The ACCC commenced proceedings in 2024, alleging that customers were misled into thinking they would receive store credit when purchasing eligible products. In reality, the offers included undisclosed conditions, leaving many customers without the promised benefits.
Key findings from the court
The marketing material only stated ‘Learn more’ or ‘click for details’. The Court found that the fine print failed to adequately disclose key opt-in and credit expiry conditions.
1. Marketing opt-in requirement
- Customers had to opt-in to receive marketing emails or SMS messages to access store credits and had to remain opted-in for a minimum period.
- This condition was not prominently disclosed and promotional material was considered misleading.
- The Court confirmed that promotional benefits cannot be conditional on marketing consent unless explicitly and transparently disclosed.
- While the opt-in condition was disclosed in the terms and conditions for the promotions, they were published on a standalone page on The Good Guys’ website which was insufficient to alert consumers to the condition due to the material nature of this condition.
2. Unreasonably short expiry periods
- Store credits had to be used within a certain period of time (ranging from 7 to 92 days), despite customers being given the impression that the store credit would not expire or would remain available for use for a reasonable period.
- This condition was not prominently disclosed and the promotional material was considered misleading.
- Omitting key expiry information undermines consumer trust and breaches the Australian Consumer Law.
3. Failure to deliver promised benefits
- Approximately 21,500 customers did not receive the credits they were promised.
- The Court found that this constituted a breach of the Australian Consumer Law and highlighted the importance of operational controls to ensure promotions are fulfilled.
Key considerations for Automotive Marketing
Automotive brands regularly run campaigns such as cashback offers, test-drive incentives, free servicing, loyalty credits, or extended warranties. These could carry similar risks if not executed transparently.
Key risk areas include:
- Hidden conditions – Not disclosing key requirements (e.g. marketing consent) could be misleading. Consider whether opt-in conditions need to be explicit in the headline material.
- Expiry periods – Clearly state redemption periods in the headline material. Avoid burying expiry dates in fine print.
- Failure to honour offers – Track and fulfil all eligible rewards. Operational failures can attract ACCC scrutiny and damage brand reputation.
- Disclaimers and T&Cs – Fine print will not protect a misleading headline. Ensure headline claims match reality, and that material conditions are visible and easy to understand.
How we can assist
Our Automotive Legal Team can provide support with:
- Campaign compliance reviews – Pre-launch review of advertisements, dealer promotions, and incentive schemes.
- Terms & Conditions drafting – Drafting clear, enforceable, and consumer-friendly terms and conditions.
- Risk management advice – Structuring offers to ensure they comply with Australian Consumer Law requirements, including handling opt-ins correctly.
- Complaint response planning – Providing support with responding to challenges from customers or regulators.
For tailored advice, please contact Long Saad Woodbridge Lawyers today on (02) 9279 4888.
Article courtesy of Isaac Gibbs and Luke Cai
Disclaimer
The information in this article is general in nature and is not intended as legal advice. You should not do or fail to do anything in reliance on information in it. We do not accept any responsibility for any loss that you suffer if you do. You should seek professional advice before you do anything about the issues set out in this article.
