JB Hi-Fi Faces Lawsuit, Could Potentially Cost Millions

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By Published On: December 12, 20230 Comments

JB Hi-Fi has been handed a class action lawsuit for selling extended warranties that are already covered by Australian Consumer Law.

Australian home and electronics retailer JB Hi-Fi is facing a class action lawsuit for monetising and selling extended warranties that are allegedly already a consumer right and free under the Australian Consumer Law.

“What we’re alleging in the class action is that JB Hi-Fi has been selling extended warranties that essentially offer Australian consumers the same thing as what they already get for free under the Australian Consumer Law,” said Miranda Nagy, principal lawyer for Maurice Blackburn.

The law firm is seeking compensation for everyone who bought an extended warranty from JB H-Fi between 1 January 2011 and 8 December 2023. Ms Nagy estimated the class action could cost the retailer millions, covering thousands of customers who had paid millions of dollars for extended warranties over the years. 

“JB Hi-Fi’s warranties never lasted more than three to six years after the date of purchase,” she said.”So when you think about buying, for example, a $2,000 fridge, you’re expecting a fridge like that … to have a much longer life than six years.
“Australian Consumer Law remedies were likely to last longer in most cases.”

The lawsuit alleges that in offering extended warranties, JB Hi-Fi broke the law by using misleading or deceptive conduct.

In an announcement posted to the ASX, JB Hi-Fi Chairman Stephan Goddard confirmed that the business ​​received a Writ and Statement of Claim from Maurice Blackburn Lawyers in relation to a class action relating to the sale of extended warranties. The proceedings seek compensation for loss or damage of an unquantified amount, interest and costs for the lead plaintiff and group members. JB Hi-Fi has said it takes compliance with its legal obligations very seriously and considers that it has complied with relevant laws at all times and intends to vigorously defend the proceedings. 

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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