ACCC Fines SOS Alarm Maker $25K Over Dodgy Claims
The ACCC has hit mobile personal alarm seller Live Life Alarms with $25,200 in fines for alleged false or misleading claims on its website.
Flight Plan Digital Pty Ltd, trading as Live Life Alarms, sells personal SOS alarms used by seniors and people with disabilities to contact family, friends, or emergency services in a crisis.
The consumer watchdog slapped the company with two infringement notices over an alleged fake customer testimonial and misleading information on its “money-back guarantee”.
According to ACCC Commissioner Sarah Court, a testimonial published on Live Life’s website in January 2020 was in fact for a rival product.
“One of the ACCC’s infringement notices related to the publication of a fake testimonial on Live Life Alarms website. This alleged conduct was of particular concern to the ACCC as it may have influenced potentially vulnerable consumers to purchase a personal alarm from Live Life Alarms,” she said.
Additionally, the ACCC accused Live Life of making false or misleading representations about the “14-day money back guarantee” on its website, saying that instead of refunding the full cost of the item, the company would instead deduct $95 – almost one fifth of the purchase price of $497 – for costs including postage, packing, and credit card transaction fees.
“The penalties paid by Live Life Alarms should serve as a warning to businesses that it is unacceptable to mislead consumers about purported testimonials or reviews of their business, or to make false promises about money back guarantees,” said Court.
The company has since removed the testimonial from its website, and no longer deducts any fees from refunds.