The Good Guys, owned by ASX-listed JB Hi-Fi, has been ordered to pay $13.5 million in penalties for misleading shoppers about its store credit promotions, following a Federal Court ruling. The Australian Competition and Consumer Commission (ACCC) initiated legal action in July 2024, citing over 100 promotions run by the white goods retailer between July 2019 and August 2023. The Good Guys admitted to misleading conduct in its advertisements for these promotions. The Good Guys is a major retailer of consumer electronics, home appliances, and related products. JB Hi-Fi is a leading Australian retailer of consumer electronics, home entertainment, and white goods.
The ACCC raised concerns that The Good Guys did not adequately disclose key conditions attached to the store credit promotions. Specifically, advertisements failed to clearly state the expiry period of the store credit. In many instances, customers would only receive the store credit if they agreed to remain subscribed to The Good Guys’ marketing communications. ACCC Chairwoman Gina Cass-Gottlieb stated the regulator pursued legal action due to concerns that consumers may have made purchases they otherwise would not have, had they been fully aware of all the conditions.
The Good Guys also acknowledged that approximately 21,500 consumers did not receive their store credit within the promised timeframe. The court has mandated that The Good Guys extend the expiration dates for affected customers as part of the redress. The Good Guys will be contacting consumers who are eligible for this compensation. The ACCC has stated that affected consumers will be contacted directly regarding the extension of their store credits.
