Bedding supplier Emma Sleep has been fined $15 million for making misleading representations about the sale price of its products.

Between June 15, 2020, and March 27, 2023, the company advertised online all 74 of its products, including mattresses, bed frames, pillows, and accessories, showing a purchase price alongside a higher price with a ‘strikethrough’, and displaying a percentage discount.

In fact, 58 products had not previously been for sale at the strikethrough price or without the discount or savings. The remaining 16 products had almost never been for sale at the strikethrough price.

The Australian Competition and Consumer Commission (ACCC) started court proceedings against Emma Sleep and its subsidiaries in late 2023. 

According to the ACCC, nearly every sale made by Emma Sleep during the relevant time was advertised with a savings representation, leading to over $134 million in revenue, and involving over 243,000 individual products sold. 

Last June, the company admitted it made such false or misleading representations. The firm also admitted to misleading consumers by showing that the discount prices were available for a limited time, while the products continued to be advertised at the same discount after the periods ended.

The Federal Court found that the conduct arose out of a deliberate marketing strategy and that senior management turned a blind eye to whether it contravened the Australian Consumer Law. It added that the conduct was not inadvertent or caused by a system error. 

The court ordered Emma Sleep Pty Ltd to pay a penalty of $7.5 million, and Emma Sleep Southeast Asia Inc to pay $7.5 million. 

The company was also required to publish corrective notices and implement a compliance program. 

Emma Sleep GmbH is a German bedroom furniture supplier based in Frankfurt that commenced trading in 2013. Emma Sleep Pty Ltd is a subsidiary of Emma Sleep GmbH in Australia, while Emma Sleep Southeast Asia Inc is a subsidiary in the Philippines.