MSY Fined $750,000 For Misleading Warranties, Again

Image: Gizmodo

Cut-rate computer parts retailer MSY has been slapped with a $750,000 fine from the Federal Court for misleading customers on their rights around warranties. What's worse than a $750,000 fine? The fact that this isn't even the first time this has happened.

The ACCC case against MSY is the second time the retailer has been in the crosshairs -- in 2012, MSY was fined $203,500 for is deceptive warranty practices.

In both email responses to customers and in person, MSY admitted to the Court it had misled customers on their rights under Australian Consumer Law for products that developed faults.

ACCC deputy chair Delia Rickard is appropriately blunt in her statement on the matter: "MSY has misrepresented consumers' rights to a repair, replacement, or a refund where a product developed a fault. Businesses must ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law."

As well as the $750,000 fine, MSY has agreed to be put through a comprehensive training program on the ACL, to publicise its failings, and to pay $50,000 of the ACCC's court costs.

MSY, which has 28 stores around Australia and bills itself as "the name you can trust" when it comes to buying PC components, laptops and other computing accessories, is well known for its ultra-budget website, its PDF price lists of stock and the abruptness of its counter staff.


Comments

    Anyone surprised?

      lol my thoughts exactly. Hence why I only ever buy from MSY when I have NO other choice. That, and getting them to answer the phone is like trying to get blood from stone.

    Here I am sussing out a new monitor and my friend tells me to go MSY, much better retailers to go to. Yeah I might spend an average $2-10 more on the item, but MSY have always been dodgy, lack any customer service and my god does it take them forever to find the item you're buying. I experienced it 6 years ago, and then went back less than a year and a half ago (because my CPU fan stopped working and everywhere else was closed) and nothing changed

      I actually got my 4k monitor from the Slacks Creek MSY store ages ago. It was the only place that had one that was in my price range, and when I got there, I found out it was an ex-demo one (just sat on the shelf, but wasn't ever turned on.) Upon finding that out, I managed to get them to knock a percentage off the price, which meant I only paid $485 for a 28" 4K screen! Thankfully I'd had zero issues with it.

    I'm lucky my local store is pretty good. I've heard the horror stories, but never experienced it myself. I've had to return a DOA modem and they just gave me a new one on the spot. I never try and get advice from them though. I know what I want. I go in and get out.

    Edit: my local MSY is Balcatta, W.A.

    Last edited 26/10/17 11:42 am

      Same, not to take away anything from anyone elses experiences but the store I've been to is usually pretty alright (Fyshwick), I've heard it's the Sydney stores that contribute a lot to the bad rep.

        Melbourne stores aren't much chop either, but it's part of their charm.

        There must be a training program to create shop assistants capable of sitting directly in front of you typing away at a computer for 10 minutes without ever looking up or acknowledging your presence. And for them to be consistently angry at you for trying to buy things. That's a learned skill.

        I disagree, the Fyshwick store staff were terrible. Mind you this was getting on 9 years ago so maybe that has changed.

      My local store is quite good. I had to take back a DOA motherboard. The guy in the store even went as far as testing another CPU in case that was what was faulty. Once he was sure it was a DOA we swapped it over no issue. I remember the stores when i lived in Sydney and agree with @acosnave that it is probably a Sydney thing.

    lol!
    I have zero sympathy for msy, mwave is just as bad IMHO.
    Bought something yesterday for $150 and ended up paying another $50 in additional charges, handling and processing fees and then another $20 for postage.....

    money grubbing pigs

    "The name you can trust". This pretty well destroys that, a second time around.

    In my experience, Gamedude has been far worse than MSY. Anyone know if Gamedude has ever been slapped with something like this? I'd be really surprised if they haven't.

    "MSY has agreed to be put through a comprehensive training program on the ACL"

    And it couldn't be more vague or confusing...

    This computer part thingy here has 1 year standard warranty, and then covered by australian consumer law for a "reasonable period" from the date of ownership until the general failure of the product becomes apparent... No hard numbers like 2-3 years extra, just "reasonable period".

    Oh no they've done it again!

    MSY have breached their federal court order by removing the direct phone number to a senior staff member to resolve consumer guarantee issues.

    However that is just the tip of the iceberg, today they've been caught out by the regulars at OzBargain for "Bait and Switch" advertising, offering 30% off Razer products, and prior to the sale significantly inflating the prices, which is illegal under Australian consumer law.

    Both issues have been flagged with the ACCC and an "unprecedented" fine is expected to be handed down.

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