29 March, 2024
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Fashion giant fined (again) over dodgy face mask claims

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One of Australia’s largest fashion conglomerates has been handed a $266,000 fine for misleading claims about face masks and hot water bottles during COVID.

Mosaic Brands – owner of Katies, Millers, Rivers, Noni B, Rockmans, W.Lane and Autograph – has paid the fines after an investigation by the consumer watchdog.

It’s the second time in as many years the retail giant has faced such penalties, despite it signing a court-enforceable undertaking promising to clean up its act.

The Australian Competition and Consumer Commission alleged that the company falsely claimed last August that KN95 face masks sold by Autograph were approved by US and European authorities or standards (the FDA and CE).

It also said Katies had claimed its McGloin-branded hot water bottles were “ACCC approved”, despite the fact that the regulator does not endorse products.

“We were very concerned about the type of representations being made by Mosaic Brands,” ACCC Commissioner Liza Carver said in a statement on Thursday.

“Making false representations about the approval or endorsement of a product by any government authority misleads consumers and is likely to erode public trust in government authorities and certification marks.”

Its not the first time Mosaic has been slapped with penalties for misleading claims about health products during COVID. It was earlier fined $630,000 for making false statements about hand sanitiser and kids face masks sold in early 2020.

At the time, Mosaic signed a three-year enforceable undertaking with the ACCC, which included implementing a “consumer law compliance program” and saying it would “properly substantiate” claims with respect to “health essentials products”.

The ACCC did not immediately comment on whether the latest fines mean this agreement was breached, even though the conduct occurred months after the undertaking was signed.

Mosaic, which runs about 1100 brick-and-mortar fashion stores Australia-wide, posted $619 million in sales across its group for the 2022 financial year.

The fines issued by the ACCC since 2021 equate to 0.14 per cent of these sales.

Mosaic Brands and the ACCC have been contacted for further comment.

The post Fashion giant fined (again) over dodgy face mask claims appeared first on The New Daily.

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