In a robust move to safeguard consumer rights, the Australian Competition and Consumer Commission (ACCC) has brought federal court proceedings against Meg's Flowers, an online florist, on charges of duping consumers with misleading representations.
In a robust move to safeguard consumer rights, the Australian Competition and Consumer Commission (ACCC) has brought federal court proceedings against Meg's Flowers, an online florist, on charges of duping consumers with misleading representations.
Owned by Flowerscorp, Meg's Flowers operates as an e-commerce platform, taking orders for floral and other gift products either through location-specific websites or through a call centre based in Brisbane. The company, devoid of any physical storefronts, carries out its order fulfillment through a network of subsidiaries.
The ACCC alleges that, from January 1, 2019, to February 10 of the previous year, Meg's Flowers put forth a façade of being a local florist, through their presence on 156 location-specific websites and 7462 Google ads. The online retailer purported to deliver flowers across various Australian suburbs, an assertion that falls far from the truth. In reality, Meg's Flowers only distributes its floral products via its corporate warehouses and subcontractors, with no local florists in its supply chain.
Scrutiny from the regulator reveals that seven of Meg Flower's websites painted a misleading picture of locality. The websites had references to specific suburbs or towns in the domain name, geographical details about the said suburb, and photographs of a store featuring a branded 'Meg's Flowers' scooter. Phrases such as "It's the local approach," "our fantastic local service," or "the finest quality flowers in (a suburb or town name)" were woven into the site's narrative to further reinforce the image of a local florist.
The accusations don't stop there. Google ads generated by Meg's Flowers contained URLs referring to the consumer's searched location, alongside phrases like "Same day local flower delivery", enhancing the perception of locality and speedy delivery.
Liza Carver, ACCC commissioner, has put a spotlight on the case by emphasizing the consumer preference for local businesses. Many consumers look to support their community and seek fresh, locally-sourced flowers. "We are taking this court action because we allege Meg's Flowers misled consumers into thinking they were ordering flowers from a local florist when they were actually dealing with a national business and the orders were often fulfilled from a corporate warehouse outside of that suburb," she said.
Sources: https://internetretailing.com.au/megs-flowers-fined-for-misleading-representations/