Online florist Meg’s Flowers fined $1 million over false ‘local florist’ claims
Brisbane floristry business Meg’s Flowers will pay $1 million in penalties after falsely advertising itself as a ‘local’ florist in locations across Australia.
Brisbane floristry business Meg’s Flowers will pay $1 million in penalties after falsely advertising itself as a ‘local’ florist in locations across Australia.
The Australian Competition and Consumer Commission (ACCC) on Thursday said the Federal Court ordered Meg’s Flowers to pay significant penalties for making misleading representations to consumers.
The consumer watchdog launched federal court proceedings against Meg’s Flowers in May 2023, alleging it falsely branded itself as a ‘local’ business in 156 location-specific websites and 7,462 Google ads between 2019 and early 2023.
Those websites allegedly bore reference to specific suburbs, and phrases like “It’s the local approach” and “our fantastic local service”, despite Meg’s Flowers having no public shopfronts.
This caused consumers making purchases online to believe their orders were being packed and delivered by local florists, instead of a network of corporate warehouses or subcontractors.
In a statement, ACCC commissioner Liza Carver said those websites and ads denied consumers the ability to make an informed decision, likely deprived local brick-and-mortar florists of business, and amounted to a breach of Australian Consumer Law.
“We remind businesses in all industries that the claims they make about their products and services, including claims about the location of their business, must be accurate and not mislead consumers,” she said.
Meg’s Flowers, owned by Flowerscorp, made admissions in the case.
It will enter a compliance program, post a corrective notice on its website, and contribute to the ACCC’s court costs.
SmartCompany has contacted Meg’s Flowers for comment.
The Meg’s Flowers fine is the latest development in a years-long ACCC crackdown on florists falsely presenting themselves as local businesses.
The watchdog said it would keep a close eye on the sector in 2022, resulting in court-enforceable undertakings and agreements to take down potentially misleading websites.
Online florist Bloomex was handed a $1 million fine earlier this year, after the ACCC accused the business of misleading discount offers and star ratings on its website.
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