The Australian Competition and Consumer Commission said in a statement that it had accepted a court-enforceable undertaking from Fitbit to amend the information it provided.
The competition watchdog said from November 2016 to March 2017, Fitbit had told customers that the warranty it provided against faulty products was only for a year.
Fitbit also told customers that faulty products would be replaced only for the remainder of a calendar year or 30 days, whichever was longer.
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“Fitbit has acknowledged that it may have breached the law by misrepresenting what customers were entitled to for faulty products,” ACCC commissioner Sarah Court said.
“If a business offers its own limited express warranty, they must make it clear that the warranty is in addition to the remedies available under the Australian Consumer Law consumer guarantees, not instead of them.
“The Australian Consumer Law provides automatic rights that cannot be excluded, restricted or modified. If goods you purchase fail to meet a consumer guarantee, you are entitled to remedies which include repair, replacement or refund depending on the circumstances.”
The watchdog said the company had co-operated with its investigation and extended its express manufacturer’s warranty from one year to two years for Australian consumers.
Apart from this, Fitbit has agreed to provided contact details on its website for those looking to rectify problems with faulty products, to train its staff about consumer rights, and to amend the terms of its premium service to ensure customers are informed in advance about the renewal of fees for the service.
In a statement, Fitbit said: "The quality of Fitbit products and customer satisfaction are our top priorities. We are the leading global wearables brand and hundreds of thousands of Australians enjoy our products every day.
"We are proud of our high standard of customer service and work to ensure that customer complaints are resolved quickly and to the utmost satisfaction of our customers.
"Fitbit has worked closely with the ACCC and voluntarily increased our warranty period in Australia from one year to a minimum of two years, giving our customers even greater peace of mind. If consumers have any questions or concerns, they can contact us at help.fitbit.com."