Fitbit to pay $11m after being fined for misrepresentation over refunds

Popular fitness brand Fitbit has been ordered to pay millions of dolllars in penalties after admitting making 'false, misleading or deceptive representations' to some customers about their rights regarding a refund for what they said was a faulty device.

Australia's Federal Court ordered the US-based company to pay $11 million after the company's customer service staff incorrectly told 40 customers they did not have a right to a replacement product.

The incidents happened over 18 months between November 2020 and February 2022.

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Fitbit admitted that its customer service staff told 40 consumers they did not have a 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.

Fitbit also admitted that its staff told 18 other consumers they did not have a right to a refund unless they returned the faulty product 'within 45 days of purchase'.

Fitbit admitted that its representations were false or misleading, and that they constituted conduct that was misleading or deceptive conduct, or likely to mislead or deceive.

The US-based consumer electronics and fitness company provides health and fitness devices, including wearable trackers.

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A spokesperson from the ACCC said consumers may have incurred additional expense and inconvenience paying for repairs or replacement products

"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," Acting ACCC Chair Catriona Lowe said.

All consumers have consumer guarantee rights under the Australian Consumer Law.

Fitbit has since apologised for its conduct.