Sheepskin Seller Penalised for Alleged False or Misleading Representation
Thursday 5 May 2016 @ 11.10 a.m. | Legal Research | Trade & Commerce
According to an ACCC Media Release, Kingdom Groups International Pty Ltd (Kingdom) has paid a penalty of $10,800 following the issue of an infringement notice by the Australian Competition and Consumer Commission (ACCC).
Background
The ACCC issued the infringement notice because it had reasonable grounds to believe that Kingdom had breached the Australian Consumer Law (ACL) [the ACL is contained in Sch 2 to the Competition and Consumer Act 2010 (Cth)] by making a false or misleading representation on its website about the country of origin of its footwear branded “UGG® Aries Sheepskin Australia”.
Kingdom’s Aries Sheepskin website featured images of the Australian Made logo attached to Aries Sheepskin footwear, as well as statements that the footwear was “truly Australian made”, and manufactured in “Junee, Canberra, Australian Capital Territory”.
Breaches a Concern for the ACCC
The ACCC was concerned that the statements and images on the Aries Sheepskin website represented to consumers that the Aries Sheepskin footwear products were manufactured in Australia, when in fact they were made in China.
Commenting on this issue, the ACCC Deputy Chair Dr Michael Schaper said:
“The Australian Made logo is well recognised and relied upon by consumers. The ACCC was concerned that it had been used to give consumers the impression that a product was made in Australia, when it was not. Country of origin claims are a particularly valuable marketing tool for businesses, as many consumers place a premium on goods that are Australian made. In circumstances where consumers must rely on labels to identify where a product is made, it is particularly important that suppliers ensure that any country of origin claims they make are true.”
The Australian Made Campaign
The ACCC’s investigation commenced following a complaint from Australian Made Campaign Ltd that Kingdom was using the Australian Made logo on products on its website.
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the ACL. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
Australian Made Campaign Chief Executive, Ian Harrison said:
“Australia has an excellent reputation for producing quality products and produce, which makes us a target for copycat manufacturers and frauds. Consumers look for the Australian Made logo to identify genuine Aussie products, and Australian farmers and manufacturers rely on it to market their products, so it is of the utmost importance that we protect the integrity of the brand. We hope this sends a strong message to people that misuse of the logo will not be tolerated.”
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Sources:
Australian Made welcomes ACCC action against ugg boot importer making misleading claims – australianmade.com.au
Sheepskin footwear seller pays $10,800 penalty for alleged false or misleading ‘Australian made’ representation – ACCC Release MR 70/16
