The ACCC today commenced proceedings in the Federal Court, alleging that national fashion retailer Mosaic Brands Limited breached the Australian Consumer Law by failing to deliver several hundred thousand products to customers within the delivery timeframes advertised on its websites.
Mosaic Brands owns a number of popular brands, including Noni B, Rivers, Katies, Rockmans, Millers, Autograph, Beme, Crossroads and W. Lane.
Mosaic Brands advertised on its brand websites that items would be delivered within certain timeframes. The timeframes varied between the websites, but were generally two to 17 business days from the purchase date.
The ACCC alleges that, between 23 September 2021 and 31 March 2022, Mosaic Brands made false or misleading representations to consumers that it would deliver products purchased online within the advertised delivery timeframes. It is also alleged that Mosaic Brands wrongly accepted payment for goods during the same period, when it failed to deliver orders within the advertised timeframes, or within a reasonable timeframe, or not at all.
Customers experienced excessive and lengthy delays during this time, where over 26 per cent of items ordered were dispatched from Mosaic Brands’ warehouses at least 20 days, and in some cases more than 40 days, after the purchase date.
“The ACCC has received hundreds of complaints about Mosaic Brands in relation to delivery delays,” ACCC Commissioner Liza Carver said.
“Excessively late deliveries can be incredibly frustrating and inconvenient for consumers, especially if they decided to buy goods for a special occasion, such as Christmas, based on the advertised delivery times which were not met,” Ms Carver said.
“Consumer issues in domestic supply chains is a current ACCC enforcement priority.”
The ACCC also alleges that between 23 September 2021 and at least 23 October 2022, Mosaic Brands misrepresented consumer guarantee rights in the terms and conditions published on eight of its brands websites, when it stated that consumers were only eligible for a refund for a faulty product if they sought the refund within six months of the purchase date.
“If you buy a product or service and discover it is faulty, not of acceptable quality or does not match its description, you are entitled to a free repair and may also be entitled to a refund or replacement. These legal rights are called ‘consumer guarantees’ under the Australian Consumer Law and they don’t have a specific expiry date,” Ms Carver said.
Under the Australian Consumer Law, consumer guarantees apply for a period of time that is considered reasonable having regard to the nature of the products or services, including the price paid.
The ACCC is seeking declarations, injunctions and penalties, as well as costs and other orders, including that Mosaic Brands implement a consumer law compliance program.
Background
Mosaic Brands is a publicly listed company that specialises in women’s fashion. It has approximately 7.8 million online members and operates around 804 stores across the country.
Mosaic Brands has previously paid a total of $896,400 in penalties following the ACCC issuing it with infringement notices in May 2021 and September 2022.