Furniture and homewares retailer Koala Living has paid $56,340 in penalties and agreed to compensate consumers after the Australian Competition and Consumer Commission (ACCC) found it made false or misleading claims about consumer rights under the Australian Consumer Law, the agency has announced today (25 November).
The ACCC’s investigation revealed that Koala Living wrongly informed customers that remedies for faulty products were limited to a 72-hour window or the manufacturer’s warranty period, and that the company could decide the type of remedy offered. It also claimed delivery charges were non-refundable, contrary to consumer rights.
As part of a court-enforceable undertaking, Koala Living will compensate affected customers with 20% of the purchase price in addition to any legal remedies for faulty goods. The retailer has removed the misleading claims from its website, committed to improving staff training, and pledged to review its complaints-handling policies.
ACCC Commissioner Liza Carver emphasized that consumer guarantees are automatic and often extend beyond warranties. “Consumers can seek a repair, refund, or replacement for faulty goods. For major issues, the refund should cover the full amount paid,” she said.
The ACCC continues to monitor businesses for compliance with consumer guarantee laws and encourages consumers to report concerns. Further details on Koala Living’s compensation program are available on the company’s website.
