Online florist Bloomex is headed to court, with the ACCC alleging the company published misleading online reviews and pricing on its website.
On Friday, the Australian Competition & Consumer Commission (ACCC) announced it had commenced proceedings in the Federal Court against Bloomex for “allegedly publishing misleading online star ratings and price representations”.
The ACCC alleges that 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 further 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’s other businesses located outside of Australia.
The ACCC also alleges Bloomex made misleading price representations on its website. According to the watchdog, from at least February 2019, products across Bloomex’s website displayed two prices. One of those prices was a higher ‘strikethrough’ price and the other a cheaper price. The ACCC said some products were also accompanied by a “50% off” or “half price” statement.
The ACCC alleges, however, that the strikethrough price wasn’t its regular price, thus misleading consumers into thinking they were getting a deal.
Further allegations made against Bloomex by the ACCC include 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. Prior to the final stage of the purchase, the cost of the product alone without the surcharge was displayed as the ‘total price’ even though the additional surcharge would also have to be paid by the customer, the ACCC said.
In case you’re unfamiliar, Bloomex is an online florist and gift retailer that receives customers’ orders through its website and over the phone, and uses warehouses in New South Wales, Queensland, Victoria and Western Australia to distribute the orders.
“We allege Bloomex’s product star ratings were misleading because they were several years out of date and included the experiences of customers that had likely never purchased from Bloomex’s Australian business,” ACCC commissioner Liza Carver said.
“Sale 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,” Carver added on the pricing allegations.
She said in 2022, the ACCC placed a heavy focus on misleading and deceptive online advertising and the obligations companies have under the Australian Consumer Law.