Yahoo Finance Lorna Jane pays $5m for shocking ‘anti-virus activewear’ claims
The Federal Court has ordered Lorna Jane to pay $5 million in penalties for making false and misleading representations to consumers.
The Federal Court found the company had engaged in misleading conduct designed to mislead the public, in connection with its “LJ Shield Activewear”.
Lorna Jane admitted it falsely represented to consumers that its LJ Shield Activewear “eliminated”, “stopped the spread” and “protected wearers” against “viruses including COVID-19”.
The misleading representations were made on in-store signage, on its website, on Instagram, in emails to consumers and in media releases.
The claims made by Lorna Jane about its LJ Shield Activewear included “Cure for the Spread of COVID-19? Lorna Jane Thinks So” and “LJ SHIELD is a groundbreaking technology that makes transferral of all pathogens to your Activewear (and let’s face it, the one we’re all thinking about is COVID-19) impossible by eliminating the virus on contact with the fabric”.
ACCC chair Rod Simms slammed the brand’s claims and said the promotion preyed on consumers’ fears.
“The whole marketing campaign was based upon consumers’ desire for greater protection against the global pandemic,” Simms said.
“The $5 million in penalties imposed by the Court highlights the seriousness of Lorna Jane’s conduct, which the judge called ‘exploitative, predatory and potentially dangerous’.”
Lorna Jane also admitted that it had falsely represented it had a scientific or technological basis for making the ‘anti-virus’ claims about its LJ Shield Activewear, when no basis existed.
The company admitted that it didn’t have any scientific testing results showing the effectiveness of LJ Shield Activewear on viruses, including COVID-19.
Lorna Jane founder called out
The company admitted to the court that director and chief creative officer, Lorna Jane Clarkson, was heavily involved in the creation and marketing of the campaign.
She was involved in crafting the words and developing the imagery that they used in the campaign and personally made false statements in media releases and an instagram video.
The judge said he had taken into account that “the conduct emanated from a high managerial level within the company” and “was directed by Ms Clarkson”.
“This was dreadful conduct as it involved making serious claims regarding public health when there was no basis for them,” Simms said.
“This type of conduct is particularly harmful where, as here, consumers cannot easily check or monitor the claims made.”
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