Sydney, March 15: The Federal Court mandated Bloomex, an online florist and gift retailer, to pay $1 million for violating Australian Consumer Law.
Bloomex acknowledged deceptive practices on its website, including publishing false product star ratings, advertising discounted prices without having sold items at those prices before, and adding insufficiently disclosed surcharges.
ACCC Commissioner Liza Carver highlighted the significance of the penalty and the ACCC’s commitment to addressing misleading digital economy advertising.
Misrepresentations regarding online reviews and star ratings, which could sway consumer decisions, were of particular concern.
Bloomex’s star ratings, unchanged since January 2015, featured reviews from non-customers or those outside Australia.
Moreover, deceptive ‘strikethrough’ pricing and the concealment of extra fees, a tactic known as drip pricing, were among the malpractices.
The court’s decision includes penalties, injunctions, a mandate for a compliance program, and coverage of the ACCC’s legal costs, following Bloomex’s admission of its legal breaches.
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