German bedroom furniture supplier Emma Sleep has admitted to making false or misleading representations regarding the sale prices of its mattresses, bed frames, pillows, and accessories following an investigation undertaken by consumer watchdog the ACCC.

Proceedings in the Federal Court today found that the company's subsidiary Bettzeit Southeast Asia engaged in the same conduct. Emma Sleep admitted it advertised 74 products online with misleading pricing information between 15 June 2020 and 27 March 2023.

Of these 74 products, 58 had not been previously sold at the strikethrough price or at a price equivalent to the price without the claimed discount. The remaining 16 products had almost never been sold at the strikethrough price or at a price equivalent to the price without the claimed discount. Emma Sleep also admitted to misleading representations that products would only be available at sale prices for a limited time, which was not true.

Sales campaigns employed countdown timers to create a false sense of urgency, suggesting that discounts would end when the timer reached zero. However, the timers either reset or the discounts continued. "Sales and claimed savings can be enticing to consumers so it is important these claims are accurate," said ACCC Deputy Chair Catriona Lowe.

The Australian Competition and Consumer Commission (ACCC) took action against Emma Sleep Pty Ltd's German parent company, Emma Sleep GmbH, but the Court dismissed allegations against the parent company. The ACCC is seeking declarations, penalties, injunctions, and other orders, with the Court to determine penalties at a later date.

Bettzeit Southeast Asia Inc is a subsidiary of Emma Sleep GmbH operating in the Philippines, while Emma Sleep Pty Ltd is a subsidiary operating in Australia since 2020. Emma Sleep advertises through various channels including its website, social media, TV, radio, print media, email, SMS, and third-party retailer websites.

"Sales campaigns on the Emma Sleep website and other platforms indicated that discounts would only be available for limited periods of time through the use of countdown timers. The timers created a false sense of urgency by suggesting the sale price would no longer be available after the timer reached zero. In fact, after reaching zero the countdown timers reset, or the products continued to be advertised for sale at the same or similar discount," said Lowe.

The ACCC will continue to scrutinise promotional conduct by retailers, with a focus on misleading pricing practices as a priority for 2025-26. "These type of false advertising practices not only mislead customers but also mean companies get an unfair advantage over other suppliers," Lowe said.