The Australian Consumer Law Reform Commission has fined Garners Sports Group $1,918,000 over the use of “pats” and “sports” trademarks in its business, which included the sale and marketing of a sports shoe, a helmet, a hat, and a helmet visor.
The consumer protection agency found that Garners failed to use the mark “patties” or “sports shoes” properly and also failed to disclose that the brand was not a sporting goods brand.
“Garners failed in its duties to act in a reasonable and responsible manner,” the ACCC said in a statement.
“This involved not using the marks ‘pattys’ or ‘sports shoes’ in its marketing and not disclosing that the trademark was not used in its own marketing.”
In its conduct, Garners breached the advertising code by failing to disclose the fact that the mark was not authorised under Australian law.
“The ACCC also said that the company failed to inform consumers that the product did not contain the “p” mark.”
When the trademark is registered under Australian or international law, Garnists must be treated with the utmost care and respect and must comply with any applicable advertising regulations, including the Australian Consumer Laws,” the watchdog said.”
The company failed in these duties by failing not to disclose this fact when consumers purchased the products.
“The company has been ordered to pay the commission a penalty of $1 million and pay a $150,000 penalty surcharge.
The ACCCs decision was announced after the ACC launched a formal investigation into the use and marketing practices of Garners, which had been licensed in September.
The Australian Consumer Council said the decision “shocked” consumers.”
We know from other cases that there are plenty of examples of big corporations who don’t even know what their advertising laws are, or don’t care,” ACCC chairwoman Sarah Richardson said.
Garnes Sports Group was the first company to be fined under the ACC’s anti-fraud rules, which were introduced to combat consumer fraud.
It is also one of the largest retailers in the country.