Lorna Jane has been hit with a $5 million fine from the Australian Competition and Consumer Commission (ACCC) for making false and misleading claims about its LJ Shield activewear.
Lorna Jane admitted that, between 2 and 23 July 2020, it falsely represented to consumers that its LJ Shield Activewear "eliminated", "stopped the spread" and "protected wearers" against "viruses including COVID-19."
The misleading representations were made on in-store signage, on its website, on Instagram, in emails to consumers and in media releases.
ACCC chair Rod Sims said the fine represents the serious nature of the business' conduct.
"Lorna Jane falsely promoted its LJ Shield Activewear as eliminating or providing protection from COVID amidst growing numbers of COVID-19 cases in Australia," he said.
"The whole marketing campaign was based upon consumers’ desire for greater protection against the global pandemic.
"The $5 million in penalties imposed by the Court highlights the seriousness of Lorna Jane’s conduct, which the judge called ‘exploitative, predatory and potentially dangerous," he said.
The business also admitted that it had falsely represented it had a scientific or technological basis for making the ‘anti-virus’ claims about its LJ Shield Activewear, when no such basis existed.
Additionally, Lorna Jane admitted that it did not have any scientific testing results showing the effectiveness of LJ Shield Activewear on viruses, including COVID-19, nor did it have any scientific results or evidence which would establish the truth of the representations.
The business also admitted that director, founder and chief creative officer Lorna Jane Clarkson authorised and approved the LJ Shield Activewear promotional material, was involved in crafting the words and developing the imagery used in the marketing campaign, and personally made some of the false statements contained in a media release and an Instagram video.
"This was dreadful conduct as it involved making serious claims regarding public health when there was no basis for them," Sims added.
"This type of conduct is particularly harmful where, as here, consumers cannot easily check or monitor the claims made," he said.
In addition to the penalties, the Court also ordered that Lorna Jane is restrained from making any 'anti-virus' claims regarding its activewear clothing unless it has a reasonable basis for doing so, must publish corrective notices across the mediums utilised in the marketing campaign, must establish a consumer law compliance program, and must pay the ACCC’s costs.