$3.5m fine for false donations

EYEWEAR retailer Oscar Wylee has been ordered to pay $3.5m over false claims about glasses donated to the poor.

The company had promised to donate a pair of glasses to disadvantaged people in Australia and overseas for every pair sold as part of its “buy a pair, give a pair” campaign.

Despite selling 328,010 pairs of glasses between 2014 and 2018, just 3181 were donated – and they did not have lenses.

The Federal Court found Oscar Wylee guilty of misleading conduct and making false or misleading claims about its charitable donations.

Australian Competition and Consumer Commission deputy chairwoman Delia Rickard said the business used charitable giving as a marketing tool to elevate its brand image, unfairly differentiating itself from competitors.

“Oscar Wylee deprived disadvantaged people in need of the benefits it promised in its advertising,” she said.

“Oscar Wylee promoted its charitable activities as a core reason why consumers should buy Oscar Wylee glasses, but its claims were false and were made in circumstances where consumers could not easily verify these claims for themselves.”

The company also made false statements about its charitable giving to Rose Charities, which provides sustainable eye care programs in Cambodia.

Federal judge Anna Katzmann said Oscar Wylee betrayed its promise to customers and was seeking to profit on their goodwill and social conscious.

The company admitted liability and made joint submissions with the ACCC to Federal Court.