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ACCC levies penalty on Gold Coast for false wool claim

07
Jan '12
Gold Coast Wool Pty Ltd has paid an infringement notice penalty of $6,600 to the Australian Competition and Consumer Commission for falsely claiming that its bedding products were composed of 100 per cent wool.

“Misrepresentations of this nature undermine consumer confidence and warrant action,” ACCC Chairman Rod Sims said.

It was alleged that between November 2010 and August 2011, Gold Coast Wool attached labels to its bedding products that contained the official Woolmark logo and stated that the products were made from “100% wool”.

Analytical testing of the bedding products showed that the contents of the products were not made from 100% wool and in fact consisted of a combination of polyester and wool.

The Australian Competition and Consumer Commission (ACCC) was concerned that the representations appeared to be targeted at foreign tourists who are willing to pay a premium price for products that they believe are genuinely made from 100 per cent Australian wool.

“Consumers should be able to trust the representations that manufacturers make on their products,” Mr Sims said.

“This matter highlights the need for businesses, no matter how small, to be careful when they are promoting their products and to ensure labelling does not represent a product to be something that it is not.”

The payment of an infringement notice penalty is not an admission of a contravention of the Australian Consumer Law as set out in the Competition and Consumer Act 2010. However, the ACCC can issue an infringement notice to a trader where it has reasonable grounds to believe it has contravened consumer protection laws.

The Australian Competition and Consumer Commission (ACCC)


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