FitBit fined $11m for consumer guarantee claims

The news: US Fitness technology company FitBit has been ordered to pay an $11 million penalty for misrepresenting consumer rights to refunds or replacements.

The numbers: FitBit admitted to making false, misleading or deceptive representations to 58 consumers after they claimed their devices were faulty. The ACCC, which brought the action to the Federal Court, said it was the second time FitBit caught its attention over guarantee rights.

The context: Nearly 40 customers who reported problems with replacement products were told they were ineligible for replacement or refund, because the original faulty product's warranty had expired. In a further 18 cases, FitBit staff had told consumers their right to a refund expired 45 days after purchase.

What they said: "In this case, consumers may have incurred additional expense and inconvenience paying for repairs or replacement products because they were told false and misleading information about their consumer guarantee rights," Acting ACCC Chair Catriona Lowe said in a statement.