Consumers

ACCC targets misleading organic claims

Dreamz Pty Ltd, trading as GAIA Skin Naturals (GAIA), has paid $37,800 in penalties for alleged false or misleading representations after the ACCC issued three infringement notices.

GAIA described its Natural Baby Bath & Body Wash, Baby Shampoo and Baby Moisturiser as “Pure ★ Natural ★ Organic”. However, these products contain two synthetic chemical preservatives: sodium hydroxyl methyl glycinate and phenoxyethanol.

Alinta Energy misled consumers on discounts

Alinta Energy (Alinta) has undertaken to compensate thousands of Victorians for making misleading electricity price comparisons which the ACCC considered were likely in breach of the Australian Consumer Law.

Between 9 December 2017 and 28 February 2018, Alinta’s advertisements compared increases in its competitors’ standing or undiscounted tariff rates to decreases in Alinta’s discounted tariff rates.

iPhone and iPad misrepresentations cost Apple Inc $9 million in penalties

The Federal Court ordered Apple Inc (Apple US) to pay $9 million in penalties for making false or misleading representations to customers with faulty iPhones and iPads about their rights under the Australian Consumer Law (ACL).

The ACCC took action against Apple US and Apple Pty Ltd (Apple Australia) following an investigation of complaints relating to ‘error 53’. This error disabled some iPhones and iPads after owners downloaded an update to Apple’s ‘iOS’ operating system.

Update report

The Northern Australia Insurance Inquiry Update Report was released on 8 June 2018. The report provides preliminary observations about northern Australian insurance markets drawn from our public consultation and information gathered from insurers, and an overview of the current focus of our inquiry.

Wisdom to remove unfair contract terms

The ACCC has accepted a court enforceable undertaking from home builder Wisdom Properties Group Pty Ltd (Wisdom) to remove contract terms contained in its standard home building agreements which are unfair under the Australian Consumer Law.

From October 2008, Wisdom’s Home Building Agreement contained non-disparagement clauses that allowed it to control or prevent any public statements such as online reviews, made by customers about its services.

Jenny Craig pays penalty for “10kg for $10” ads

Jenny Craig Weight Loss Centres Pty Ltd (Jenny Craig) has paid $37,800 in penalties following the ACCC issuing three infringement notices for alleged false or misleading representations in breach of the Australian Consumer Law.

From December 2017 to February 2018, Jenny Craig represented in television advertisements people could lose up to 10kg of weight for a $10 program fee, without adequately disclosing customers also had to purchase food at an additional cost.

Fitbit misled customers about faulty products

The ACCC has accepted a court enforceable undertaking from Fitbit (Australia) Pty Limited (Fitbit) to amend information they provide to customers about their consumer guarantee rights under the Australian Consumer Law (ACL).

From November 2016 to March 2017, Fitbit told customers that its warranty against faulty products was only available for one year. Fitbit also represented that faulty products would be only replaced for the remainder of the calendar year or 30 days, whichever was longer.