The Federal Court has ordered Emma Sleep Pty Ltd and Emma Sleep Southeast Asia Inc to pay a total of $15 million in penalties for making false or misleading representations about the sale price of mattresses, bed frames, pillows, and accessories.
Emma Sleep Pty Ltd admitted in June 2025 that it made false or misleading representations by advertising all 74 of its products online showing a purchase price alongside a higher price with a ‘strikethrough’, and displaying a percentage discount (such as ‘50% OFF’) or indicating the sale price would represent a certain saving to the consumer (such as ‘Save as much as $3,531’).
In fact, of the 74 products, 58 products had not previously been for sale at the strikethrough price or without the discount or savings. The remaining 16 products had almost never been for sale at the strikethrough price or without the discount or savings.
Emma Sleep Pty Ltd also admitted that it had made misleading representations that the discount prices were available for a limited time, by using a countdown timer that would reset during a sale campaign, and using phrases such as “Ending Soon” when the products continued to be advertised at the same or similar discount.
The Court found that the conduct arose out of a deliberate marketing strategy and that senior management turned a blind eye to whether it contravened the Australian Consumer Law. The conduct was not inadvertent or caused by a system error.
“When marketing their products companies and their executives must ensure they do so honestly, responsibly and in compliance with the law,” ACCC Commissioner Luke Woodward said.
This conduct occurred between 15 June 2020 and 27 March 2023. The Federal Court also found that Emma Sleep Southeast Asia Inc engaged in the same conduct.
“The Emma Sleep companies breached the Australian Consumer Law by making false or misleading representations which gave consumers the impression they were getting a bargain,” ACCC Commissioner Luke Woodward said.
“The ACCC was concerned that Emma Sleep’s conduct created a false sense of urgency about the offer by using a countdown timer that reset itself, and by making false claims suggesting to consumers that the sale was ending soon, which to may have pressured them into making a rushed purchase decision.”
The Court ordered Emma Sleep Pty Ltd to pay a penalty of $7.5 million, and Emma Sleep Southeast Asia Inc to pay $7.5 million.
The Emma Sleep website was visited more than 4.9 million times in the relevant period, and Emma Sleep’s social media posts had more than 10 million views. Emma Sleep also sent emails to more than 4 million consumers and SMS messages to nearly half a million individuals containing the misleading sales representations.
Nearly every sale made by Emma Sleep during the relevant time was advertised with a savings representation, leading to over $134 million in revenue, and involving over 243,000 individual products sold.
The Court also ordered that Emma Sleep publish corrective notices and implement a compliance program.
In the UK, the Competition and Markets Authority (CMA) previously announced a trial date in relation to the investigation on Emma Sleep over concerns of its online sales practices. The trial will be heard in the High Court commencing on 3 June 2026, with a time estimate of three days. (See related).
