Australian Competition and Consumer Commission v FitBit LLC [2023] FCA 1535

Australian Competition and Consumer Commission v FitBit LLC [2023] FCA 1535

FitBit LLC, through its customer service representatives, made false or misleading representations and engaged in misleading or deceptive conduct regarding the existence and limitations on consumer rights under the Australian Consumer Law by asserting those rights were confined to the company's own warranty and return periods, contrary to ss 18 and 29(1)(m) of the ACL. The agreed pecuniary penalty of $11,000,000 and compliance and costs orders are appropriate and within the proper range to achieve deterrence, promote compliance, and reflect the seriousness of the contraventions.

Parties
Applicant: Australian Competition and Consumer Commission; Respondent: FitBit LLC
Jurisdiction
Australia
Judgment Date
12 December 2023
Procedural Posture
Civil Penalty Proceeding / Judgment After Agreement on Facts and Penalty
Outcome
Orders as proposed by the parties, including penalty, compliance measures, and costs contribution granted.
Legal Topics
False or Misleading Representations, Misleading or Deceptive Conduct, Pecuniary Penalties, Compliance Programs, Consumer Guarantees
Consumer Law Regulator and Consumer Protection False or Misleading Representations Misleading or Deceptive Conduct Pecuniary Penalties Compliance Programs Consumer Guarantees

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Parties

Australian Competition and Consumer Commission

Applicant

FitBit LLC

Respondent

Procedural Posture

Civil Penalty Proceeding / Judgment After Agreement on Facts and Penalty

Legal Issues

  1. 1 Whether FitBit LLC engaged in misleading or deceptive conduct in contravention of s 18 of the Australian Consumer Law
  2. 2 Whether FitBit LLC made false or misleading representations concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy, in contravention of s 29(1)(m) of the Australian Consumer Law
  3. 3 Appropriate penalty and other orders for contraventions admitted

Ratio Decidendi

FitBit LLC, through its customer service representatives, made false or misleading representations and engaged in misleading or deceptive conduct regarding the existence and limitations on consumer rights under the Australian Consumer Law by asserting those rights were confined to the company's own warranty and return periods, contrary to ss 18 and 29(1)(m) of the ACL. The agreed pecuniary penalty of $11,000,000 and compliance and costs orders are appropriate and within the proper range to achieve deterrence, promote compliance, and reflect the seriousness of the contraventions.

Court Disposition

Orders as proposed by the parties, including penalty, compliance measures, and costs contribution granted.

Orders

  • Declarations of contraventions of ss 18 and 29(1)(m) of the Australian Consumer Law
  • FitBit LLC to pay to the Commonwealth a pecuniary penalty of $11,000,000 within 45 days