JENNY Craig has paid $37,800 to the Australian Competition and Consumer Commission for breaching the Australian Consumer Law with misleading television advertisements.
The ACCC issued three infringement notices to Jenny Craig for false or misleading representations in its advertisements aired from December 2017 to February 2018.
The representations include failure to disclose the additional purchases needed in its ‘lose 10kg for $10 program’ fee and failure to disclose the person featured in a testimonial video was a Jenny Craig employee.
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ACCC Commissioner Sarah Court said businesses must be transparent about any relationships with people providing testimonials.
“We were concerned that Jenny Craig’s advertisements may have misled consumers into thinking they could participate in a Jenny Craig program and lose 10kg for $10, when in reality customers would have to spend far more than that,” she said.
“Consumers must be informed when a testimonial is given by someone who is employed by the business and is not an independent reviewer.”
Ms Court said Jenny Craig’s refund requirements of three days notice and return within 10 business days in the original packaging also did not comply with the law.
“Businesses must ensure that their standard form membership agreements do not breach the Australian Consumer Law and that they accurately represent consumer guarantee rights,” she said.
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