Activewear brand blames supplier for $5 million fine
Australia’s federal court has issued yoga and activewear brand Lorna Jane with a fine of five million Australian dollars “for making false and misleading representations to consumers in connection with the promotion and supply of its LJ Shield Activewear”.
In 2020, the Australian Competition & Consumer Commission (ACCC) expressed concern about the brand’s promotion of its LJ Shield Activewear. The brand presented the products as having the capability to stop the spread of covid-19 thanks to what it called “ground-breaking technology” that would “eliminate the virus on contact with the fabric”.
After the federal court imposed the fine on July 23, ACCC chair, Rod Sims, said: “Lorna Jane falsely promoted its LJ Shield Activewear as eliminating or providing protection from covid amidst growing numbers of cases in Australia. The whole marketing campaign was based upon consumers’ desire for greater protection against the global pandemic. The $5 million in penalties imposed by the Court highlights the seriousness of Lorna Jane’s conduct, which the judge called ‘exploitative, predatory and potentially dangerous’.”
In a media statement, Lorna Jane accepted the federal court ruling. It said: “Some representations made to customers in the marketing of the LJ Shield product were misleading. This was never our intention, and we apologise wholeheartedly to our customers.”
At several points in the statement, Lorna Jane blamed a supplier. Chief executive, Bill Clarkson, said: “A trusted supplier sold us a product that did not perform as promised.” And founder, Lorna Jane Clarkson (pictured), said: “The company was let down by its supplier and I feel that I was let down personally by people I trusted. I have spent 35 years building a business that supports and empowers women; I would never intentionally put that at risk.”
It did not name the supplier in question, but reports at the time of ACCC’s original complaint said the coating sprayed on the fabric for LJ Shield was from Fuze Biotech. Fuze Biotech has not yet made any public statement in connection with the Lorna Jane court decision.
