Lululemon Australia has paid penalties totalling $32,400 following the ACCC issuing three infringement notices for allegedly false or misleading representations.
The penalties are in regards to consumer guarantee rights.
The ACCC alleges that the brand's use of a statement online represented that consumers were not entitled to return and obtain a refund for, or exchange sale products under any circumstances.
Throughout May the brand listed items online under the heading of "We made too much." The site also read “We made a little extra - don’t be shy, help yourself. It’s yours for keeps so no returns and no exchanges”.
It was these statements that the ACCC alleged were misleading consumers.
Lululemon’s return policy was also scrutinised, as it read that “Final sale items like underwear, water bottles + We Made Too Much gear are yours for keeps”.
The consumer watchdog also believes that Lululemon led customers to believe they were not entitled to a remedy for these products under any circumstances.
The ACCC had also received reports in November 2016 from a customer who had contacted Lululemon requesting a refund for products she considered to be faulty.
The brand responded with an email that said: “We do not offer refunds for quality affected garments”. The ACCC deemed this statement to mean the consumer was not entitled to a refund if the products were faulty.
“The ACCC alleges that Lululemon made representations to customers that they were not entitled to a refund or replacement for products under any circumstances when that was not the case,” ACCC deputy chair Delia Rickard said.
Rickard said consumers were entitled to a refund if a product developed a fault, regardless of whether it was on sale or not.
“If a product or service fails to meet a consumer guarantee, people are automatically entitled to a remedy under the Australian Consumer Law. If products develop a fault which constitutes a major failure, customers are entitled to a refund, even if the product was purchased on sale.”
“Businesses must ensure their refund and returns policy do not breach consumer law, and that representations they make about consumers’ rights to return goods or obtain a refund accurately reflect the consumer guarantee rights under the Australia Consumer Law."