The Federal Court has ordered Bloomex Australia to pay a $1 million penalty for multiple breaches of the Australian Consumer Law.

The online florist and gift retailer admitted to publishing misleading star ratings for its products and advertising products at a discount when they had not generally sold products at the 'strikethrough price'. The company also admitted to adding surcharges that were inadequately disclosed.

"Bloomex misled consumers about the quality and price of its products for a long time, and this penalty is an indication of how seriously the court views this conduct," said ACCC Commissioner Liza Carver.

Bloomex's star ratings remained static since January 2015, and included customer reviews for products prepared and delivered outside Australia, as well as ratings from people who may not have been Bloomex customers. "Misleading online reviews and star ratings are an issue of significant concern to us because they can influence consumers into purchasing from a business, when they would not otherwise have done so," Carver said.

Between February 2019 and November 2022, Bloomex published 'strikethrough' prices, 'half price' or '50% off' discount statements in relation to its products on its website, even though it had not generally sold the products at the higher prices displayed. "The star ratings displayed by Bloomex were misleading about the extent to which other consumers were satisfied with Bloomex's products and may have led to false assumptions about whether those products were suitable for them," Carver said.

Furthermore, between August 2022 and March 2023, Bloomex admitted that it had failed to adequately disclose that it was imposing a surcharge ranging from $1.95 to $4.95 on orders made via its website. "Businesses must be upfront, and clearly disclose to consumers the total price for their products, including what types of fees will apply. They must not display prices that are incorrect or likely to create a false impression," Carver said.

The Court also imposed injunctions and ordered Bloomex to establish a compliance program and pay the ACCC's costs.