Australia · Subscriptions and ecommerce
Miyagi proceeding puts cancellation terms and sales scripts under scrutiny
The ACCC has instituted proceedings alleging that Miyagi used unfair terms that prevented many customers cancelling health programs and made misleading statements about cancellation, refunds and staff affiliations. It also alleges the CEO was involved through approval of contract terms and sales scripts. These are allegations and have not been determined by the Court.
What this means
Understand the practical effect.
The ACCC has instituted proceedings alleging that Miyagi used unfair terms that prevented many customers cancelling health programs and made misleading statements about cancellation, refunds and staff affiliations. It also alleges the CEO was involved through approval of contract terms and sales scripts. These are allegations and have not been determined by the Court.
What to do
Turn the update into action.
Review cancellation and refund controls together with the sales journey. Customers should have a real opportunity to understand the commitment, claims about professional status must be accurate, and staff scripts and system outcomes must not override consumer rights.
- Give customers sufficient time and a practical opportunity to review price, duration, payment, cancellation and refund terms before agreement.
- Test whether cancellation and refund clauses create a significant imbalance, are reasonably necessary and may cause detriment if applied.
- Verify every statement about staff qualifications, professional status, affiliations and service inclusions before it appears in advertising or scripts.
- Align contracts, sales scripts, recordings, CRM workflows, customer-service decisions and complaint remediation, with accountable senior approval.
Official sources
Check the controlling material.
Practical support
Apply this update to your business.
Confirm the products, customer journeys, claims, suppliers or processes affected, then identify the evidence, ownership and timing needed for a defensible response.
Watchdog can assess the update against your circumstances and recommend the most useful next step.
Important information
Check the current position.
This update is general information, not legal advice. Laws, official guidance and proceedings can change. Check the current source and your specific facts before acting.