Computing and IT retail giant PB Tech (PB Technologies Ltd) has been fined $77,000 after pleading guilty to 14 charges brought by the Commerce Commission for selling non-compliant extended warranties.
Between 11 May and 30 November 2017, the company sold over 4,000 of its PB Care extended warranties without giving consumers information to enable them to make an informed choice about whether to buy the extended warranty.
The warranties cost between 10 and 15 per cent of the value of the good depending on its length.
AppleCare warranties were also sold for Apple products with PB Tech not giving consumers a copy of the extended warranty agreement at the time of sale and did not inform consumers of their cancellation rights.
Judge Thomas said in sentencing there is a high need for a deterrent response.
"There is a significant public interest in ensuring that warranties and policies of that nature, renowned for their exclusions and limitations, are fairly provided or that disclosure relating to those is fairly provided to customers so that they can make an informed decision in investing a significant sum of money in that product," he said.
In a statement the Commerce Commission says under the Fair Trading Act, PB Tech should have provided consumers with the following information: a summary of consumers’ rights and remedies under the Consumer Guarantees Act (CGA), a summarised comparison of consumers’ CGA rights and remedies and those provided by the extended warranty, written and verbal information about the right to cancel the extended warranty agreement and obtain a refund if customers changed their minds within five working days, and a written copy of the extended warranty at the time of purchase.
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