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March, 2024

Noni B, Rivers, Katies parent company faces legal proceedings over alleged consumer law breaches

The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against Mosaic Brands in the Federal Court over the company’s alleged failure to deliver several hundred thousand products to customers within the advertised delivery timeframes.

The company, which owns several popular brands including Noni B, Rivers, Katies, Rockmans, Millers, Autograph, Beme, Crossroads and W. Lane, has previously paid a total of $896,400 in penalties following ACCC infringement notices in May 2021 and September 2022.

The alleged breaches occurred between 23 September 2021 and 31 March 2022. During this period, over 26% 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.

ACCC Commissioner Liza Carver said the ACCC has received hundreds of complaints about Mosaic Brands in relation to delivery delays.

“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.”

Mosaic Brands, a publicly listed company specialising in women’s fashion, has approximately 7.8 million online members and around 804 stores across Australia.

The ACCC also alleges that Mosaic Brands misrepresented consumer guarantee rights on eight of its brand websites between 23 September 2021 and at least 23 October 2022.

“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,” said Carver. “These legal rights are called ‘consumer guarantees’ under the Australian Consumer Law and they don’t have a specific expiry date.”

The ACCC is seeking declarations, injunctions, penalties, costs and other orders, including that Mosaic Brands implement a consumer law compliance program.