Mosaic Brands pays penalties for misleading representations
Mosaic Brands has paid $266,400 in penalties following two infringement notices issued by the Australian Competition and Consumer Commission (ACCC) for misleading representations.
Mosaic Brands advertised a KN95 mask for sale on its Autograph Fashion website in August last year and described it as an “FDA and CE approved” product, however, it was neither backed by the US Food and Drug Administration nor Conformitè Europëenne in the EU.
In the same month, the brand promoted and sold a McGloin’s-branded hot-water bottle on its Katies brand website, making falsely claiming the water bottles were “ACCC approved” — which was not true. The ACCC does not endorse or approve any products.
ACCC commissioner Liza Carver said the regulator was concerned by Mosaic Brands’ behaviour.
“Making false representations about the approval or endorsement of a product by any government authority misleads consumers and is likely to erode public trust in government authorities and certification marks.”
Carver added the penalties should serve as a warning to all businesses that making false or misleading representations about government approval for products can lead to enforcement action with “serious consequences”.
No consumer orders have been registered for either of these products on Mosaic Brands’ websites.
In May last year, the business paid $630,000 in penalties after the ACCC issued five infringement notices in respect of other false representations.
Mosaic Brands owns and operates Crossroads, Katies, Noni B, Rivers, Rockmans, Autograph Fashion, Beme, Millers, and W. Lane.