Australian fashion retailer Mosaic Brands faces legal scrutiny for failing to deliver “several hundred thousand products” to customers. Mosaic Brands specializes in women’s fashion and owns Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads, and Beme.
The Australian Competition and Consumer Commission (ACCC) is taking legal action against the brand for alleged breaches of the law. The case highlights the growing tension between consumer expectations and the logistical realities of e-commerce.
Mosaic Brands: What happened?
According to the ACCC, 26% of Mosaic Brands’ orders were dispatched from the warehouse more than 20 days after the purchase day. In some instances, customers waited more than 40 days for a delivery.
The company, however, commits to delivering items between two and 17 business days from the purchase date. As reported by Inside Retail, Mosaic Brands is denying the allegations.
A spokesperson said the ACCC claim is flawed and will thus be “vigorously” defended in court. “For the last two years, Mosaic Brands fulfillment rates have been over the government-mandated 95% benchmark for Australia Post.”
Meanwhile, the ACCC says it has received “hundreds of complaints about Mosaic Brands in relation to delivery delays.”
Frustrated customers
The period of investigation is between September 23, 2021, and March 31, 2022, meaning many customers didn’t receive their Christmas packages on time.
ACCC commissioner Liza Carver says: “Excessively late deliveries can be incredibly frustrating and inconvenient for consumers.”
During this period, Mosaic Brands misrepresented consumer guarantee rights on eight of its websites. The policy states that customers would only be eligible for a refund if requested within six months of the purchase date.
Carver explains that a shopper has rights under the Australian Consumer Law, such as being entitled to a free repair, refund, or replacement. “These legal rights are called ‘consumer guarantees’ under the Australian Consumer Law and they don’t have a specific expiry date.”
Legal recourse
The ACCC says it is “seeking declarations, injunctions, and penalties, as well as costs and other orders, including that Mosaic Brands implement a consumer law compliance program.”
It’s not the first time the company has come under fire.
In September 2022, Mosaic Brands paid $266,400 in penalties for misleading representations in promoting an Autograph Fashion face mask on its website, and a hot water bottle under the Katies brand.
Prior to that, the ASX-listed company paid penalties totaling $630,000 for breaching the law in its promotion of pandemic-related ‘Health Essential Products.’
At the time, the ACCC issued five infringement notices:
- Air Clean hand sanitizer: Contains 70% alcohol. A sample tested by the ACCC contained 17%.
- Miaoyue hand sanitizer: Contains 75% alcohol. A sample contained 58%.
- Velcare-branded hand sanitizer: Marketed as ‘WHO-approved’ when they were not.
- KN95 Kids Safety Face Masks: Marketed as ‘CE/FDA certified’ when they were not.
- KN 95 Adult Face Masks: ‘Non-refundable’ – consumers have a statutory right to a refund under the consumer guarantee remedies.
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
