ACCC Investigation Reveals Consumer Law Breach

Online food retailer EasyMeals by Flavour Makers Pty Ltd (EasyMeals) has provided a court enforceable undertaking to the Australian Competition and Consumer Commission in relation to its conduct in the marketing and supply of its pre-packaged meals.

The ACCC’s investigation was prompted by a complaint from Anglicare NT’s Money Matters Program, on behalf of a newly arrived migrant who was not fluent in English. The consumer had received telemarketing calls from EasyMeals, during which EasyMeals represented that its meals would be suitable for the consumer’s diabetes.

Anglicare NT’s Money Matters Program is a free and confidential advocacy and support service for people in financial difficulty. Financial Counsellors assist people to understand and prioritise debt, develop money plans and advocate and negotiate on their behalf.

In this particular case, EasyMeals admitted it contravened the Australian Consumer Law (ACL) by:

• representing that EasyMeals’ meals were suitable for all diabetics, when in fact, the suitability of the meals for diabetics depends upon the individual diabetic, their diet, and the severity of their condition;
• making false or misleading representations that consumers could get a free meal simply by providing their contact information, when consumers could only obtain a free meal if they purchased a meal from EasyMeals first; and
• failing to provide customers who had received unsolicited telemarketing calls with the information required by the unsolicited consumer agreements provisions of the ACL.

Following ACCC engagement, EasyMeals refunded the consumer; undertook an internal investigation aimed at implementing corrective measures; cooperated with the ACCC’s investigation; and agreed to rectify its practices to ensure future compliance with the ACL.

According to the ACCC, consumer protection issues effecting on vulnerable and disadvantaged consumers, with a particular focus on consumers who are newly arrived in Australia, is a current enforcement and compliance priority.