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Friday 23rd July 2021
Statement regarding ACCC v Lorna Jane Pty Ltd and Lorna Jane Clarkson
Lorna Jane Pty Ltd accepts the Federal Court’s ruling and acknowledges that some representations made to customers in the marketing of the LJ Shield product were misleading. This was never our intention, and we apologise wholeheartedly to our customers.
The company is pleased the ACCC acknowledged to the Court that it was not alleging either the company or any of its directors or employees knew that the representations were false or misleading.
The company is also pleased all allegations made against Lorna Jane Clarkson, as an individual, have been dismissed.
CEO of Lorna Jane Pty Ltd Bill Clarkson said the company had been let down by a trusted supplier.
“A trusted supplier sold us a product that did not perform as promised. They led us to believe the technology behind LJ Shield was being sold elsewhere in Australia, the USA, China, and Taiwan and that it was both anti-bacterial and anti-viral.”
“We believed we were passing on a benefit to our customers at no extra cost to them. We did not increase the retail price of the product.” Mr Clarkson said.
Throughout this process the company has fully cooperated with the ACCC and will comply with its obligations under the court orders.
As soon as the matter came to light in July 2020, the company reacted quickly and removed all marketing material and initiated an immediate review of its processes.
“In the last 12 months we have reviewed the fundamentals of the production and marketing areas of our business, created new management roles in both teams and have now introduced an improved product testing regime so this cannot happen again.” Mr Clarkson said.
The product testing regime involves improved supplier testing and independent certification before purchase or use by Lorna Jane Pty Ltd.
The company will also do in-house product testing so it can be assured all products meet the quality standards its customers rightfully expect.
“This matter has changed the way we are doing things in our business. We are putting in place the processes and governance measures a business our size needs. We are committed to continue to provide great products for our customers.
Chief Creative Officer Lorna Jane Clarkson said she cares deeply about her customers and is saddened by what has happened.
“I sincerely apologise to our customers. The company was let down by its supplier and I feel that I was let down personally by people I trusted. I have spent 35 years building a business that supports and empowers women — I would never intentionally put that at risk. I am committed to being better and doing better for all the women who love and support our brand.” Ms Clarkson said.