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Reebok Australia ordered to pay $350,000 for false and misleading representations

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By Kaye Griffiths, Senior Associate, MST Lawyers

Last month, the Federal Court ordered Reebok Australia Pty Ltd to pay a penalty of $350,000 for making false and misleading representations about the benefits of Reebok “EasyTone” shoes.  The order, made by consent, came as a result of proceedings brought by the Australian Competition and Consumer Commission (“ACCC”) for alleged breaches of the Australian Consumer Law (“ACL”).

The Court found that Reebok’s representations made on its product packaging and in-store that its shoes would bring additional health benefits to normal walking shoes were false and misleading and Reebok had no reasonable grounds for making the representations.

Reebok was ordered to provide a partial refund to affected consumers and set up an implementation and compliance program.

This is yet another case brought by the ACCC in relation to “credence claims”, an area which the ACCC has and will continue to give heavy focus.

Breaches of the ACL are a serious matter, particularly for manufacturers and retailers and it is essential that they obtain legal advice about making claims in relation to their products. 

MST’s dispute resolution and litigation lawyers have extensive experience in advising and handling cases (for both claimants and defendants) where it is alleged that there has been some misleading and deceptive conduct or false representation in breach of the ACL.  We are also experienced in dealing with and responding to action taken by the ACCC.

For further information please contact our Dispute Resolution & Litigation team by email litigation@mst.com.au or by telephone +61 8540 0200.