Appliance retail juggernaut The Good Guys has been hit with a $13.5 million penalty from the Federal Court after being found to have misled over 20,000 consumers and failing to provide store credits.

Between 2019 and 2023, the Aussie retail giant offered 116 promotions where store credit was offered to customers if they spent a minimum amount, purchased a specific brand or product, or used a particular payment method. The credits ranged from $10 to $1000.

However, The Good Guys was forced to admit the advertisements for the credits did not adequately show the expiry period of the store credit, with some being as short as seven days.

The company also admitted they failed to provide about 21,500 customers with their entitled store credit within the time frame required.

“The chance to earn store credit may have encouraged some consumers to make a purchase at The Good Guys they otherwise may not have made or to choose this retailer over others”, ACCC Chair Gina Cass-Gottlieb said.

“We were concerned some of those consumers may not have done so had they been aware of all the conditions.”

In addition to the fine, The Good Guys is also required to provide redress to certain consumers who participated in store credit promotions by providing a store credit with a longer expiry period.

The Good Guys has cooperated with the ACCC and is remediating consumers who did not receive their store credit after failing to meet the conditions.

“Businesses that use promotional programs to attract consumers and differentiate themselves from their competitors must ensure they provide any gifts or rebates to eligible consumers in the time period they said they would,” Cass-Gottlieb said. 

The Good Guys has been contacted for comment.