ACCC Takes Legal Action Against Owner of Noni B, Katies, and Rockmans Clothing Brands
The Australian Competition and Consumer Commission (ACCC) has recently taken enforcement action against Mosaic Brands Ltd, the owner of popular clothing brands including Noni B, Katies, and Rockmans. The action comes after numerous complaints from customers regarding delayed deliveries and issues with refunds on faulty goods.
The ACCC claims that for a seven-month period, 26 percent of deliveries took longer than 20 days to arrive at customers’ doors. This has caused frustration and inconvenience for consumers, especially those who purchased items for special occasions, such as Christmas, based on the advertised delivery times which were not met. Mosaic allegedly accepted payment for goods that were delayed or not delivered at all, leading to the legal action by the ACCC.
Between September 2021 and March 2022, Mosaic advertised that parcels would arrive between two and 17 business days. However, the ACCC claims that 26 percent of deliveries arrived outside of this timeframe. Mosaic disputes these claims and argues that their fulfillment rates have been over the government-mandated benchmark for Australia Post for the past two years. They believe the ACCC’s claim is flawed and will vigorously defend themselves in court.
In addition to the delayed deliveries, Mosaic also faces allegations regarding consumer rights about refunds on faulty goods. The ACCC alleges that between September 2021 and October 2022, Mosaic wrongly advised customers about their entitlement to a refund within six months if an item was faulty. The law actually states that there is no specific expiry date for such entitlements. ACCC Commissioner Liza Carver emphasized that consumers have the right to a free repair, refund, or replacement if a product is faulty or does not meet its description.
This is not the first time Mosaic Brands has faced regulatory issues. In 2021 and 2022, they paid $630,000 in penalties for violations of consumer law. These violations included advertising hand sanitizers with incorrect information on their packaging and selling masks that were not approved by the World Health Organization. In 2022, Mosaic received two infringement notices for making false or misleading representations on their website, katies.com.au. One notice concerned a KN95 face mask falsely claiming approval from the U.S. Food and Drug Administration, while the other involved a hot water bottle falsely advertised as “ACCC approved.”
In addition to the infringement notices, the ACCC is now seeking an injunction to prevent Mosaic from promoting certain products. The legal action taken by the ACCC highlights the importance of businesses adhering to consumer rights and delivering goods within a reasonable timeframe. Consumers should be aware of their rights and not hesitate to seek redress if they encounter issues with their purchases.
It remains to be seen how this legal battle between Mosaic Brands and the ACCC will unfold. However, it serves as a reminder to both retailers and consumers alike that transparency, accuracy, and timely delivery are essential components of a successful and trustworthy business.
