Emma Sleep Pty Ltd has admitted to making misleading representations regarding the sale prices of its mattresses, bed frames, pillows, and accessories. The Federal Court found that the company's related entity, Bettzeit Southeast Asia Inc., also engaged in similar conduct.

Between June 15, 2020, and March 27, 2023, Emma Sleep advertised 74 products online, showcasing a higher price with a 'strikethrough' next to a lower sale price, often accompanied by claims of significant discounts. However, 58 of these products had never been sold at the strikethrough price, while the remaining 16 had rarely been available at that price.

Additionally, Emma Sleep misled consumers by suggesting that sale prices were only available for a limited time, using countdown timers to create a false sense of urgency. In reality, these timers reset, and the products continued to be sold at the same or similar discounts after the countdown ended.

ACCC Deputy Chair Catriona Lowe emphasized the importance of accurate sales claims, stating that misleading advertising not only deceives customers but also gives unfair advantages to companies over their competitors. The ACCC has also pursued action against Emma Sleep GmbH, the German parent company, but the court dismissed allegations against it.

The ACCC is seeking various legal remedies, including declarations, penalties, and injunctions, with a hearing to determine the penalties scheduled for a later date. The ACCC plans to continue monitoring promotional practices in the retail sector, focusing on misleading pricing strategies as part of its Compliance and Enforcement Priorities for 2025-26.