In one of the most significant rulings for the Australian retail sector, The Good Guys Discount Warehouses (Australia) Pty Ltd has been ordered to pay $13.5 million in penalties after running misleading store credit promotions between July 2019 and August 2023.

The case, brought forward by the Australian Competition and Consumer Commission (ACCC), highlights how marketing campaigns that look attractive on the surface can sometimes conceal crucial conditions. More than 21,500 customers were affected when they were either not given store credits in time or were subjected to terms they were unaware of.

According to ACCC Chair Gina Cass-Gottlieb, “The Good Guys had failed to adequately disclose some really key conditions attached to these store credit promotions.”

How the Promotions Misled Customers

The promotional scheme, branded as “StoreCash” in several campaigns, promised customers credits ranging from $10 to $1,000 if they spent a minimum amount, bought specific brands, or used selected payment methods.

But the fine print told a different story:

• Some store credits expired in less than 10 days, leaving many unable to use them.
• Customers were often forced to opt-in to marketing communications to qualify.
• In thousands of cases, the promised credits were never issued within the specified timeframe.

These practices, the ACCC argued, had the potential to push customers into making purchases they might not have otherwise made. As Cass-Gottlieb explained, “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.”

Federal Court’s Tough Response

The Federal Court of Australia handed down a clear message. Along with the $13.5 million penalty, the court ordered The Good Guys to:

• Provide redress to customers by reissuing credits with longer expiry periods.
• Contact all eligible customers directly.
• Remediate those who were excluded solely because they did not subscribe to promotional emails.

This decision serves as a reminder that retailers cannot bury important details in small print. Transparency is not optional—it’s the law.

Cooperation from The Good Guys

While the outcome was damning, the retailer co-operated throughout the investigation. The company admitted liability, accepted penalties, and worked with the ACCC on joint submissions to the court.

CEO Terry Smart released a statement saying, “The Good Guys takes its compliance with the law very seriously and has worked cooperatively with the ACCC to resolve the matter. The Good Guys has always sought to provide value and benefits to its customers and has always prided itself on its high levels of trust with consumers.”

Despite these assurances, the damage to consumer trust may take years to repair.

Lessons for the Retail Industry

This case has wider implications for the retail industry in Australia and beyond. The ACCC’s success underscores several key lessons:

1. Transparency is vital: Any promotional campaign must clearly disclose expiry dates, limitations, and conditions upfront.
2. Consumer trust is fragile: Once damaged, it can harm a retailer’s reputation far more than financial penalties.
3. Regulatory bodies are watching: The ACCC and similar agencies globally are tightening scrutiny on misleading promotions.

For businesses, this is a warning shot: cutting corners on disclosure may deliver short-term sales but could lead to massive legal and reputational fallout.

What Customers Should Do

If you were one of the 21,500 affected customers, The Good Guys will contact you to provide redress. According to the ACCC, all new store credits issued will have longer expiry periods, ensuring customers get genuine value this time.

Consumers who believe they were misled are encouraged to keep records of their purchases and reach out directly to The Good Guys or the ACCC for assistance.

Final Word

The Good Guys has long marketed itself as a retailer offering “value and trust.” This ruling, however, is a reminder that even well-known brands are not immune to regulatory oversight. For shoppers, the case reinforces the importance of reading the fine print before jumping into promotional offers that look “too good to be true.”

For the industry, the $13.5 million penalty stands as a wake-up call—transparency and honesty are no longer just moral obligations; they are legal necessities.

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