JB Hi-Fi said that its subsidiary, The Good Guys, will recognise a one‑off expense of $13.7 million in its FY25 results as it settles proceedings brought by the Australian Competition and Consumer Commission (ACCC) over its StoreCash and credit promotions.
Moreover, the company will contribute $200,000 towards the ACCC’s legal costs.
The agreement also includes a remediation program for certain customers, the cost of which has been accounted for in prior periods and will not affect the FY25 results.
The ACCC launched proceedings in the Federal Court in July 2024, alleging that The Good Guys made false or misleading representations about its StoreCash and store credit offers and failed to provide credits to eligible customers.
Between July 2019 and August 2023, The Good Guys ran 116 promotions that promised customers a store credit if they spent a certain amount online or in‑store.
The ACCC alleged that The Good Guys failed to clearly communicate an additional requirement that customers had to opt in to marketing communications to qualify for the credits.
The ACCC also claimed that many credits expired within seven to 10 days, despite representations that the credits would be valid for a reasonable period.
According to ACCC Chair Gina Cass‑Gottlieb, “We allege that the conditions for consumers to receive a store credit as part of The Good Guys’ promotions were not communicated adequately in The Good Guys’ marketing materials.”
“We also understand that, for the majority of promotions, the store credit being offered expired within a very short period of time of ten days or less, which many consumers were unaware of.”
The ACCC further alleged that The Good Guys failed to provide credits to thousands of eligible customers within the specified or a reasonable time.
“Even where consumers met the conditions, we allege that The Good Guys did not provide a store credit at all to many eligible consumers,” Cass‑Gottlieb said.
In a statement, The Good Guys said it takes its compliance obligations seriously and has worked cooperatively with the ACCC throughout the proceedings.
“The Good Guys has always sought to provide value and benefits to its customers and has always prided itself on its high levels of trust with consumers,” the company said.
The proposed penalty is still subject to the Federal Court’s approval.