Latest news with #ACCC
9 News
2 days ago
- Business
- 9 News
Thermomix pays $80,000 fine for 'misleading consumers' over NDIS claims
Your web browser is no longer supported. To improve your experience update it here A kitchen appliance company paid $79,200 in fines over allegations two of its products were falsely labelled as NDIS-approved. Vorwerk Australia, trading as Thermomix, was hit with four infringement notices by the Australian Competition and Consumer Commission (ACCC) for allegedly making false of misleading representations to customers online. The competition watchdog has alleged Thermomix falsely promoted the Thermomix TM6 cooking product and Kobold cordless vacuum and mop as being endorsed through the NDIS or registered by an entity administering the NDIS. A spokesperson for parent company Vorwerk Australia said the organisation "would never intentionally or knowingly mislead any consumers". The ACCC has alleged Thermomix promoted its TM6 cooking product as being endorsed through the NDIS or registered by an entity administering the NDIS. (Thermomix) The watchdog claims this allegedly describing the products as NDIS approved, NDIS-registered product, NDIS-consumables, NDIS assistive technology and NDIS equipment. ACCC Chair Gina Cass-Gottlieb said misleading consumers experiencing vulnerability or disadvantage was concerning. "We will not hesitate to take appropriate action," Cass-Gottlieb said. "The NDIS does not provide specific approval for any particular goods or services." The ACCC said the payment of the penalty is not an admission of contravention of Australian consumer law. A spokesperson for parent company Vorwerk Australia said: "We have not hesitated to take appropriate action to remedy all instances of concern raised by the ACCC," the spokesperson said. "While some of the website references pre-date the acquisition of The Mix Australia Pty Ltd, we take full responsibility for communicating with all our customers in a clear and compliant manner." The spokesperson said in November 2024, Vorwerk International & Co. KmG completed an acquisition of The Mix Australia Pty Ltd. After the acquisition, The Mix Australia Pty Ltd was renamed as Vorwerk Australia Pty Ltd. national Australia Consumer disability CONTACT US Property News: He was evicted. Then he saw his home on Airbnb.
ABC News
3 days ago
- Business
- ABC News
ACCC announces investigation into REA Group
The Australian Competition and Consumer Commission has announced it is in the early stages of an investigation into REA Group, the 33 billion-dollar operator of over concerns about competition in the real estate industry. The investigation comes as the News Corp-controlled real estate advertising service has told customers it would increase subscription prices for real estate agents by as much as 78 per cent from July 1. Guest: Tim McKibbin, chief executive of the Real Estate Institute of New South Wales Producer: Grace Stranger The REA Group released the following statement: "REA is committed to providing choice, value and flexibility to its customers and consumers, and remains focussed on delivering products and services that improve the property experience of buyers, sellers and renters. "REA is cooperating fully with the ACCC and is unable to comment further for confidentiality reasons."
The Guardian
3 days ago
- Business
- The Guardian
Selling a house in Australia is expensive. The ACCC is investigating one reason why
Australia's consumer watchdog is investigating the practices of REA Group, the News Corp-controlled real estate listings behemoth that runs The development comes months after a major Guardian Australia investigation probing the practices of REA Group, which critics alleged was shutting out new players and hiking up advertising prices. Some in the industry fear the market dominance of REA Group is hurting consumers, both by increasing the costs associated with buying, selling and renting, and by denying them flexibility and choice in the way they advertise and search for property. So, what do we know about the Australian Competition and Consumer Commission's investigation? REA Group is the biggest real estate listings company in the country. It runs the ubiquitous the main portal for buying, selling and renting property in Australia. The size of the company cannot be overstated. It leads the real estate listings market across every platform and in the most recent quarter, had a monthly traffic of 12.3m people visiting its site. In August, it posted a $460.5m annual net profit in August, with a market capitalisation of $26.7bn, making it more valuable than supermarket giant Coles. It is owned by News Corp and is larger than its nearest competitor, the Nine-owned Domain, by a considerable margin. Last year, Guardian Australia spent months investigating the real estate sector, including the practices of REA Group. The investigation revealed that real estate agents believed REA Group was using its effective monopoly on the market to price gouge. Prices to list properties on the REA Group's portal and on Domain had increased by about 30% over the past three years, the investigation revealed, leaving a top-tiered listing in inner-city Sydney or Melbourne costing up to $4,000 on each platform. Guardian Australia revealed REA Group's conduct had been the subject of multiple complaints to the ACCC, one of which alleged it was using 'deceptive' terminology and listing sales from agents who had paid for more expensive products when people searched for 'relevant' sales results in a particular area. A spokesperson for REA Group said agents could choose advertising packages according to their needs, but said the 'seismic shift' from print to online had led to a significant increase in 'the size of audience and the number of leads delivered to agencies'. 'REA's per listing costs are priced to reflect the additional value delivered to vendors and agents in digital prime experiences,' they said. Industry disruptors told Guardian Australia they felt they were being significantly disadvantaged by the practices and pricing structures of and, to a lesser extent, Domain, claiming they cannot compete on a level playing field with traditional real estate agents. Guardian Australia also revealed that 170 real estate agencies and franchisees were party to a 2016 application to the ACCC that sought permission from the competition and consumer watchdog to be able to collectively negotiate and, if necessary, boycott, and Domain. The 170 agencies said the dominance of the REA Group, and in some cases Domain, distorted the online advertising market and made prices 'high and disproportionate' for the services offered. The revelations were so significant they prompted Rod Sims, the former ACCC commissioner, to say: 'This behaviour seems well worth considering under section 45 of the Competition and Consumer Act.' Earlier this week, the REA Group informed the ASX about 'speculation regarding an investigation being undertaken by the Australian Competition and Consumer Commission'. The company said it had received a notice from the ACCC requiring it to provide 'information regarding certain subscription offerings'. It is unclear at this stage whether the investigation directly relates to the Guardian's investigation last year. 'REA is cooperating fully with the ACCC and is unable to comment further for confidentiality reasons,' the company said. 'REA will continue to comply with its disclosure obligations and will update the market on this matter as appropriate.' The Australian Financial Review reported that the update to the ASX had been given following its questions to the REA Group. Some in the industry fear the price hikes to advertise on and Domain were hurting consumers. The 2016 ACCC application argued the market dominance of REA Group, and in some cases Domain, meant a lack of 'real choice or flexibility' in the advertising options available to agents and therefore consumers. Barry Plant's chief executive, Lisa Pennell, had previously told Guardian Australia that regulators needed to be alert to the market power of REA Group and Domain. 'Competition is important in any industry,' she said. 'There is an inherent risk for any dominant player to lose sight of competitive forces and become insular in their attitude.' Pennell said that because of the ongoing advertising fee increases, many agents were being forced to eat into their own commissions in order to secure listings. 'Ultimately because the consumer only wants to pay so much, the pressure is on the agents to work for reduced fees, which in many cases may result in poorer outcomes for the customer.'
The Advertiser
3 days ago
- Business
- The Advertiser
Kitchen brand fined after labelling an appliance 'NDIS-approved'
The parent company behind kitchen brand Thermomix has been fined after allegedly labelling some of its appliances as "NDIS-approved" or "NDIS-assistive technology". The consumer watchdog alleges the company misled customers by suggesting two of its household appliances were endorsed by the National Disability Insurance Scheme. Vorwerk Australia Pty Ltd, which trades as Thermomix in Australia, has paid the $79,200 fine. The Australian Competition and Consumer Commission alleges the company promoted the Thermomix TM6 cooking appliance and the Kobold cordless vacuum and mop as being endorsed through the NDIS or registered by an entity administering the NDIS. However, the NDIS does not endorse or approve specific products. The brand allegedly used descriptions such as "NDIS-approved", "NDIS-registered product", "NDIS-consumables", "NDIS-assistive technology", and "NDIS equipment". The penalties were part of a crackdown on businesses making false NDIS endorsements. Earlier in May, bedding retailer Bedshed paid $39,600 in penalties for allegedly marketing its products as NDIS approved or permitted. ACCC chair Gina Cass-Gottlieb said the NDIS does not provide specific approvals for products or services. "Each NDIS participant has unique needs, and what's funded under their plan is determined individually, not through a list of approved products," she said. "There are no categories of goods or services which are automatically NDIS-approved or funded for all NDIS participants." She said the watchdog would not hesitate to take action if a business was found to be misleading vulnerable consumers. The ACCC, along with the NDIS Quality and Safeguards Commission and the National Disability Insurance Agency, established a taskforce in 2023 to address concerns that NDIS participants were being overcharged for products and services. MORE NEWS: It put businesses on notice in November 2024, saying it was cracking down on problematic advertising that targeted NDIS participants. In late 2024, the ACCC launched proceedings against registered NDIS provider Ausnew Home Care Service Pty Ltd, alleging it made false "NDIS-approved" statements about its aged care and disability products. The matter is before the courts. The watchdog is encouraging people to report businesses they believe have made false statements about products being NDIS-approved. The parent company behind kitchen brand Thermomix has been fined after allegedly labelling some of its appliances as "NDIS-approved" or "NDIS-assistive technology". The consumer watchdog alleges the company misled customers by suggesting two of its household appliances were endorsed by the National Disability Insurance Scheme. Vorwerk Australia Pty Ltd, which trades as Thermomix in Australia, has paid the $79,200 fine. The Australian Competition and Consumer Commission alleges the company promoted the Thermomix TM6 cooking appliance and the Kobold cordless vacuum and mop as being endorsed through the NDIS or registered by an entity administering the NDIS. However, the NDIS does not endorse or approve specific products. The brand allegedly used descriptions such as "NDIS-approved", "NDIS-registered product", "NDIS-consumables", "NDIS-assistive technology", and "NDIS equipment". The penalties were part of a crackdown on businesses making false NDIS endorsements. Earlier in May, bedding retailer Bedshed paid $39,600 in penalties for allegedly marketing its products as NDIS approved or permitted. ACCC chair Gina Cass-Gottlieb said the NDIS does not provide specific approvals for products or services. "Each NDIS participant has unique needs, and what's funded under their plan is determined individually, not through a list of approved products," she said. "There are no categories of goods or services which are automatically NDIS-approved or funded for all NDIS participants." She said the watchdog would not hesitate to take action if a business was found to be misleading vulnerable consumers. The ACCC, along with the NDIS Quality and Safeguards Commission and the National Disability Insurance Agency, established a taskforce in 2023 to address concerns that NDIS participants were being overcharged for products and services. MORE NEWS: It put businesses on notice in November 2024, saying it was cracking down on problematic advertising that targeted NDIS participants. In late 2024, the ACCC launched proceedings against registered NDIS provider Ausnew Home Care Service Pty Ltd, alleging it made false "NDIS-approved" statements about its aged care and disability products. The matter is before the courts. The watchdog is encouraging people to report businesses they believe have made false statements about products being NDIS-approved. The parent company behind kitchen brand Thermomix has been fined after allegedly labelling some of its appliances as "NDIS-approved" or "NDIS-assistive technology". The consumer watchdog alleges the company misled customers by suggesting two of its household appliances were endorsed by the National Disability Insurance Scheme. Vorwerk Australia Pty Ltd, which trades as Thermomix in Australia, has paid the $79,200 fine. The Australian Competition and Consumer Commission alleges the company promoted the Thermomix TM6 cooking appliance and the Kobold cordless vacuum and mop as being endorsed through the NDIS or registered by an entity administering the NDIS. However, the NDIS does not endorse or approve specific products. The brand allegedly used descriptions such as "NDIS-approved", "NDIS-registered product", "NDIS-consumables", "NDIS-assistive technology", and "NDIS equipment". The penalties were part of a crackdown on businesses making false NDIS endorsements. Earlier in May, bedding retailer Bedshed paid $39,600 in penalties for allegedly marketing its products as NDIS approved or permitted. ACCC chair Gina Cass-Gottlieb said the NDIS does not provide specific approvals for products or services. "Each NDIS participant has unique needs, and what's funded under their plan is determined individually, not through a list of approved products," she said. "There are no categories of goods or services which are automatically NDIS-approved or funded for all NDIS participants." She said the watchdog would not hesitate to take action if a business was found to be misleading vulnerable consumers. The ACCC, along with the NDIS Quality and Safeguards Commission and the National Disability Insurance Agency, established a taskforce in 2023 to address concerns that NDIS participants were being overcharged for products and services. MORE NEWS: It put businesses on notice in November 2024, saying it was cracking down on problematic advertising that targeted NDIS participants. In late 2024, the ACCC launched proceedings against registered NDIS provider Ausnew Home Care Service Pty Ltd, alleging it made false "NDIS-approved" statements about its aged care and disability products. The matter is before the courts. The watchdog is encouraging people to report businesses they believe have made false statements about products being NDIS-approved. The parent company behind kitchen brand Thermomix has been fined after allegedly labelling some of its appliances as "NDIS-approved" or "NDIS-assistive technology". The consumer watchdog alleges the company misled customers by suggesting two of its household appliances were endorsed by the National Disability Insurance Scheme. Vorwerk Australia Pty Ltd, which trades as Thermomix in Australia, has paid the $79,200 fine. The Australian Competition and Consumer Commission alleges the company promoted the Thermomix TM6 cooking appliance and the Kobold cordless vacuum and mop as being endorsed through the NDIS or registered by an entity administering the NDIS. However, the NDIS does not endorse or approve specific products. The brand allegedly used descriptions such as "NDIS-approved", "NDIS-registered product", "NDIS-consumables", "NDIS-assistive technology", and "NDIS equipment". The penalties were part of a crackdown on businesses making false NDIS endorsements. Earlier in May, bedding retailer Bedshed paid $39,600 in penalties for allegedly marketing its products as NDIS approved or permitted. ACCC chair Gina Cass-Gottlieb said the NDIS does not provide specific approvals for products or services. "Each NDIS participant has unique needs, and what's funded under their plan is determined individually, not through a list of approved products," she said. "There are no categories of goods or services which are automatically NDIS-approved or funded for all NDIS participants." She said the watchdog would not hesitate to take action if a business was found to be misleading vulnerable consumers. The ACCC, along with the NDIS Quality and Safeguards Commission and the National Disability Insurance Agency, established a taskforce in 2023 to address concerns that NDIS participants were being overcharged for products and services. MORE NEWS: It put businesses on notice in November 2024, saying it was cracking down on problematic advertising that targeted NDIS participants. In late 2024, the ACCC launched proceedings against registered NDIS provider Ausnew Home Care Service Pty Ltd, alleging it made false "NDIS-approved" statements about its aged care and disability products. The matter is before the courts. The watchdog is encouraging people to report businesses they believe have made false statements about products being NDIS-approved.
West Australian
4 days ago
- Business
- West Australian
Thermomix cops massive ACCC fine after ‘misleading' NDIS approval claims
A massive kitchenware company allegedly falsely claimed its products were 'NDIS approved' to drive sales but has copped a massive fine instead. Vorwerk Australia, trading as Thermomix in Australia, has been fined nearly $80,000 for allegedly falsely suggesting two of its household appliances were endorsed by the National Disability Insurance Scheme. Thermomix falsely promoted the Thermomix TM6 cooking product and Kobold cordless vacuum and mop as being endorsed through the NDIS or registered by an entity administering the NDIS, the ACCC alleges. The Thermomix website in November last year and March this year allegedly described the two products as 'NDIS approved', 'NDIS-registered product', 'NDIS-consumables', 'NDIS assistive technology' and 'NDIS equipment'. However, the NDIS does not approve goods, according to ACCC chair Gina Cass-Gottlieb. 'The NDIS does not provide specific approval for any particular goods or services. Each NDIS participant has unique needs, and what's funded under their plan is determined individually, not through a list of approved products,' she said. 'There are no categories of goods or services which are automatically NDIS approved or funded for all NDIS participants. 'Misleading consumers experiencing vulnerability or disadvantage is of concern to us, and we will not hesitate to take appropriate action.' The ACCC put businesses on notice of problematic advertising targeting NDIS participants in November 2023. Just last week, bedding retailer Bedshed was fined nearly $40,000 for allegedly making similar false statements that some of its products were 'NDIS approved'.
