The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against Emma Sleep and two of its subsidiaries, Bettzeit Southeast Asia and Emma Sleep Pty Ltd.

The ACCC alleges that the companies have made false and misleading representations in their product advertising, creating an artificial sense of urgency around their discounted pricing.

Emma Sleep, a bedroom furniture supplier incorporated in Germany, has been operating since 2013 and has expanded its reach to over 30 countries. Its Australian subsidiary, Emma Sleep, launched operations in Australia in 2020.

Bettzeit Southeast Asia is incorporated in the Philippines. The companies advertise their products through various channels, including their website, social media platforms, a comparison website, TV, radio, print media, email, SMS, and third-party retailer websites such as Woolworths Marketplace and Bunnings Marketplace.

The ACCC's allegations focus on the period between 15 June 2020 and 27 March 2023, during which Emma Sleep is said to have advertised its products online, displaying a previous, higher price with a 'strikethrough', indicating a percentage discount, or suggesting a certain saving to the consumer.

The ACCC also alleges Emma Sleep misled consumers by suggesting its advertised prices were part of a limited sales campaign, using tactics such as countdown timers on its website or stating that the campaign was ending soon.

"We allege Emma Sleep enticed consumers to buy its products by misleading them about the discount or savings they would get, and by creating an artificial sense of urgency about the availability of its discounted pricing," ACCC Deputy Chair Catriona Lowe said. "Consumers may have been deprived of genuine and informed choice, and Emma Sleep may have unfairly gained a competitive advantage over other suppliers.

"Misleading consumers by indicating a price is a limited time offer, or suggesting they are getting a discount, or saving money, when this is not the case is unlawful. It is designed to get consumers to make a purchase based on false information."

The ACCC is seeking declarations, injunctions, penalties, consumer redress, costs and other orders against Emma Sleep and its subsidiaries.