Owner of Noni B, Katies and Rockmans Faces Legal Action by ACCC
The ACCC reports that 26 percent of deliveries took longer than 20 days to reach customers’ doorsteps over a seven-month period.
Enforcement action has been taken by the Australian Competition and Consumer Commission (ACCC) in response to numerous complaints about an online retailer failing to deliver goods promptly, causing confusion among customers awaiting their purchases.
Popular brands like Noni B, Rivers, Katies, Autograph, W.Lane, Crossroads, Beme, and Rockmans, owned by Mosaic Brands Ltd, were involved, with customers reportedly experiencing delays of up to 40 days for online orders.
The ACCC’s legal action against Mosaic comes from the retailer accepting payment for delayed or undelivered goods, leading to significant inconvenience for consumers, especially for those buying items for special occasions like Christmas based on promised delivery times not being met.
From September 2021 to March 2022, the ACCC states that 26 percent of online orders arrived beyond the 20-day expectation, despite Mosaic advertising delivery times ranging from two to 17 business days.
Mosaic refutes these claims, with a spokesperson asserting that their fulfillment rates exceeded Australia Post’s government-mandated benchmark over the past two years and plans to vigorously defend against the ACCC’s allegations.
Additional issues with Mosaic involve mishandling of consumer rights for faulty goods, such as misleading advice on returns and refunds. The ACCC accuses Mosaic of wrongly informing customers about replacement options for damaged items and misrepresenting the timeframe for claiming a refund under consumer guarantees.
This is not the first legal scrutiny faced by Mosaic, as they previously paid penalties totaling $630,000 for breaching consumer laws. In one instance, the retailer advertised incorrect information on hand sanitizers and sold unapproved masks. More recently in 2022, Mosaic received fines for false claims about products on their website, including a falsely labeled KN95 face mask and a misrepresented “ACCC approved” hot water bottle.
In the current case, the ACCC is not only seeking penalties but also aiming to prevent Mosaic from promoting certain products as part of an injunction.
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