A major online bedding supplier has been hit with a $15 million fine for advertising fake discounts and creating a fake sense of urgency by using a countdown timer that reset itself.
Emma Sleep made false or misleading representations about the sale price of mattresses, bed frames, pillows, and accessories, the Australian Competition and Consumer Commission revealed on Friday.
The company admitted to making false claims on 74 of its products, with most being advertised as on sale when no saving existed.
It also admitted lying that the "discount" prices were for a limited time only and using phrases such as "Ending Soon" when the products continued to be advertised at the same or similar price.
The Federal Court found the conduct was a deliberate marketing strategy and senior management turned a blind eye to whether it contravened Australian Consumer Law.
The conduct occurred between June 2020 and March 2023, during which Emma Sleep made more than $134 million in revenue on the sale of over 243,000 individual products.
Emma Sleep Pty Ltd has been ordered to pay a penalty of $7.5 million, and Emma Sleep Southeast Asia Inc will pay $7.5 million.
