Emma Sleep Pty Ltd has admitted it engaged in false or misleading representations about the sale prices of its mattresses, bed frames, pillows, and accessories, the consumer watchdog said.
The Australian Competition and Consumer Commission (ACCC) added that the Federal Court of Australia also found that Emma Sleep’s related entity, Bettzeit Southeast Asia, engaged in the same misconduct.
According to the ACCC, Emma Sleep advertised 74 products online, showing a purchase price alongside a higher price with a ‘strikethrough’ between at least June 15, 2020 and March 27, 2023.
The retailer also displayed a percentage discount such as “50% OFF” or indicated the sale price would represent a certain saving to the customer.
However, the ACCC found that 58 of the 74 products had not previously been for sale at the strikethrough price or at the price Emma Sleep claimed it was offered before the discount.
The remaining 16 products had almost never been for sale at the strikethrough price or a price equivalent to the price without the advertised discount.
“Sales campaigns on the Emma Sleep website and other platforms indicated that discounts would only be available for limited periods of time through the use of countdown timers,” said Catriona Lowe, ACCC Deputy Chair.
“The timers created a false sense of urgency by suggesting the sale price would no longer be available after the timer reached zero. In fact, after reaching zero the countdown timers reset, or the products continued to be advertised for sale at the same or similar discount.”
The ACCC had also taken action against Emma Sleep Pty Ltd’s German parent, Emma Sleep GmbH, but the Court dismissed the allegations.
The Court has yet to determine the penalty and other orders after a hearing for the Australian retailer.