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Major firms shamed in Shonky Awards

Major firms shamed in Shonky Awards

The likes of NAB, Coca-Cola and Arnott’s Tiny Teddies were named and shamed at CHOICE’s 10th annual Shonky Awards.

Eight companies and industries made CHOICE’s roll of dishonor list:

NAB
With one in five Australians living off a credit card to get through to payday, and many people carrying a balance forward, consumers need banks to act responsibly and pass on official interest rate cuts to credit card customers.

CHOICE stated that not only did NAB fail to pass the full 2.5% cut since 2011, it decided to raise rates for its “low” rate card customers from 12.99% to 13.99%.

Also read: NAB launches massive $5.5b raising

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Coca-Cola
The soft drink giant gave an “unrestricted gift” to the Global Energy Balance Network, a front organisation dedicated to using “energy balance” to end obesity.

CHOICE believe funding an organisation that suggests “we should keep drinking sugary drinks and just exercise more is a load of fizz”.

IKEA
When CHOICE looked at the “leather sofas and armchairs” section of IKEA’s Australian website, it was surprised to find “polyester and polyurethane couches masquerading as the real thing”.

“IKEA has real hide serving up plastic couches in the ‘leather’ section of its website,” CHOICE said.

Also read: Swedish Ikea store stops knife sales after attack

Kleenex
Kleenex claims its kids flushable cleansing cloths disintegrate “like toilet paper”, a claim that CHOICE disputes: “Wipe-related damage to sewerage systems is estimated at $15 million annually.

"Clearly, Kleenex flushable wipes aren’t sewer-friendly, and we think the ‘flushable’ claim misleads consumers.”

Samsung
CHOICE stated that Samsung’s “questionable recall efforts around a line of faulty top loader washing machines” witnessed more than 224 incidents, including 76 fires, and there are still around 58,000 potential fire hazards in homes across Australia.

The payday lending industry
Payday lenders prey on some of the most vulnerable consumers, according to CHOICE.

“The fees, extra charges and cripplingly high interest rates are the stuff of Hollywood horror films,” CHOICE said.

“In one recent case, Cash Converters irresponsibly issued a pensioner 63 loans over six years.

“We think payday lenders are a school of predators, telling consumers to take out high interest loans so they can devour them in frenzy of debt. It’s time the bite was put on this industry.”

Also read: Payday lenders under fire

Nanosmart
CHOICE challenged the claim of Nanosmart who stated their laundry balls allow you to wash without detergent.

In fact, CHOICE tests found water alone did a better job than the Nanosmart laundry balls.

"At $50 a pop, they’ll clean out your wallet long before they clean your clothes,” CHOICE said.

Arnott’s Tiny Teddies
CHOICE said Arnott’s created its own “school canteen – meets amber guidelines” logo to help consumers make easier and more informed choices.

However, Arnott’s are using the logo to give a “health halo” to Tiny Teddies littered with 100s and 1000s, which are classified as confectionery and not recommended in the national guidelines for canteens.

“We don’t think Arnott’s should be flogging confectionery to kids claiming it’s healthy,” CHOICE said.