The Good Guys in Hot Water Over Alleged Store Credit Shenanigans

The Australian Competition and Consumer Commission (ACCC) has launched legal action against The Good Guys, alleging the electronics retailer misled customers about store credit promotions and failed to honour them in numerous instances.

The ACCC claims that between July 2019 and August 2023, The Good Guys ran 116 promotions offering store credit or “StoreCash” to customers who spent a certain amount on qualifying products. However, the watchdog alleges that the promotions were riddled with misleading information and unfair practices.

What are the allegations?

• Hidden Opt-In: The ACCC claims The Good Guys failed to adequately disclose that customers needed to opt-in to marketing communications to receive the advertised store credit. This crucial information was allegedly buried within the terms and conditions, rather than being clearly communicated upfront.
• Misleading Expiry Dates: The promotions allegedly advertised store credit as not expiring or having a reasonable expiry period. In reality, the ACCC alleges that most credits expired within a shockingly short timeframe of seven to ten days, leaving many customers in the lurch.
• Failure to Provide Credit: Perhaps most concerning, the ACCC alleges that even when customers met all the conditions, The Good Guys failed to provide the promised store credit to thousands of eligible shoppers.

ACCC Takes a Stand for Consumers

ACCC Chair Gina Cass-Gottlieb expressed concern that consumers may have been swayed to purchase from The Good Guys based on these misleading promotions.

“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,” Ms Cass-Gottlieb warned.

What happens next?

The ACCC is seeking a range of actions against The Good Guys, including:

• Consumer Redress: Compensation for affected customers who missed out on their rightful store credit.
• Penalties: Significant financial penalties for breaching the Australian Consumer Law.
• Compliance Orders: Court orders requiring The Good Guys to overhaul its promotional practices and ensure future compliance.

The Bottom Line: This case serves as a stark reminder to businesses that transparency and fairness are paramount when it comes to promotions. Misleading consumers to drive sales is not only unethical but also illegal and can lead to serious consequences.