Fitbit set for legal faceoff with Australian watchdog over refund and replacement policy
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Google-owned fitness company Fitbit has been criticized by new allegations on behalf of Australia’s competition watchdog, the ACCC (Australian Competition and Consumer Commission), alleging that the company has made “false or misleading statements” about customer warranty rights” in the United States. under Australian Consumer Law after their Fitbit wearable devices malfunctioned”.
The allegations further allege that, notably between May 2020 and February 2022, Fitbit made statements to Australian consumers that they would not be entitled to a refund for a defective product if they wished to return 45 days from the date of purchase or shipment. This is the second time Fitbit has been criticized by the ACCC, according to very similar allegations against the wearable manufacturer in 2018 (opens in new tab).
“Fitbit has again come to the attention of the ACCC for allegedly misleading consumers about their consumer warranty rights,” ACCC President Gina Cass-Gottlieb said in a statement. behavior is serious and that manufacturers should have processes in place to ensure compliance with Australian consumer law.”
When asked for comment, a Fitbit spokesperson told TechRadar Australia, “Fitbit will review the ACCC’s allegations and have no further comments to share at this time.”
Google could not be reached for comment at the time of publication.
Analysis: respecting your rights
Under Australian consumer law, a customer’s rights in relation to a defective product are not limited by any period of time, either from the date of purchase or otherwise. The law further states that companies and manufacturers that sell a product with a major problem, or that develops a major problem, must offer Aussie consumers either a refund or an offer of replacement.
A deduction from a refund made based on how long a consumer has had a product before it develops a major problem is also not allowed under Australian consumer law.
Fitbit’s new stoush with the Australian watchdog adds to a rough few months for the fitness tracker giant, which faced troubling issues plaguing its existing products as it continued to lose ground in the wearables market to the Apple Watch and saw fellow competitor Samsung is gaining significant momentum with its Galaxy Watch offering.
Meanwhile, Google’s other entry into the wearables space – the Google Pixel Watch – has encountered some problems of its own, despite an initially warm reception upon release. Given the importance of fitness tracking to wearables and Google’s ownership of the fitness tracking space pioneers (aka Fitbit), reports of ongoing problems (opens in new tab) with the Pixel Watch tracking calories burned, the tech giant would be concerned. Poor battery life has also been a constant complaint since the release of the Pixel Watch, an issue that its primary competitor the Apple Watch faces similarly when compared to less feature-less wearables like those in the Fitbit range. Likewise, user reception pointing out how poorly the Pixel Watch manages to differentiate itself from competitors or demonstrate any advantage has led to significant disappointment given the hype prior to the watch’s release.
While the aforementioned issues are not covered by consumer law, this legal battle could be a cause for concern and hopefully an incentive for Google to improve its entry into the wearables market, with Fitbit’s ability to comply with consumer law likely to be one of those those areas that are now high on the agenda.
The ACCC is seeking fines, injunctions, a compliance program and other injunctions against Fitbit, with adjustments expected to be made for future lawsuits since Fitbit is based in the United States.