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.
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.