The Federal Court in Perth has fined an online ugg-boot trader for misleading conduct over bogus "Australian Made" claims.
The e-tailer, Marksun Australia was slapped with a penalty of $430,000 after an investigation by The Australian Competition and Consumer Commission (ACCC) revealed that Marksun was falsely claiming it ugg boots were made in Australia when they were actually made in China.
According to a statement by the ACCC this morning, Marksun promoted the Chinese-made ugg boots via a registered trade mark “Marksun Products Ugg Boots from Australia”, along with the statement “Made in Australia from Australia Wool”, silhouette images of wombats and kangaroos, images of the Australian flag and Sydney Opera House and the official green and gold 'Australian Made' Logo.
The $430,000 fine also included $100,000 for unauthorised use of the Australian Made logo – a move which was applauded by the Australian Made, Australian Grown Campaign (AMAG ).
AMAG Chief Executive Ian Harrison said the court win was a coup for consumers who had been misled by Marksun and for companies who were rightly registered to use the “Australian Made” logo.
“Justice Gilmour’s decision is a win for shoppers and the more than 1700 businesses registered to use the logo. The 'Australian Made' logo is in fact a certification trademark which means businesses must follow strict rules when using it,” he said.
“More importantly, shoppers have the right to know where the products they buy come from. “Marksun showed complete disregard for both these points and as a result must face the consequences of the law.”
Justice Gilmour also ordered that Marksun be permanently prevented from similar conduct, and that an explanatory notice be posted to each of the company’s websites that promoted its ugg boots. Marksun has also been ordered to pay the ACCC’s costs.
ACCC chairman, Graeme Samuel said the hopes case will warn other companies off misleading conduct and highlight the need for businesses to be particularly careful when they are promoting their products to ensure the promotional material does not represent the product as something it is not.
“The ACCC considers country of origin claims to be a particularly valuable marketing tool for businesses as many consumers place a premium on goods that are Australian made. This outcome serves as a timely reminder that the ACCC will not hesitate to take action against businesses which mislead consumers about the origin of the goods they are selling,” he said.
“The ACCC will continue to monitor advertising of this nature to ensure compliance with the Act.”