Cotton On acknowledges error

NATIONAL: Multinational retailer Cotton On has admitted it may have misled consumers by incorrectly labelling some of its footwear products. The company, which operates 164 retail stores throughout Australia, acknowledged that it sold a Home Boots footwear product boasting a swing tag containing the word 'Lambskin'.

The manufacturer's label contained within the range, which was offered for sale between April and May, indicated the product was made entirely from synthetic materials.

The ACCC was concerned that the 'Lambskin' representation on the swing tag may have led consumers to believe that the footwear was made of lambskin when this was not the case.

When the issue was bought to Cotton On's attention by watchog group the Australian Competition and Consumer Commission (ACCC) , the company cooperated by removing the term 'Lambskin' from the labels on all the relevant Home Boot footwear.

It later acknowledged the lambskin claim may have misled consumers, and as a result  was likely to have contravened the consumer protection provisions of Trade Practices Act 1974. 

Cotton On Clothing has given the ACCC court-enforceable undertakings that it will not represent their products contain wool or sheep skin unless those products do in fact contain the represented materials, cause a corrective notice to be displayed at the main service counter of each  of its Australian retail outlets advising consumers of the incorrect 'Lambskin' labelling and offer a refund of the purchase price to all Cotton On customers who believe they have been misled.

ACCC Chairman Graeme Samuel said the ACCC would continue to monitor labelling of this nature to ensure it complied with the act.

"If consumers are seeking goods with certain characteristics they are naturally attracted to those goods over competing goods that do not appear to have such characteristics.  As such, the ACCC will not hesitate to take action against traders making such false claims," Samuel said.