Melbourne-based online retailer HSK United Pty Ltd has paid $79,200 in penalties after the Australian Competition and Consumer Commission (ACCC) issued four infringement notices over alleged breaches of the Australian Consumer Law.

The action relates to HSK’s operation of the Pain Free Aussies and Modern Aussies websites, where the regulator alleges consumers were misled by advertised discounts and statements about their refund rights.

The ACCC began investigating the business after receiving complaints from consumers and alleges both websites displayed products using strikethrough pricing that suggested items had been reduced from a higher price.

However, the regulator claims several products had not been sold at the higher advertised price since at least 1 January 2025, meaning shoppers may have been led to believe they were receiving genuine discounts when that was not the case.

“Online businesses, like bricks and mortar stores, must comply with the Australian Consumer Law and not mislead consumers,” ACCC Commissioner Luke Woodward said.

“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.

“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.”

The ACCC also raised concerns about the retailer’s returns policies, which stated that clearance products and items purchased using store credits were non-refundable.

According to the regulator, those statements did not accurately reflect consumer rights under the Australian Consumer Law. Consumers may still be entitled to a refund if a product is faulty, regardless of whether it was purchased on clearance or using store credit.

“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.

Following the ACCC’s investigation, HSK updated the returns policies on both websites and introduced changes to strengthen its internal compliance processes.

HSK United operates from Melbourne and owns Pain Free Aussies, which sells health and therapeutic products online, along with Modern Aussies, a retailer specialising in personal care and household products.

The ACCC noted that payment of an infringement notice is not an admission that a business has contravened the Australian Consumer Law. However, the regulator said it remains focused on ensuring online retailers provide accurate pricing information and clearly communicate consumers’ legal rights.