obtaining a refund or an exchange of a product under any circumstance.

We sent video journalist Mark Conway to find out.

The popular Canadian yoga and running brand, which opened its doors in Australia in 2004, also refused to give a customer a refund for products she considered faulty.

ACCC deputy chair Delia Rickard said Lululemon made these representations to customers when it was not the case under Australian consumer law.

“If a product or service fails to meet a consumer guarantee, people are automatically entitled to a remedy,” Ms Rickard said.

“If products develop a fault which constitutes a major failure, customers are entitled to a refund, even if the product was purchased on sale.”

Under Australian consumer law, purchased products and services come with automatic guarantees that they will work and do what consumers expect.

A retailer can’t refuse to help a customer seeking a remedy and can’t direct a customer to the manufacturer or importer, the ACCC said.

Ms Rickard said businesses must ensure their representations about consumers’ rights accurately reflect the law.

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