Electronics retailer JB Hi-Fi is being sued over claims it unlawfully sold extended warranties to customers.
Warranties give customers a certain window of time to have faulty goods repaired, replaced, or refunded.
However, JB Hi-Fi has been accused of selling warranties of “little to no value” by charging customers for protections they were already entitled to under Australian Consumer Law.
JB Hi-Fi class action
A class action is a type of lawsuit where many people are represented by one entity. The action against JB Hi-Fi has been brought by legal firm Maurice Blackburn in the Supreme Court of Victoria.
It’s seeking compensation for customers who may have purchased extended warranties on JB Hi-Fi products such as electronic devices, home entertainment and home appliances between 1 January 2011 and 8 December 2023.
The class action claims the warranties were unlawful because the Australian Consumer Law (ACL) already gives them “the same (and often better) rights” without paying.
Under the ACL, consumers are guaranteed a repair, replacement or refund when there’s a fault with the product purchased.
Maurice Blackburn said JB Hi-Fi “also failed to give customers important information about their rights… to make a properly informed decision about whether to buy an extended warranty.”
Other retailers
The lawsuit comes after consumer group Choice announced it was investigating several Harvey Norman, The Good Guys, and JB Hi-Fi stores across Australia.
Choice said it was looking into extended warranty deals being offered across the three retailers in November last year.
While extended warranties can add further benefits to what’s already in law, Choice found customers were paying for rights they already had.
Response
In its response to the class action, JB Hi-Fi said it intends to “vigorously defend the proceedings”.
A company announcement released today said, “JB Hi-Fi takes compliance with its legal obligations very seriously and considers that it has complied with relevant laws at all times.”
Maurice Blackburn has not specified how much compensation it is seeking.
