Mosaic Brands is facing legal action for allegedly breaching the Australian Consumer Law by failing to deliver “several hundred thousand products” to its customers within advertised timeframes.
The Australian Competition and Consumer Commission commenced proceedings in the Federal Court alleging that the fashion retailer dispatched over 26 per cent of orders from its warehouses as long as 20 days – and in some cases more than 40 days – after the purchase date.
This is in contrast to the company’s committed delivery timeframe promoted online of two to 17 business days from the purchase date.
The delayed deliveries subject to the court action occurred between September 23, 2021 and March 31, 2022. Mosaic owns apparel brands including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads and Beme.
“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,” ACCC commissioner Liza Carver said.
The ACCC also alleges that between September 23, 2021 and at least October 23, 2022, Mosaic Brands misrepresented consumer guarantee rights on eight of its websites, stating that consumers were only eligible for a refund for a faulty product if they requested 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,” Carver said.
The ACCC is seeking declarations, injunctions, and penalties including the company’s implementation of a consumer law compliance program.
The court case promises to be a headache for incoming CEO Erica Berchtold whose appointment was announced last week.
Meanwhile, a Mosaic Brands spokesperson denied the accusations.
“Mosaic Brands believes the ACCC claim is flawed, and we will be vigorously defending it in court,” a spokesperson said.
“For the last two years Mosaic Brands fulfilment rates have been over the government-mandated 95 per cent benchmark for Australia Post.”
