A German Mattress brand has been ordered to pay $15m in penalties after the Federal Court found it made false or misleading representations about sale prices on mattresses, bed frames, pillows and accessories.
© Andrey Popov | Dreamstime
The penalties were split equally, with Emma Sleep Pty Ltd and Emma Sleep Southeast Asia Inc each ordered to pay $7.5m.
The case centred on online promotions between 15 June 2020 and 27 March 2023, where all 74 products were advertised with higher "strikethrough" prices alongside discount claims such as "50% OFF" or large savings statements.
According to the court, 58 products had never previously been sold at the higher reference price, while the remaining 16 had only rarely been sold at those levels.
The court also found misleading urgency tactics were used, including countdown timers that reset during campaigns and phrases such as "Ending Soon" despite discounts continuing afterwards.
Australian Competition and Consumer Commission commissioner Luke Woodward said the conduct gave consumers the false impression they were securing a bargain and may have pressured rushed purchasing decisions.
During the relevant period, the Emma Sleep website received more than 4.9 million visits, while social media promotions generated over 10 million views. The company also emailed more than 4 million consumers and sent SMS marketing messages to nearly 500,000 individuals.
Nearly every sale in the period included a savings representation, contributing to more than $134m in revenue and over 243,000 products sold.
The court also ordered corrective notices and a compliance programme. A separate UK case involving Emma Sleep is scheduled for June 2026.
Source: www.bigfurnituregroup.com
