HSK United Pty Ltd, which operates the websites Pain Free Aussies and Modern Aussies, has paid $79,200 in penalties after the ACCC issued it with four infringement notices for alleged breaches of the Australian Consumer Law.
The ACCC alleges that on both websites, HSK used misleading strikethrough pricing and made misleading statements in its returns policies.
“Online businesses, like bricks and mortar stores, must comply with the Australian Consumer Law and not mislead consumers,” ACCC Commissioner Luke Woodward said.
Allegedly misleading strikethrough prices
The ACCC investigated HSK following consumer complaints and later issued two infringement notices for alleged misleading pricing practices.
HSK advertised products on both its websites with strikethrough pricing, where a higher price is crossed out and replaced with a lower price. However, the ACCC’s investigation found that certain products on the websites had not been sold at the higher ‘strikethrough’ price since at least 1 January 2025.
“Consumers who bought products from the websites were likely to have been misled into believing they were receiving a genuine discount, when this wasn’t the case,” Mr Woodward said.
“Sales and claimed savings can tempt consumers to buy products they may not otherwise purchase. These types of misleading claims also disadvantage competitors that are making genuine claims about the prices of their products.”
Image of the “Instant Smooth Hair Eraser Pain Free” product on the Modern Aussies website showing the strikethrough price
Image of the “Aussie Ice Cooling Calming Blanket” product on the Pain Free Aussies website showing the strikethrough price
Allegedly misleading claims consumers could not get a refund for certain sales
The ACCC also issued HSK with two infringement notices over allegedly misleading statements made in its returns policy on each website. The policy stated that clearance items and items purchased with store credits were non-refundable, when in fact the consumer guarantees in the Australian Consumer Law provide for refunds in certain situations where goods are faulty, including when the goods were clearance items or purchased using store credits.
“The ACCC was concerned that these statements may have led consumers to believe they were not entitled to refunds for clearance items and purchases made with store vouchers in any circumstances, when they may have been entitled to a refund under the consumer guarantees. These statements could have discouraged consumers from seeking a refund that they were entitled to because the product was faulty,” Mr Woodward said.
In response to the ACCC’s concerns, HSK improved its internal compliance processes and made changes to both websites, including by updating its returns policies.
Background
HSK is based in Melbourne and owns Pain Free Aussies, which sells health and therapeutic products online, and Modern Aussies, a website selling personal care and household products.
Note
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain consumer protection provisions in the Australian Consumer Law.
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Australian Consumer Law.
