Many consumers are enticed by quick-fix weight loss programs – especially when they are advertised at affordable prices such as Jenny Craig’s “Lose 10kg for $10” advertisements.
However, the ACCC has penalised Jenny Craig to the amount of $37,800 for alleged false or misleading representations in respect of these ads. The ads are alleged to be misleading to consumers as they suggest that they can participate in the program and lose 10kg for $10, when they are actually required to make additional purchases on food.
It is important to be careful about how you word your advertisements – a catchy slogan or headline can be a great way to capture the attention of consumer but businesses must ensure that the overall impression of the advertisement is not misleading.
Other important take-aways from this case are:
- If you feature an employee providing a testimonial in your advertising, ensure that you disclose that the person is an employee; and
- Ensure that your contracts with customers don’t proport to limit customer’s rights of return – it is best to use language that refers to a customer’s rights under the consumer guarantees rather than specifying deadlines for customers to return goods (particularly faulty goods). Under the consumer guarantees, customers are entitled to a remedy for faulty goods for a reasonable time period.
If you need assistance in your advertising or marketing sign-off or if you would like to have your contracts reviewed for compliance with the law, do not hesitate to contact me at or give me a call on 1300 033 934 for a no-obligation quote.