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Atomic MPC > News > Build > Peripherals > MSY heads to Federal Court over Consumer Warranty Rights

MSY heads to Federal Court over Consumer Warranty Rights

We've a small, but interesting, update on the whole MSY/ACCC warranty issue. But there's more court time to come...

After being taken to Federal Court for various dodgy practices by the ACCC, MSY and their related companies have given undertakings to the court that they will ‘not make false or misleading representations regarding the statutory warranty rights of consumers’ in future.

The retailer is known among the tech community for their low prices and less-than-stellar service, and the ACCC didn’t hold back earlier this month, alleging a number of warranty rights violations in advertising, on-line and in-store – all in breach of the Trade Practices Act. The ACC is after ‘injunctions, civil penalties, corrective advertising, costs’ and, for the longer term, implementation of a strict ‘trade practices compliance program’; which would be good news for future customers, at least.

The case goes back to the courts in Early December, and we’ll be keeping our eyes on the outcome.

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31 Comments

jdog Nov 19, 2010 2:41 PM	all i can say is untill this is over im not using MSY...Umart or my local store from now on....
Bundy 2.0 Nov 19, 2010 2:43 PM	I hope the outcome doesn't impact too heavily on MSY's ability to maintain their low prices. For the tech savy or informed customers they really are one of the best parts shops out there.
Bundy 2.0 Nov 19, 2010 2:44 PM	Can I ask why jdog? My advice would be to still look for the best deal for yourself.
2SHY Nov 19, 2010 2:46 PM	True. Not worth the hassle to be honest. Using mainly online retailers these days.
jdog Nov 19, 2010 2:56 PM	yes,they have cheap prices but if this case turns out that they have to close down or change things then if your still under warranty if could be bad...cheap and chearful is good..but not if it bits you in the ass..
Nich... Nov 19, 2010 3:11 PM	Without wanting to sound like I'm supporting what MSY are doing with misrepresenting the statutory warranties to customers, the whole thing sounds a little like a beatup. "Less-than-stellar-service" applies to 99% of the industry, etc.
panto Nov 19, 2010 3:13 PM	If it has manufacturer warranty I'm happy to bear that risk in return for their lower prices. Retailers like Harvey with their over inflated prices and arrogant salesmen won't get a cent from me.
AMD AKIMBO Nov 19, 2010 4:19 PM	i dont care i will still shop there. its the difference between making $70 off a build or $200 i will take the $200 option. if you cant get warranty you charge for the part. this is for customers not for my personal stuff cos msy would rarely have the parts i want anyway.
codecreeper Nov 19, 2010 4:58 PM	i think there is domino effect here in regards to other retailers too. Will they be affected too ? and why only MSY?
AMD AKIMBO Nov 19, 2010 5:38 PM	msy must be at first on the hit list because of customer complaints and competition complaining and putting in false complaints because they cant match their prices, dont think this doesnt happen! more will follow.
mohawk Nov 19, 2010 7:34 PM	I suggest people should read the acts pertaining to the case and instead of making a mountain out of a molehill. The ACCC alleges that MSY and each of its related companies have breached sections 52 and 53(g) of the trade practices act 1974. There are so many retailers out there, not just in the computer hardware sector, who breach the aforementioned sections every day and get away with it. One straight off the top of my head is a certain store in Carlingford, Sydney. I have been told and have heard others being told that on certain products you will have to go straight to the manufacturer for any warranty claims and not to contact the certain store in Carlingford. This is totally against the law and breaches the aforementioned sections. Like AMD AKIMBO is pointing at, it seems that they are just the first on the hit and certainly will not be the last. @ jdog, this case will not cause them to close down at. It just means that they will have to comply with the act.
jdog Nov 19, 2010 9:00 PM	well i hope they do....
orcone Nov 19, 2010 10:14 PM	Akimbo, I take it you build computers and sell them for a profit. Why not get your parts directly from a distributor? I routinely purchase equipment and components for considerably less than MSY offer them for.
alexdtree Nov 19, 2010 10:45 PM	Glad this is happening MSY has terrible customer service, i bought my PC from there and it runs a treat, but the service there is terrible and have a friend who msy attempted to screw over but thankfully his lawyer father got them.
andhey Nov 20, 2010 12:06 AM	i dont mind msy's service, no unnecessary chit chat just order what you need pick it up and go home.
mohawk Nov 20, 2010 1:16 AM	@alexdtree. Terrible customer service. Let me see. You wait in line to be served. When it is your turn you order what you want and if they have it you buy it. How is that terrible? They provide the bare minimum. It is not great but it is far from terrible. @orcone. I know some guys buy certain parts from MSY because the distros they use can't even match MSY's prices.
phill360 Nov 20, 2010 8:47 AM	This company is a joke. They should be shutdown asap. Have little to no advice, have no idea what they are selling you and warranty is very dodgey. Honestly guys in most cases there prices aren't that much better than Centrecom and guess what they have great service
AMD AKIMBO Nov 20, 2010 8:50 AM	true my bosses buy price from most of his distributers isnt as low as msy's sell price. everytime i ask him to price match something from msy he looses money but he does it for me.
GeekyTalon Nov 20, 2010 9:59 AM	But is there any other store "like" MSY? I cant think of any other one that offers such low prices and is like a warehouse with bad customer service.
Splinter277 Nov 20, 2010 10:19 AM	I usually use Umart where possible. Close to where I live, and the option to pick up from the store. Consistently the cheapest in Brisbane. The other option near me is Megabuy, which is cheap enough but always incurs a $20 delivery fee.
GhostFaceKilla Nov 20, 2010 5:25 PM	Good luck MSY. I have had reason to shop ther over the past 2 weeks and I have noticed an attitude shift toward customers.
osama_bin_athlon Nov 20, 2010 6:15 PM	I like MSY. never had a problem with them, warranties, refunds etc I've found them to be hell-quick getting stuff like that resolved. maybe ppl would like HN's better?
tantryl Nov 22, 2010 12:26 PM	Yeah, as mohawk says the thing they're being taken to task over is saying that things only have a 1 year warranty and after that you have to go to the manufacturer. Same thing mwave were tagged on, same thing dozens of retailers do.
SpaceCadet Nov 22, 2010 8:07 PM	Ban this "ffdjjhghgfhg" spammer. That's at least 4 news items he's posted in.
Polish Nov 23, 2010 10:39 AM	@jdog if anything all the media attention they get from this will make them more popular - everyone's talking about their low prices and how... they're going to start complying with the act! I hope Atomic get recognised for their contribution. The court cases may be an expensive form of advertising though. They would do better to put that money towards a better website.
Squidy Nov 24, 2010 4:43 PM	I recall buying some parts from them a year or so ago for someone. Video card was DOA and they told me no warranty and I'd have to go to the manufacturer for the warranty... despite going back in there a day after I bought it. So yeah, I can see why they're being taken to task over it, and if they're still doing that shit I hope they get their arse flogged.
wayke Nov 24, 2010 11:34 PM	Someone should Sue Umart for Dodgy Support and Warrantys, But First GAMEDUDE AT LOGAN Talk about Dodgey its like they collected all the menatally challenged from some work for the dole scheme put them in a giant box shook it up and TADAH GAMEDUDE THE RETARD HALL OF FAME Terrible Service LONG waits your the only one in the store takes 40 mins for one of their brains to function when that happens you get some bent box that sliglhtly looks like what you ordered your so annoyed that you take it home only to find OMG they licked the CPU SOCKET ON THE MOBO now thats screwed you take it back you wait 2 - 14 days in the returns office OMG then you wait 6 -7 years for a Phone call saying we cant find anything wrong with it not realising they picked up a working componet from a kettle and tested it tell you your motherboard does boil sir we filled it with water and made a tea and then they send you back that broken board with their dribble in it HAHRAY you repeat the process 2 more time telling them you want a refund they say no you get into giant argument with some guy wearing a metallica shirt he storms off some guy in a different Trippy looking informal shirt questions you about the item repeating the entire process again. THATS GAMEDUDE CRAP
czerney Nov 28, 2010 11:40 PM	If they have the item I want and the right price I'll buy. Way I see it, is buyer beware.. if warranty is a big concern buy off a company you trust. I bought couple parts from msy recently. Quick service and in stock. I'll be back.
ihateH Dec 16, 2010 11:15 PM	Finally MSY has got what it deserve. I was one of those fanbois until when they gave me the third cheat then that was the moment for me to quit with definitely. Yes cheap price (not always) but 99% you won't find what you wanted to after you spent time putting all hardware parts together and making a quote! Also very low quality parts, I do believe they intentionally purchase it so to gain more profit. As per the many who still clap for MSY, well guys you're aware that you buy "rubbish" but who cares you will give to your customer or in the best case you'll sell to your best friend! As per the front desk guys.... well they're very very dodgy and rude, you've the clear feeling that they think you're stupid, personal experience. I do believe that after this commitment to ACCC MSY won't be able to maintain the same price list, but yet they'll still purchase the rubbish for their tricky and smart computer techs customers.
ihateH Dec 16, 2010 11:30 PM	@mohawk: you don't even need to wait your turn anymore. Last two times I went there (last and no more) there were only 2-3 more clients which means people have became aware of what the rubbish bin is there. I still remember when MSY had 20 and more clients waiting their turn, but no more!
Pharkmeh Feb 18, 2011 1:28 PM	sigh - I am another being screwed over by MSY having purchased an ASUS notebook in oct 2010. It had all sorts of operation problems over the next month and so went to get it replaced only to be told I have to go to ASUS for the warranty repair. Ignorant to my warranty rights I did so and after a month is was returned with the hard drive replaced. The unit was still failing and shut down everytime the external power cord was removed and so contact MSY Brendale again only to be told ASUS has a repair twice policy before refund or replacement. (Since diagnosed powr failure and apparently repaired by ASUS again) Having paid around $2500 for a high end machine I was insistent that I did not want it repaired again, that even the 2 courier trips across town cant be doing it any good and so want it replaced or a refund. I had also researched MSY warranty & other issues before contacting ACCC who were very interested to hear MSY were continuing to flout there warranty obligations and promises to the Federal court they would not breach again. Even the MSY web page has a refund policy link (probably due to ACCC court action ) detailing customers rights to refund under the Trade Practices for defective goods etc etc etc.. Neither recent action or the fact I have been a good customer of MSY spending several thousands of dollars over recent months would convince them to give me a replacement or a refund. I was prepared to accept a 1 off repair but not two since I spent so much on this machine so that it would last me. In short they would rather I accept what is now a very 2nd hand machine rather than their comapny risk not obtaining a credit from ASUS. Even the ASUS service manager called me to tell me just because I bought a high end machine I was being unreasonable to expect it wouldnt have any issues... like WTF ! Anywhoo , as I have to go through the Office of Fair trading to get any satisfaction I am left gob smacked that they are making me jump through so many hoops just to achieve what is the right thing to do. Clearly they think they are above the ACCC and customer loyalty has NO value. Regardless of outcome I would like the Federal court to know that MSY is continuing to breach warranty agreements and advice in respect of the same, any clues how I would do this ??? cheers Phark

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