The Good Guys fined A$13.5 million for misleading store credit promotions

The Good Guys has been fined A$13.5 million after the Federal Court found the electrical goods retailer misled customers over store credit promotions and failed to provide credits to more than 20,000 eligible shoppers.

The Australian Competition and Consumer Commission (ACCC) took action over 116 promotions run by the company between July 2019 and August 2023 in which shoppers were offered "StoreCash" worth between A$10 and A$1,000 if they met purchase thresholds, bought specific products or brands, or used particular payment methods. The court found that the retailer did not adequately disclose key conditions, including short expiry periods on the credits and the requirement that customers remain opted in to the company’s marketing communications to receive the benefit.

ACCC chair Gina Cass‑Gottlieb said the regulator was concerned the undisclosed conditions may have encouraged some consumers to buy from The Good Guys or choose it over competitors when they might not have done so if all terms had been clear. "The chance to earn store credit may have encouraged some consumers to make a purchase at The Good Guys they otherwise may not have made or to choose this retailer over others," she said. She added that businesses must clearly disclose any key terms or limitations when advertising promotional offers.

The court found that, for a majority of the promotions, the expiry period on the store credits was as short as seven or 10 days. In many cases, customers were eligible only if they remained subscribed to The Good Guys' marketing communications. The Good Guys also admitted it failed to provide about 21,500 consumers with store credit within the timeframe the promotions specified.

As well as the penalty, the court ordered The Good Guys to provide redress to affected consumers by issuing store credit with a longer expiry period. The retailer has agreed to contact customers eligible for redress and has already compensated two groups of affected customers: those who had unsubscribed from marketing emails and the roughly 21,500 customers who did not receive their credit within the promised timeframe.

The Good Guys cooperated with the ACCC, admitted liability and made joint submissions to the court about appropriate orders, including penalties. The retailer’s parent company is JB Hi‑Fi.

The ACCC said the case underlined its focus on consumer and fair-trading issues in the supermarket and retail sectors and warned businesses that fail to disclose key terms could face court proceedings and significant penalties. The regulator did not say whether further enforcement action was planned against other retailers.

The Federal Court ruling follows growing scrutiny of retail promotion practices and consumer rebate schemes, with regulators increasingly examining whether advertised offers omit information that would be material to a consumer’s decision to purchase. The Good Guys case is among several high-profile matters in recent years in which Australian authorities have challenged marketing that the ACCC says could mislead consumers.

The Good Guys did not provide an immediate public statement beyond acknowledging its cooperation with the ACCC and its agreement to redress affected customers. The company will notify eligible shoppers directly about any credits being issued under the court orders.