The ACCC is taking an online florist and gift retailer to the Federal Court, alleging the company published misleading online star ratings and price representations.<\/p>\n
Bloomex receives customers\u2019 orders through its website and over the phone, and uses warehouses in New South Wales, Queensland, Victoria, and Western Australia to prepare and deliver orders across Australia.<\/p>\n
Since at least 2019, Bloomex displayed products on its website with a star rating out of 5 and a statement that the rating was based on customer reviews. The ACCC alleges these ratings were misleading as Bloomex had not incorporated any customer feedback into those star ratings since 2015 and, in some instances, included ratings from customers who purchased products before 2015 from Bloomex\u2019s other businesses located outside of Australia.<\/p>\n
\u201cWe allege Bloomex\u2019s product star ratings were misleading because they were several years out of date and included the experiences of customers that had likely never purchased from Bloomex\u2019s Australian business,\u201d ACCC Commissioner Liza Carver said.<\/p>\n
\u201cOnline reviews and product ratings are an important tool that consumers rely on when making purchasing decisions. It is essential businesses ensure reviews are complete, accurate and current.\u201d<\/p>\n
The ACCC also alleges Bloomex made misleading price representations on its website.<\/p>\n
From at least February 2019, products across Bloomex\u2019s website displayed two prices: a higher \u2018strikethrough\u2019 price and a cheaper price. Some products were also accompanied by a \u201c50% off\u201d or \u201chalf price\u201d statement.<\/p>\n
The ACCC alleges that Bloomex did not ordinarily offer products for sale at the higher \u2018strikethrough\u2019 price and that the discounts displayed on the website were misleading as they were not genuine.<\/p>\n
\u201cSale prices can create a sense of urgency that motivates a consumer to make a purchase. It is misleading to represent that a price is discounted when that is not genuinely the case,\u201d Ms Carver said.<\/p>\n
The ACCC also alleges that since August 2022, Bloomex did not adequately disclose that it imposed a mandatory surcharge of between $1.95 to $4.95 on orders made via its website.<\/p>\n
Prior to the final stage of the purchase, the cost of the product alone without the surcharge was displayed as the \u2018total price\u2019 even though the additional surcharge would also have to be paid by the customer.<\/p>\n
\u201cBusinesses must display the total price of a product or service, including any surcharges when displaying prices. If a business displays a price for just one part of a product, the total price must be also be displayed at least as prominently as the partial price,\u201d Ms Carver said.<\/p>\n
\u201cThis year we began a focus on misleading and deceptive online advertising and have been very concerned with what we have seen in the online florist industry. We are warning all online florists to make sure they are meeting their obligations under the Australian Consumer Law.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The ACCC is taking an online florist and gift retailer to the Federal Court, alleging the company published misleading online star ratings and price representations. Bloomex receives customers\u2019 orders through its website and over the phone, and uses warehouses in New South Wales, Queensland, Victoria, and Western Australia to prepare and deliver orders across Australia. […]<\/p>\n