Fitbit was fined $11 million by the Australian Competition and Consumer Commission (ACCC) after the maker of smartwatches and fitness trackers admitted that it misled consumers over its return policies.
According to a statement from the ACCC, Fitbit, acquired by Google in 2021, admitted to making false, misleading or deceptive claims to 58 customers between 2020 and 2022. The case is the second brought against Fitbit by the ACCC after it raised concerns about warranties offered by the company in 2018.
“In this case, consumers may have incurred additional expense and inconvenience paying for repairs or replacement products because they were told false and misleading information about their consumer guarantee rights,” Acting ACCC Chair Catriona Lowe stated. “All products sold to consumers come with a guarantee that goods are of acceptable quality, and retailers must provide a remedy for faulty goods if this guarantee has not been met, which includes repair, replacement or refund, depending on the circumstances.”
Fitbit admitted that its customer service staff told 40 consumers, between around November 2020 and February 2022, they had no right to a replacement product because Fitbit’s two-year warranty period had expired. Of those 40 consumers, 39 had contacted Fitbit about a problem with a replacement product, and Fitbit represented that the warranty period was that of the original device, which had expired.
In one example, a consumer complained to Fitbit about a faulty device that the company had recently provided as a replacement for the original defective device by Fitbit. The purchase date for the original device was more than two years ago.
The Fitbit customer service representative agreed the new device was defective but informed the customer that they were not eligible for a replacement, saying, “Your device does not meet the requirements for a replacement…. based… on the original purchase date.”
Fitbit also admitted that its employees told 18 other customers from about May 2020 to February 2022 that they did not have a right to a refund unless they returned the faulty product “within 45 days of purchase.”
Fitbit apologized for its conduct, and the Federal Court recognized that the compliance measures implemented under a 2018 court-enforceable undertaking by Fitbit (Australia) Pty Ltd did not prevent the contraventions.
“We took this action as a reminder to Fitbit, and other businesses, that they must honour their customer’s consumer guarantee rights without restrictions and not mislead consumers about these rights,” Lowe said. “We are pleased Fitbit admitted its misconduct, especially since this is the second time we have had to respond to a company in the Fitbit group with concerns about representations involving consumer guarantee rights.”
The parties filed joint submissions, a statement of agreed facts and admissions, and joint proposed orders.
Photo courtesy Fitbit
