Fitbit Fined $11 Million In Australia For Misleading Customers

Fitbit Inc., an American consumer electronics and fitness company, has been imposed with a hefty fine of $11 million by the Australian Competition and Consumer Commission (ACCC) for misleading customers. According to a report by ABC News, the company deceived numerous customers without providing them with a refund option for defective products, saying they were only authorized to return or repair products.

Acknowledging the irregularities, Fitbit said 18 customers were misled by them. The company denied refunds to 40 customers, citing warranty expiration. This is the second time the company has faced regulatory concerns regarding consumer guarantee rights.

According to the report, ACCC received numerous complaints between 2020 and 2022 citing irregularities with refund options. The customers alleged that they had not been exposed to refund options. Instead, they were only provided with returns, replacements for defective smartwatches, and fitness trackers.

ACCC chairwoman Catriona Lowe said that “we took this action as a reminder to Fitbit and other businesses that they must honor their customers” consumer guarantee rights without restrictions and not mislead consumers about these rights.” She also said that customers were compelled to bear additional expenses and inconvenience.

“We are pleased Fitbit admitted its misconduct, especially since this is the second time we have had to respond to a company in the Fitbit Group with concerns about representations involving consumer guarantee rights,” she said, according to the report.