The Federal Court has ordered The Good Guys Discount Warehouses to pay $13.5 million in penalties after the retailer admitted to misleading conduct in more than one hundred promotional campaigns offering store credit.
Between July 2019 and August 2023, the company ran 116 promotions where customers could earn store credit, sometimes branded as “StoreCash”, when they spent a minimum amount, purchased specific products or used certain payment methods. Credits ranged from $10 to $1000, yet the court found the fine print was not made clear to shoppers.
In many cases, customers were not told their credit would expire in as little as seven to ten days, or that eligibility was dependent on staying subscribed to The Good Guys’ marketing emails. Around 21,500 customers also missed out on promised credit altogether.
“Promotional offers can influence purchasing behaviour, but businesses must be upfront about any conditions,” ACCC chair Gina Cass-Gottlieb said in a statement. “Key terms like expiry dates or eligibility requirements need to be clearly disclosed. Failing to do so risks court action and significant penalties.”
The Good Guys admitted liability, cooperated with the ACCC, and has already remediated customers who missed out on credits. The court also ordered the retailer to provide redress to certain consumers by reissuing store credit with longer expiry periods.
For industries like cleaning and facility services, where loyalty programs and promotional deals are increasingly common, the case underscores the importance of transparency and compliance. Businesses that use incentives to attract or retain customers must ensure all terms are communicated clearly and delivered as promised.
“This outcome is a reminder to any business offering rebates, credits or loyalty rewards,” Cass-Gottlieb added. “If you promise a benefit, you must provide it within the time frame you’ve committed to.”
The enforcement action aligns with the ACCC’s current priorities around misleading pricing practices across retail and service sectors.
