Pain Free Aussies and Modern Aussies parent caught breaching consumer laws
HSK United Pty Ltd, which operates the Pain Free Aussies and Modern Aussies websites, has been fined $79,200 for allegedly misleading pricing and returns policy.
The ACCC previously investigated HSK following consumer complaints. The probe found that the company advertised products on both its websites with strikethrough pricing, while certain items had not been sold at the higher ‘strikethrough’ price since at least January 1 last year.
The regulator believed consumers were likely misled into believing they were receiving a genuine discount.
“Sales and claimed savings can tempt consumers to buy products they may not otherwise purchase,” said ACCC commissioner Luke Woodward. “These types of misleading claims also disadvantage competitors that are making genuine claims about the prices of their products.”
In addition, the ACCC alleged that HSK made misleading statements about its returns policy on the two websites.
The policy stated that clearance items and items purchased with store credits were non-refundable, when in fact the consumer guarantees in the Australian Consumer Law provide for refunds in certain situations where goods are faulty.
The ACCC was concerned that consumers would think they were not entitled to refunds for such items in any circumstances.
“These statements could have discouraged consumers from seeking a refund that they were entitled to because the product was faulty,” Woodward said.
Aside from paying the penalties, the company has improved its internal compliance processes and made changes to both websites, including updating its returns policies.
Melbourne-based HSK owns Pain Free Aussies, which sells health and therapeutic products online, and Modern Aussies, a website selling personal care and household products.
Earlier this month, Ugg footwear retailer Christofi Investments was fined $39,600 for making misleading pricing claims about the products sold on its websites.
Comment Manually
You must be logged in to post a comment.
No comments