The Federal Court has ordered Emma Sleep Pty Ltd and Emma Sleep Southeast Asia Inc to pay a total of $15 million in penalties for making false or misleading representations about the sale price of mattresses, bed frames, pillows, and accessories.
Emma Sleep Pty Ltd admitted in June 2025 that it made false or misleading representations by advertising all 74 of its products online showing a purchase price alongside a higher price with a ‘strikethrough’, and displaying a percentage discount (such as ‘50% OFF’) or indicating the sale price would represent a certain saving to the consumer (such as ‘Save as much as $3,531’).
In fact, of the 74 products, 58 products had not previously been for sale at the strikethrough price or without the discount or savings. The remaining 16 products had almost never been for sale at the strikethrough price or without the discount or savings.
Emma Sleep Pty Ltd also admitted that it had made misleading representations that the discount prices were available for a limited time, by using a countdown timer that would reset during a sale campaign, and using phrases such as “Ending Soon” when the products continued to be advertised at the same or similar discount.
The Court found that the conduct arose out of a deliberate marketing strategy and that senior management turned a blind eye to whether it contravened the Australian Consumer Law. The conduct was not inadvertent or caused by a system error.
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