A mattress supplier has admitted to misleading consumers by advertising inflated discounts and false urgency around sale prices for its products in the Australian market.
© Pattanaphong Khuankaew | Dreamstime
The Federal Court found that between June 2020 and March 2023, 74 items were advertised with a "strikethrough" price and promotional phrases such as "50% OFF" or "Save as much as $3,531". However, 58 of these items had never been sold at the higher reference price, while the remaining 16 had only rarely been offered at those prices.
The company in question, Emma Sleep Pty Ltd, and its related entity Bettzeit Southeast Asia Inc., were identified as having engaged in this conduct. They also used countdown timers and limited-time claims to create a false sense of urgency, despite products remaining available at the same discounts after the timers expired.
The Australian Competition & Consumer Commission (ACCC) said such practices mislead consumers and distort fair competition. The ACCC is pursuing penalties and other court orders. Allegations against parent company Emma Sleep GmbH were dismissed.
A similar investigation by the UK's Competition and Markets Authority (CMA) was launched in October 2024 regarding the brand's online sales practices.
Source: www.bigfurnituregroup.com