ACCC accepts court-enforceable undertakings from two ugg boot companies

Two companies involved in the importation and sale of ugg boots in Australia have admitted that the 100 per cent wool lining claims on the HUMAN range of ugg boots was wrong.

Rogue Footwear Pty Ltd, a footwear importer, and Pegasus Investments & Holdings Pty Ltd trading as Coastline Agency, which receives footwear from Rogue to sell in Australia, have provided court-enforceable undertakings to the Australian Competition and Consumer Commission in relation to HUMAN brand ugg boots.

The ACCC was concerned that labels on the HUMAN range of footwear represented that the footwear was "100% WOOL LINING" and further that the lining was "AUSTRALIAN MERINO WOOL", when test results indicated that the lining was made up of 99.5% polyester and 0.5% polypropylene.

The ACCC considers that, as a result, Rogue and Coastline were likely to have breached sections 52, 53(a) and 55 of the Trade Practices Act 1974 by making false or misleading representations that goods are of a particular standard or quality; and misleading the public as to the nature, the manufacturing process or the characteristics of the goods.

"The ACCC will not tolerate companies who attempt to mislead and deceive consumers, especially where the claims relate to products which have wide popular recognition in Australia, such as 100 per cent wool claims in this particular case", ACCC Chairman, Mr Graeme Samuel, said today.

"Any entity which seeks to derive benefits from representing that its footwear contains '100% WOOL LINING' and 'AUSTRALIAN MERINO WOOL' when that isn't the case, causes damage to Australian consumers and industries".

Rogue and Coastline have given court-enforceable undertakings that they:

• will not supply and sell in Australia any footwear product that is labelled "100% WOOL LINING" and/or "AUSTRALIAN MERINO WOOL' where to the knowledge of Rogue and Coastline that representation is or may be false, and
• will implement a trade practices compliance program.

Furthermore, Coastline will offer consumers who were misled by the conduct a refund of the cost of the boots. It has published a corrective notice in newspapers.