Tech giant Fitbit will have to pay an $11 million ($11.8 million NZD) fine in Australia after misleading consumers about smartwatches and fitness trackers that were not fit for purpose.
The Federal Court issued the penalty against the US firm on Tuesday after it admitted making false, misleading or deceptive claims to 58 customers between 2020 and 2022.
In several cases, Fitbit representatives claimed customers only had 45 days in which to return a faulty device.
The case is the second brought against Fitbit by the Australian Competition and Consumer Commission (ACCC) after it raised concerns about warranties offered by the company in 2018.
The ACCC launched its latest case against the billion-dollar firm, now owned by Google, in October last year, saying it had misled customers about their rights under Australian Consumer Law.
Acting ACCC chairwoman Catriona Lowe said all goods sold in Australia must be of acceptable quality and fit for purpose and retailers had to provide a repair, replacement or refund if this standard was not met.
"We took this action as a reminder to Fitbit and other businesses that they must honour their customers' consumer guarantee rights without restrictions and not mislead consumers about these rights," she said.
"Consumers may have incurred additional expense and inconvenience paying for repairs or replacement products because they were told false and misleading information."
As part of the case, Fitbit admitted its staff told 18 customers they...
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