Weight loss company Jenny Craig has been fined more than $37,000 for their ‘misleading’ “10kg for $10” television advertisements.
The Australian Consumer watchdog slapped the company with three infringement notices for alleged “false or misleading representations in breach of the Australian Consumer Law.”
They claim Jenny Craig advertised that people could lose up to 10kg of weight for a $10 program fee, without adequately disclosing customers also had to purchase food at an additional cost.
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“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 had to spend far more than that,” ACCC Commissioner Sarah Court said.
The advertisements aired on television from December 2017 to February 2018.
The ACCC said Jenny Craig also failed to disclose that a person featured in an online testimonial video for its services was actually a Jenny Craig employee.
“Businesses need to be transparent about any relationships with people providing a testimonial,” Ms Court said.
“Consumers must be informed when a testimonial is given by someone who is employed by the business, and is not an independent reviewer.”
The watchdog also issued an infringement notice for the company’s membership agreement form in relation to refunds for faulty products.
“Jenny Craig’s standard form membership agreement represented that customers’ refund rights in relation to faulty products required the customer to notify Jenny Craig within three days and return faulty products within 10 business days in their original packaging,” the ACCC said.
“If a product fails to meet the consumer guarantees under the Australian Consumer Law, people are automatically entitled to a remedy, even if they did not comply with the notice and return requirements in the contract.”
The ACCC reported Jenny Craig co-operated during the investigation and took steps to rectify the conduct.