Emma Sleep Fined $15M for Misleading Sale Price Advertising
Summary
The Federal Court ordered Emma Sleep Pty Ltd and Emma Sleep Southeast Asia Inc to pay a total of $15 million in penalties ($7.5 million each) for misleading representations about sale prices of mattresses, bed frames, pillows, and accessories between 15 June 2020 and 27 March 2023. Of the 74 products advertised with strikethrough prices and percentage discounts, 58 had never been offered at the higher price and 16 had been offered at that price only rarely. The Court found the conduct arose from a deliberate marketing strategy and that senior management turned a blind eye to whether it violated Australian Consumer Law.
E-commerce and direct-to-consumer retailers who advertise strikethrough prices or limited-time discounts should review whether their 'was' prices reflect genuine prior offers. The ACCC treated countdown timers that reset as an aggravating factor creating artificial urgency, a practice the regulator has flagged across multiple enforcement actions. Companies using similar urgency-triggering tactics in email, SMS, or social media campaigns should verify that discount claims are substantiated by actual prior pricing history.
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What changed
The ACCC's December 2023 proceedings against Emma Sleep culminated in a Federal Court order imposing $15 million in aggregate penalties for false and misleading representations under the Australian Consumer Law. The misconduct involved advertising strikethrough prices alongside purchase prices on all 74 products, with 58 products never having been offered at the higher price and 16 offered only rarely. Emma Sleep also used countdown timers that reset during sale campaigns and phrases such as 'Ending Soon' to create a false sense of urgency. The Court found the conduct was deliberate and that senior management knowingly disregarded compliance obligations.
E-commerce retailers and direct-to-consumer brands that advertise percentage-off or limited-time discounts should audit their pricing representations: the ACCC treated the absence of a genuine prior higher price as a clear consumer law violation. The order also requires Emma Sleep to publish corrective notices and implement a compliance program, signaling that courts may impose affirmative obligations beyond monetary penalties for deliberate misleading conduct.
Penalties
AUD $15,000,000 total ($7,500,000 Emma Sleep Pty Ltd + $7,500,000 Emma Sleep Southeast Asia Inc)
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Apr 24, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Date
24 April 2026
Topics
Advertising and promotions Buying and selling products and services Compliance and enforcement The Federal Court has ordered Emma Sleep Pty Ltd and Emma Sleep Southeast Asia Inc to pay a total of $15 million in penalties for making false or misleading representations about the sale price of mattresses, bed frames, pillows, and accessories.
Emma Sleep Pty Ltd admitted in June 2025 that it made false or misleading representations by advertising all 74 of its products online showing a purchase price alongside a higher price with a ‘strikethrough’, and displaying a percentage discount (such as ‘ 50% OFF ’) or indicating the sale price would represent a certain saving to the consumer (such as ‘ Save as much as $3,531 ’).
In fact, of the 74 products, 58 products had not previously been for sale at the strikethrough price or without the discount or savings. The remaining 16 products had almost never been for sale at the strikethrough price or without the discount or savings.
Emma Sleep Pty Ltd also admitted that it had made misleading representations that the discount prices were available for a limited time, by using a countdown timer that would reset during a sale campaign, and using phrases such as “Ending Soon” when the products continued to be advertised at the same or similar discount.
The Court found that the conduct arose out of a deliberate marketing strategy and that senior management turned a blind eye to whether it contravened the Australian Consumer Law. The conduct was not inadvertent or caused by a system error.
“When marketing their products companies and their executives must ensure they do so honestly, responsibly and in compliance with the law,” ACCC Commissioner Luke Woodward said.
This conduct occurred between 15 June 2020 and 27 March 2023.
The Federal Court also found that Emma Sleep Southeast Asia Inc engaged in the same conduct.
“The Emma Sleep companies breached the Australian Consumer Law by making false or misleading representations which gave consumers the impression they were getting a bargain,” ACCC Commissioner Luke Woodward said.
“The ACCC was concerned that Emma Sleep's conduct created a false sense of urgency about the offer by using a countdown timer that reset itself, and by making false claims suggesting to consumers that the sale was ending soon, which to may have pressured them into making a rushed purchase decision.”
The Court ordered Emma Sleep Pty Ltd to pay a penalty of $7.5 million, and Emma Sleep Southeast Asia Inc to pay $7.5 million.
The Emma Sleep website was visited more than 4.9 million times in the relevant period, and Emma Sleep’s social media posts had more than 10 million views. Emma Sleep also sent emails to more than 4 million consumers and SMS messages to nearly half a million individuals containing the misleading sales representations.
Nearly every sale made by Emma Sleep during the relevant time was advertised with a savings representation, leading to over $134 million in revenue, and involving over 243,000 individual products sold.
The Court also ordered that Emma Sleep publish corrective notices and implement a compliance program.
Image of Emma Sleep website showing countdown timer and alleged discount pricing
Example of Emma Sleep social media advertising
Background
Emma Sleep GmbH is a German bedroom furniture supplier based in Frankfurt that commenced trading in 2013. Emma Sleep GmbH operates in over 30 countries.
Emma Sleep Pty Ltd is a subsidiary of Emma Sleep GmbH which operates in Australia as a direct-to-consumer supplier of ‘bed-in-a-box products’, while also supplying beds and frames and other sleep accessories.
Emma Sleep Southeast Asia Inc (formerly Bettzeit Southeast Asia) is also a subsidiary of Emma Sleep GmbH which operates in the Philippines.
The ACCC instituted proceedings against Emma Sleep GmbH, Bettzeit Southeast Asia and Emma Sleep Pty Ltd on 14 December 2023.
Emma Sleep advertises its products on its website, its Facebook and Instagram pages, its comparison website https://www.top5bestmattress.com.au, TV, radio, print media, email, SMS and through third-party retailer websites such as Woolworths Marketplace and Bunnings Marketplace. These websites were visited more than 6 million times in the relevant period.
Release number
37/26
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