JB Hi-Fi cops $14m hit as The Good Guys settles ACCC’s alleged false credit offers case
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The news: Consumer electronics group JB Hi-Fi said that its appliances retailer The Good Guys has reached an agreement with the Australian Competition and Consumer Commission (ACCC) to resolve court proceedings relating to misleading store credit promotions.
The numbers: The Good Guys and the ACCC will make joint submissions to the Federal Court for approval of the agreed resolution, including orders requiring The Good Guys to pay a pecuniary penalty of $13.5 million and contribute $200,000 to the ACCC's legal costs.
JB Hi-Fi — which bought The Good Guys in 2016 — said a one-off expense of $13.7 million will be recognised in the group's full-year statutory result.
The context: JB Hi-Fi has also agreed to conduct a remediation program for certain customers. It said the program has previously been accounted for and will not impact its full-year result.
In July last year, the ACCC began the proceedings in the Federal Court, alleging that The Good Guys made false or misleading representations about their store credit and 'StoreCash' promotions, and failed to provide store credit to eligible consumers.
The source: ASX
