Aussie retailer hits back at 'flawed' false advertising legal action

Popular Australian clothing brands have hit back at new legal actions against them, describing an ACCC case over the alleged false advertising of shipping times as "flawed".

The ACCC have launched Federal Court action alleging that Mosaic Brands, owner of popular outlets including Rivers, Noni B, Millers, Autograph and Katies, failed to deliver products to their customers within the advertised time frame.

ACCC Commissioner Liza Carver said the ACCC had received "hundreds of complaints" about the brand and their delivery times.

Although Mosaic Brands had advertised that products would be shipped two to 17 business days from the purchase date, the ACCC said this was not the case.

The ACCC alleged that between September 2021 and March 2022, 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.

"Excessively late deliveries can be incredibly frustrating and inconvenient for consumers," Ms Carver said.

"Especially if they decided to buy goods for a special occasion, such as Christmas, based on the advertised delivery times which were not met."

The consumer watchdog also alleged that between September 2021 and October 2022 Mosaic Brands misrepresented consumer rights in its terms and conditions.

It stated refunds for faulty items were only available within six months of the purchase date.

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Under the Australian Consumer Law if a product is faulty consumers are entitled to a free repair and even potentially a refund or replacement.

These 'consumer guarantees' do not have a specific limit as long as it is within a reasonable time frame.

A Mosaic Brands spokesperson said they disagreed with the ACCC.

"Mosaic Brands believes the ACCC claim is flawed, and we will be vigorously defending it in court," the spokesperson said.

"For the last two years Mosaic Brands fulfilment rates have been over the Government-mandated benchmark for Australia Post."