Latest news with #consumerlaw
Daily Mail
2 days ago
- Business
- Daily Mail
Bombshell as Webjet is hit by a HUGE fine for misleading customers in landmark court ruling
Webjet has been ordered by the Federal Court to pay $9million in penalties for making false or misleading statements about the price of flights and booking confirmations. The case run by the ACCC, saw the online travel agency admit between 2018 and 2023 it made false or misleading statements when it advertised airfares that excluded compulsory fees. The statements were made on its website, and in promotional emails and social media posts. Webjet also admitted that between 2019 and 2024 it provided false or misleading booking confirmations to 118 consumers for flight bookings which had not actually been confirmed. Webjet later asked for additional payments, of up to $2,120 from consumers to complete the booking. Webjet has refunded these consumers. The ACCC started its investigation after a consumer complained about an airfare advertised as 'from $18', which cost almost three times that price after Webjet added its compulsory fees. 'We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads,' ACCC Chair Gina Cass-Gottlieb said. 'Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law.' The Webjet fees comprised the 'Webjet servicing fee' and 'booking price guarantee' fee which ranged from $34.90 to $54.90 per booking, depending on whether the flights were domestic, to New Zealand and the Pacific, or other international destinations. While Webjet's website, app and most emails contained information about the additional fees, some users had to scroll to the fine print near the bottom of the screen to see them. In its social media posts, Webjet didn't disclose the additional fees at all. 'Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges,' Ms Cass-Gottlieb said. The Webjet fees represented 36 per cent of Webjet's total revenue in the period from 1 November 2018 to 13 November 2023. Webjet co-operated with the ACCC, admitted liability and agreed to make joint submissions to the Court about orders, including the penalty. The Court also made declarations and other orders proposed, including that Webjet review its compliance program and pay a contribution to the ACCC's costs.
News.com.au
11-06-2025
- Business
- News.com.au
Major Australian retailers fined for dodgy Black Friday sales
Three major Australian retailers have been fined for dodgy Black Friday sales. Jeweller Michael Hill, homewares retailer Global Retail Brands Australia, and Hairhouse Online have each paid a $19,800 fine following infringement notices from the Australian Competition and Consumer Commission (ACCC), the regulator says. Paying fines does not amount to an admission of breaking the Australian Consumer Law. The consumer watchdog issued the infringement notices after finding the retailers were selling non-discounted items despite their website homepages spruiking 'sitewide' sales or sales on 'everything'. The discrepancies were found during a sweep the ACCC did of Black Friday sales, the period at the end of November where retailers typically have large discounts. 'Businesses that make false discount claims not only risk misleading consumers, they also compete unfairly against other businesses which correctly state the nature of their sales,' ACCC deputy chair Catriona Lowe said. ACCC analysis shows that while Michael Hill had a prominent banner on its homepage promoting a 'member event' 25 per cent off sitewide sale, some items were not discounted. 'Michael Hill's statement may have misled consumers, and contravened the Australian Consumer Law, because some of the products in its online store were not part of the sale and were not discounted,' Ms Lowe said. Global Retail Brands Australia owns MyHouse, which has 28 physical stores in Australia, plus a range of similar homewares businesses. Splashed across the MyHouse e-store late last year was an ad saying 'everything' was subject to a Black Friday sale with discounts up to 60 per cent. The ad also promised an 'extra' 20 per cent off. 'We say this was misleading because the extra 20 per cent discount was not available on all of its products,' Ms Lowe said. 'Retailers need to ensure that their advertising makes it clear to consumers which products are discounted and by how much.' Hairhouse Online promised 20 to 50 per cent off 'sitewide' for Black Friday sales. More than one-quarter of items on the site were not discounted at all, the ACCC says. The haircare retailer is owned by Melbourne-based The Hairhouse Warehouse. Australians spent about $7bn on the Black Friday sales in 2024.
Bloomberg
27-05-2025
- Business
- Bloomberg
Singapore's AI Push Charts Path Toward Localized Models
Welcome to Tech In Depth, our daily newsletter with reporting and analysis about the business of tech from Bloomberg's journalists around the world. Today, Saritha Rai returns from a week in Singapore with word of the latest AI developments in the region. Shein reprimand: The EU has told the Singapore-based ecommerce firm it could face fines unless it clamps down on consumer law violations on its platform.
BreakingNews.ie
26-05-2025
- Business
- BreakingNews.ie
EU calls on Shein to respond to claims of fake discounts and pressure selling
The European Commission has given fast-fashion retailer Shein one month to respond to a probe into practices its regulator believes could potentially be breaching consumer law. Ireland's Competition and Consumer Protection Commission (CCPC) is co-leading the investigation which has called on the online marketplace to address several issues including allegations of fake discounts, pressure selling tactics and unclear information regarding customer rights. Advertisement The CCPC said fake discounts potentially include pretending to offer better deals by showing price reductions that are not based on actual prior rates as required by EU law. It said other issues include using false deadlines to pressure consumers to purchase, displaying incomplete or incorrect information about consumer's rights on returns and refunds, deceptive product labels, misleading or deceptive claims about sustainability benefits, and making it difficult for consumers to contact Shein with questions or complaints. Information has also been requested to assess the company's compliance with further obligations including those around product rankings, ratings and reviews, and third-party sellers. The CCPC said Shein has one month to propose commitments on how they will address the identified consumer law issues. Advertisement The EU Commission probe is being conducted along with national consumer authorities in Belgium, France and the Netherlands. Depending on the company's reply, the EU consumer protection network may enter a dialogue with the retailer. If Shein fails to address the concerns, national authorities can investigate further and may take enforcement measures to ensure compliance, which may include fines based on its annual turnover in the relevant member states. Patrick Kenny, CCPC Commission member, said: 'Consumers should be allowed to shop without being put under pressure by fake deadlines or misled by fake discounts. Advertisement 'They also need clear information about how consumers can contact the company, how to return an item and receive a refund. 'In this case, the CCPC and the CPC Network have identified several practices that could mislead consumers or undermine their consumer rights. Ireland Ireland will need dedicated clinic to deal with ph... Read More 'E-retailers and online marketplaces have a legal obligation to provide transparent and honest information about the products they sell, and consumers' rights around returns. The CCPC takes any breaches of the law very seriously and looks forward to constructive engagement with Shein during the course of this investigation.' Advertisement Shein has been contacted for comment.
Yahoo
26-05-2025
- Business
- Yahoo
EU calls on Shein to respond to claims of fake discounts and pressure selling
The European Commission has given fast-fashion retailer Shein one month to respond to a probe into practices its regulator believes could potentially be breaching consumer law. Ireland's Competition and Consumer Protection Commission (CCPC) is co-leading the investigation which has called on the online marketplace to address several issues including allegations of fake discounts, pressure selling tactics and unclear information regarding customer rights. The CCPC said fake discounts potentially include pretending to offer better deals by showing price reductions that are not based on actual prior rates as required by EU law. It said other issues include using false deadlines to pressure consumers to purchase, displaying incomplete or incorrect information about consumer's rights on returns and refunds, deceptive product labels, misleading or deceptive claims about sustainability benefits, and making it difficult for consumers to contact Shein with questions or complaints. Information has also been requested to assess the company's compliance with further obligations including those around product rankings, ratings and reviews, and third-party sellers. The CCPC said Shein has now one month to propose commitments on how they will address the identified consumer law issues. The EU Commission probe is being conducted along with national consumer authorities in Belgium, France and the Netherlands. Depending on the company's reply, the EU consumer protection network may enter a dialogue with the retailer. If Shein fails to address the concerns, national authorities can investigate further and may take enforcement measures to ensure compliance, which may include fines based on its annual turnover in the relevant member states. Patrick Kenny, CCPC Commission member, said: 'Consumers should be allowed to shop without being put under pressure by fake deadlines or misled by fake discounts. 'They also need clear information about how consumers can contact the company, how to return an item and receive a refund. 'In this case, the CCPC and the CPC Network have identified several practices that could mislead consumers or undermine their consumer rights. 'E-retailers and online marketplaces have a legal obligation to provide transparent and honest information about the products they sell, and consumers' rights around returns. The CCPC takes any breaches of the law very seriously and looks forward to constructive engagement with Shein during the course of this investigation.' Shein has been contacted for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
