Mattress supplier in Federal Court after claims of ‘unethical marketing practices’
Just days after mattress retailer Sleeping Duck took aim at competitor Emma Sleep for using deceptive marketing practices to draw customers, the ACCC has agreed, instituted proceedings in the Federal Court.
The consumer watchdog is alleging Emma Sleep used false and misleading representations in the advertising of its mattresses, bed frames, pillows and accessories.
It is alleged that Emma Sleep “misrepresented savings consumers could make by purchasing its products and that particular sales campaigns were limited in time, when this was not the case.”
The ACCC alleges that between “at least 15 June 2020 and 27 March 2023,” the company advertised products showing a previous, higher price with a ‘strikethrough’ percentage or dollar figure discount. The products were “never, or almost never” sold at the higher price.
“We allege Emma Sleep enticed consumers to buy its products by misleading them about the discount or savings they would get, and by creating an artificial sense of urgency about the availability of its discounted pricing,” ACCC deputy chair Catriona Lowe said.
“Consumers may have been deprived of genuine and informed choice, and Emma Sleep may have unfairly gained a competitive advantage over other suppliers.
“False advertising practices are designed to indicate to the consumer that something is a good deal or bargain, when it is not,.
On top of this, the ACCC alleges that Emma Sleep misled consumers by “indicating its advertised prices were part of a limited sales campaign by placing countdown timers on its website” which simply restarted when ticking down.
“Misleading consumers by indicating a price is a limited time offer, or suggesting they are getting a discount, or saving money, when this is not the case is unlawful. It is designed to get consumers to make a purchase based on false information,” Lowe said.
The ACCC is seeking declarations, injunctions, penalties, consumer redress, costs and other orders.
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