Sportscraft has made amendments to its refund and return policy after being slapped with $21,600 by the Australian Competition and Consumer Commission (ACCC).
The ACCC reports it had reasonable grounds to believe Sportscraft had been misleading consumers via its tax invoice receipts.
According to the investigation, Sportscraft had been issuing receipts since January this year that stated that consumers would be unable to return or exchange faulty goods purchased from its clearance stores.
In addition, the retailer had also stated on its website since March that it would refuse to refund, exchange or offer a credit note on items more than 21 days after purchasing.
Sportscraft was issued with two infringement notices as an outcome of the investigation.
ACCC commissioner Sarah Court said that the incident should act as a warning to all retailers to ensure consumer guarantee rights are in line with current legislation.
“Consumer guarantee rights apply for all purchases a consumer makes, and these rights cannot be removed or reduced by a business’s terms and conditions.
"Clothing retailers cannot exclude or refuse a consumer’s right to a remedy simply because the faulty goods are bought at a discount clearance store.
“This is a timely reminder for all retail stores, particularly for clothing retailers, to review their refund or returns policies to ensure that they do not contravene the ACL."
Sportscraft is currently owned and operated by parent company APG & Co.