UGG Boots from Australia? ACCC brings action to stop false "Australian Made" claims

Posted by Nicholas Stewart

Image courtesy of UggBoy♥UggGirl

It's Australian winter time. That means those of us living in Australia's southern regions who forget how cold it can get in winter suffer from frozen feet when leaving our warm beds each morning. Ugg Boots (Uggs) are thought to be a good remedy, and if you're a teenage girl in Bondi, maybe even a fashion accessory for visiting your local video store.

Uggs are considered to have originated in Australia. With the explosion of online retailing, like many other products, they are available online. Consumers may readily believe that the Uggs they are buying from online stores such as www.australiauggbootssale.com.au are made in Australia.

In Australian Competition & Consumer Commission v Marksun Australia Pty Ltd [2011] FCA 695, Marksun Australia Pty Ltd (Marksun), an online retailer of Uggs who operated the www.australiauggbootssale.com.au website (and several others), was found by Gilmour J to have 'structured its marketing to benefit from the perception of an iconic Australian product being “Made in Australia”, when it is actually made in China'. His Honour was of the opinion that deterrence in this case was 'a significant factor, particularly given the involvement of promotion and sale of products over the Internet'.

Rightly so. The "Australian Made" logo is a registered certification trade mark, licensed to companies whose products are registered with the Australian Made, Australian Grown Campaign. Many Australian consumers are influenced by retailers whose marketing efforts seek to associate their products with the "Made in Australia" image. Marksun was penalised heavily for its conduct – pecuniary penalties totalling $430,000 were ordered as well as an injunction and corrective advertising.

So rug up this winter, and if you're making "Australian Made" claims, make sure you comply with the law.

Partner: Paul Kallenbach