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ACCC wins world first case against e-cigarette marketing claims

In what is believed to be a world first, the consumer watchdog has won a federal court case against three e-cigarette online retailers for making misleading claims about the safety of its products.

The Australian Competition and Consumer Commission launched the action against The Joystick Company Pty Ltd, Social-Lites Pty Ltd and Elusion Australia Limited (in liquidation) alleging they had made false and misleading claims about the presence of carcinogens in e-cigarettes.

In online marketing each of the companies claimed their products did not contain harmful carcinogens and toxins.

Delia Rickard, acting chair of the ACCC, said the claims meant consumers were not being made fully aware of the health dangers associated with the products.

“Consumers were led to believe by this conduct that when using these e-cigarette products, they would not be exposed to the harmful chemicals found in ordinary cigarettes,” Rickard said.

“In fact, they were exposed to the same chemicals, including a known carcinogen that has no safe level of exposure.”

“Businesses must ensure that they provide accurate information to customers, and have a reasonable basis for making any representations. This is particularly important for products that may cause harm to the health of consumers.”

The court ordered Joystick pay a penalty of $50,000 and its director pay $10,000, Social-Lites pay a a penalty of $50,000 and its CEO a fine of $10,000 and Elusion pay $40,0000 and its director a penalty of $15,000.

Three years ago after the US Food and Drug Administration announced it would not impose restrictions on advertising e-cigarettes, marketers of the product in Australia said they were confident they would be a clear to promote their products.

After the Federal court ruling was handed down the ACCC has written to more than 30 Australian e-cigarette suppliers reminding them of their obligations under Australian consumer law.

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