Katies, Rivers owner fined again over false product claims

The regulator said no customers had ordered these products via the websites.

A Mosaic Brands spokesman said given the fine related to two products that did not receive any orders, the company was disappointed by the fine.

“The claims that the ACCC refer to relate to a third-party sellers product advertised on two of our 11 websites. They were immediately removed when we became aware of the issue and neither product was ever purchased by a customer,” he said.

The company had strict monitoring in place, but “even with best endeavours in monitoring, when you’re offering 5.8 million items, there can be a tiny minority of third-party sellers who do the wrong thing”.

In May 2021, Mosaic paid penalties of $630,000 after five infringement notices over claims about its masks and hand sanitisers. The false claims alleged  included that its hand sanitisers contained 70 per cent alcohol when it was 17 per cent, and that children’s masks were FDA approved when they were not.

Mosaic Brands entered a three-year enforceable undertaking with the regulator as a result of the action, which meant it had to commit to a refund scheme and consumer law compliance program.

The company has been contacted for comment.

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