Optometry retailer Oscar Wylee has been fined $3.5 million for wild exaggerations about its links to charitable causes, including that a few small donations meant it "works with" a charity.
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The Federal Court on Friday also ordered the retailer to run prominent messages on its website, and Facebook and Instagram pages informing consumers how it made misleading claims over five years.
Between 2014 and 2018, the retailer claimed to be closely affiliated with Rose Charities in a mission to "build sustainable eye care programs in Cambodia".
However, the extent of the partnership was so small and short Justice Anna Katzmann described it as "no relationship at all".
At the same time, Oscar Wylee was selling frames to consumers with the promise their purchase would result in another pair being donated to someone in need.
But the 3181 frames donated in the "pair for a pair" campaign were dwarfed by 328,010 sales.
Senior management was directly involved in offending conduct, which ended about the same time journalists from Insight Magazine began making inquiries in early 2019.
Justice Katzmann said Oscar Wylee "improperly exploited the good nature" of consumers.
"Oscar Wylee stood to profit from inducing consumers to purchase its products and still does," she said.
"It built its reputation by engaging in the contravening conduct, appealing to socially conscious consumers who wanted to support charitable causes through their purchasing behaviour.
"Its conduct was a betrayal of that promise."
The fine, consisting of $2.1 million for the frame claims and $1.4 million for Rose Charities statements, were too big to be seen as "an acceptable cost of doing business", the judge said.
Oscar Wylee, which admitted the breaches of Australian Consumer Law three weeks before trial, will be able to make the payments in four annual instalments.
It will also have to pay $30,000 of the consumer watchdog's legal costs and ensure any charitable claims until 2026 are well-documented and not false or misleading.
Justice Katzmann accepted the effect of Oscar Wylee's conduct was mitigated by donations of more than 300,000 frames to charities, hospitals and prisons, and of $80,000 to charitable causes since January 2019.
The company said it "sincerely regrets" breaching the law.
"Oscar Wylee has taken corrective action in response to the court action and in line with our ongoing commitment to corporate social responsibility," the company said in an email.
Australian Associated Press
