Mosaic Brands Limited, which counted among its stores Noni B, Rivers, Katies, Rockmans, has been ordered by the Federal Court to pay $25.05 million in ACCC penalties, specifically for accepting payment from consumers but failing to deliver items within a reasonable time frame.

The Federal Court found yesterday that Australian Consumer Law was breached over a six-month period, with Mosaic Brands wrongfully accepting payment from thousands of consumers. According to documents, the liquidated retailer failed to deliver 739,114 items within the delivery time specified on its websites across across its nine brands.

According to the ACCC, more than half of the items were shipped from Mosaic Brands warehouse 30 days or more after ordering, while around a third of the orders were sat in the warehouse for 40 days or more.

Mosaic Brands, which also owned Millers, Autograph, Beme, Crossroads, and W. Lane, had been a significant player in the Australian retail market before encountering financial difficulties leading to its liquidation.

The Federal Court's ruling comes as a significant development in the enforcement of consumer protection laws. The case against Mosaic Brands, it says, "underscores the importance of adhering to consumer law obligations, particularly in ensuring timely delivery of purchased goods."

"The penalties imposed on Mosaic Brands serve as a reminder of the potential consequences for companies that fail to meet their consumer law responsibilities," it added.