Latest news with #falseadvertising
Daily Mail
a day ago
- Business
- Daily Mail
Bombshell as Webjet is hit by a HUGE fine for misleading customers in landmark court ruling
Webjet has been ordered by the Federal Court to pay $9million in penalties for making false or misleading statements about the price of flights and booking confirmations. The case run by the ACCC, saw the online travel agency admit between 2018 and 2023 it made false or misleading statements when it advertised airfares that excluded compulsory fees. The statements were made on its website, and in promotional emails and social media posts. Webjet also admitted that between 2019 and 2024 it provided false or misleading booking confirmations to 118 consumers for flight bookings which had not actually been confirmed. Webjet later asked for additional payments, of up to $2,120 from consumers to complete the booking. Webjet has refunded these consumers. The ACCC started its investigation after a consumer complained about an airfare advertised as 'from $18', which cost almost three times that price after Webjet added its compulsory fees. 'We took this case because we considered that Webjet used misleading pricing by excluding or not adequately disclosing compulsory fees in its ads,' ACCC Chair Gina Cass-Gottlieb said. 'Seeking to lure in customers with prices that don't tell the whole story is a serious breach of the Australian Consumer Law.' The Webjet fees comprised the 'Webjet servicing fee' and 'booking price guarantee' fee which ranged from $34.90 to $54.90 per booking, depending on whether the flights were domestic, to New Zealand and the Pacific, or other international destinations. While Webjet's website, app and most emails contained information about the additional fees, some users had to scroll to the fine print near the bottom of the screen to see them. In its social media posts, Webjet didn't disclose the additional fees at all. 'Retailers must ensure their advertised prices are accurate. They should clearly disclose additional fees and charges,' Ms Cass-Gottlieb said. The Webjet fees represented 36 per cent of Webjet's total revenue in the period from 1 November 2018 to 13 November 2023. Webjet co-operated with the ACCC, admitted liability and agreed to make joint submissions to the Court about orders, including the penalty. The Court also made declarations and other orders proposed, including that Webjet review its compliance program and pay a contribution to the ACCC's costs.
The Independent
6 days ago
- Business
- The Independent
Poppi soda settles $9m lawsuit over ‘misleading' gut health benefits
Poppi, a soda company selling carbonated prebiotic drinks, will pay $8.9 million to settle a false advertising lawsuit, according to court documents. A class action lawsuit alleged that the company was incorrectly advertising that its drinks are "gut healthy," despite there being no science to back the claim. The settlement will benefit consumers who purchased any flavor or package size of the beverages between January 23, 2020, and July 18, 2025. No one's going to get rich claiming the settlement payouts unless they've been drinking a whole lot of Poppi. Those who can prove their purchase can receive up to $0.75 per single can, $3 per four-pack, $6 per eight-pack, and $9 per 12 or 15 pack. The exact payout may vary depending on the number of claims filed. Poppi hasn't admitted to any wrongdoing as part of the settlement. The company's gut health claims are rooted in the inclusion of a fiber called inulin in its drinks. Inulin can be found naturally in a number of fruits, vegetables, and plants. The inulin included in Poppi drinks is derived from agave. The fiber, which is classified as prebiotic, allegedly feeds and promotes good bacteria in the digestive system. Gut health has been an emerging health food trend for several years, as maintaining a healthy digestive system is thought to help lessen constipation, improve weight control, and balance blood sugar, according to NBC News. The lawsuit that Poppi settled claimed that the beverages did not include enough inulin to make a difference in drinkers' gut health. At the time the lawsuit was filed, Poppi issued a statement saying it stood by its product, calling the lawsuit "baseless." The settlement may prove frustrating for PepsiCo, the maker of Pepsi and other sodas, as it just acquired Poppi earlier this year in a $1.95 billion purchase. On Monday, Pepsi using the Pepsi name beginning this fall. Pepsi's drink only contains three grams of prebiotic fiber, which is just one gram more than Poppi's soda. It will also be sweetened by cane sugar rather than typical Pepsi sodas, which are sweetened with corn syrup. According to a 2023 study by the National Institute of Health, the "daily effective intake" of inulin is five grams, and the maximum daily intake is between 15 and 20 grams.
Yahoo
22-07-2025
- Automotive
- Yahoo
Tesla faces temporary sales suspension in California
Tesla faces temporary sales suspension in California originally appeared on Autoblog. DMV Takes Aim At Tesla's Autopilot Ads Tesla has long called its most sophisticated driver-assist features "Autopilot" and "Full Self-Driving," which is inaccurate as neither system allows for autonomous driving. Now the automaker might finally face serious consequences for this practice. First reported by Electrek, Tesla could temporarily lose its license sell cars in California amid a lawsuit brought by the state's DMV, which alleges that the automaker is misrepresenting the capability of its driver aids, constituting false advertising. The DMV is looking to suspend Tesla's ability to sell cars in California for 30 days. That would be a major blow to the automaker. Tesla Accused Of Exaggerating Tech's Capabilities According to Electrek, the California DMV has been investigating Tesla for misleading customers about the capabilities of its driver-assist tech since 2021. The agency is reportedly concerned not only about the names of the features, but about statements by the automaker, such as one claiming that such tech "is designed to be able to conduct shot and long-distance trips with no action required by the person in the driver's seat." The California DMV also flagged a public statement from Tesla in which the automaker claims that "all you need to do is get in and tell your car where to go." In response, Tesla has reportedly argued that in-car warnings for drivers to stay attentive at all times are sufficient to prevent customers from misconstruing the capabilities of its driver-assist systems. That doesn't seem to have been a convincing argument as, during a five-day court hearing on the matter, the California DMV said that it is seeking a suspension of Tesla's manufacturer and dealer license "for not less than 30 days," as well as financial restitution, with an amount to be determined at a future hearing. More Trouble For Tesla This isn't the first time Tesla has faced scrutiny from government agencies over the way it's portrayed its driver-assist tech to customers. In 2021, Jennifer Homendy, chairwoman of the National Transportation Safety Board (NTSB), called Tesla's Full Self-Driving nomenclature "misleading and irresponsible." The federal government has also investigated Tesla driver aids multiple times in recent years, including one earlier this year of the "Smart Summon" remote parking feature involving 2.6 million vehicles. But where previous investigations have usually resulted in recalls or orders to address potential safety faults, this lawsuit could impact Tesla's already-declining sales. California is not only the biggest market for EVs in the United States, but the biggest market for new cars overall. Even a short suspension of sales is not what the automaker needs. Tesla saw a big year-over-year sales drop in the second quarter, just as top sales executives left the company. Meanwhile, its new head of sales is a former IT executive with no sales experience. And the federal government's suspension of emissions penalties means Tesla could lose business from the sale of compliance credits—a revenue stream that's often been more important to the company's bottom line than car sales. Tesla faces temporary sales suspension in California first appeared on Autoblog on Jul 21, 2025 This story was originally reported by Autoblog on Jul 21, 2025, where it first appeared.
Daily Mail
22-07-2025
- Automotive
- Daily Mail
Newsom seeks to halt Tesla operations, targeting Elon Musk
California authorities are locked in a legal battle with Elon Musk's Tesla in an effort to suspend the electric car company's operations in the state. Governor Gavin Newsom has been a vocal critic of Tesla's market dominance and clashed with the world's richest man intensely after he endorsed President Donald Trump in the 2024 race. Now, officials at the Department of Motor Vehicles have alleged in court Tesla deceived consumers with its autopilot and self driving features. Lawyers representing the DMV maintain Tesla engaged in false advertising when it promoted 'autopilot', 'self driving capability' and a system 'able to conduct short and long-distance trips with no action required by the person in the driver's seat.' The suit was first filed in July 2022 and amended in November 2023. The state is seeking to have Tesla's licenses to manufacture and sell cars suspended in California for at least 30 days. Lawyers would also like Tesla to pay an as-yet-undetermined sum as restitution. 'These labels and descriptions represent specifically that respondent (Tesla)'s vehicles will operate as autonomous vehicles, which they could not and cannot do,' Attorney General Rob Bonta wrote in a July 17 brief. Deputy Attorney General Christopher Beatty, who represented the state's DMV in court, said it would be 'a straightforward case.' He argued that Tesla had for years advertised high-tech features which falsely suggested the cars could drive and park themselves. But attorneys for Tesla insisted the company 'has always made clear' that the cars are not fully autonomous and required 'active driver supervision.' Tesla has said Autopilot lets vehicles steer, accelerate and brake in their lanes, and Full Self-Driving lets vehicles obey traffic signals and change lanes. But it has admitted that neither excuses drivers from paying attention to the road, and the technologies 'do not make the vehicle autonomous.' DMV investigations Commander Melanie Rosario provided testimony during the first day of proceedings, arguing: 'Autopilot to me means (the car) can drive itself or do things on its own.' But she said she had noticed contradictory statements from Tesla, touting self driving capabilities while simultaneously instructing drivers to keep their hands on or near the steering wheel. David Marcus, representing Tesla, told the court the complaint is the DMV's latest attempt to block a company 'on the verge of fulfilling the dream' of getting autonomous vehicles on the mass market for public consumption. 'Let me say this very clearly, Tesla has never misled consumers. Never,' Marcus said. Musk and Newsom have clashed over state policies for years, including Newsom's decision to shut Tesla's Fremont factory during the pandemic and California's approval of a bill on transgender kids. In 2021, Tesla moved its headquarters from California to Texas, and by late 2024, SpaceX and X had followed suit. At the height of Musk and President Trump's bromance, Newsom vowed to introduce a state tax rebate on purchasing electric cars if the Trump administration eliminates the federal tax cut - excluding Musk's Tesla from a piece of the pie. The new rebates could exclude Tesla and other automakers with a large market share in an effort to promote more competition, the governor's office said. But that is subject to negotiation with the state Legislature. Tesla holds 55 percent of California's EV market share, down from 64 percent a year ago. Hyundai and BMW are the next two biggest EV sellers in the state, at just 6.4 percent and 5.5 percent, respectively. Musk, whose company is the only one that actually manufactures EVs in the Golden State, clearly felt singled out and slammed Newsom's proposal at the time. 'Even though Tesla is the only company who manufactures their EVs in California! This is insane,' he wrote on X. Newsom earlier this year told Musk's nemesis Steve Bannon that California 'created' the billionaire through generous EV mandates. Bannon said 'you know him. You guys created him', prompting Newsom to agree, adding: 'In many respects, California did. Our regulatory process and our subsidies to create this market.' That wasn't the first time Newsom had taken credit for Musk's success. 'It's one of the reasons guys like Elon Musk and others have become so successful,' Newsom said in October. 'It's because we've set price signals, we've created markets, we've created opportunities for investments. We're the number one manufacturer for a reason. We continue to be the envy of the world.' Tesla in July launched a small group of self-driving taxis in Texas after a several delays, with Musk celebrating the 'robotaxi launch' and social-media influencers posting videos of their first rides. The event marked the first time Tesla cars without human drivers have carried paying riders, a business that Musk sees as crucial to the electric car maker's financial future. He called the moment the 'culmination of a decade of hard work' in a post on his social-media platform X and noted that 'the AI chip and software teams were built from scratch within Tesla.'
Yahoo
22-07-2025
- Automotive
- Yahoo
Tesla faces temporary sales suspension in California
Tesla faces temporary sales suspension in California originally appeared on Autoblog. DMV Takes Aim At Tesla's Autopilot Ads Tesla has long called its most sophisticated driver-assist features "Autopilot" and "Full Self-Driving," which is inaccurate as neither system allows for autonomous driving. Now the automaker might finally face serious consequences for this practice. First reported by Electrek, Tesla could temporarily lose its license sell cars in California amid a lawsuit brought by the state's DMV, which alleges that the automaker is misrepresenting the capability of its driver aids, constituting false advertising. The DMV is looking to suspend Tesla's ability to sell cars in California for 30 days. That would be a major blow to the automaker. Tesla Accused Of Exaggerating Tech's Capabilities According to Electrek, the California DMV has been investigating Tesla for misleading customers about the capabilities of its driver-assist tech since 2021. The agency is reportedly concerned not only about the names of the features, but about statements by the automaker, such as one claiming that such tech "is designed to be able to conduct shot and long-distance trips with no action required by the person in the driver's seat." The California DMV also flagged a public statement from Tesla in which the automaker claims that "all you need to do is get in and tell your car where to go." In response, Tesla has reportedly argued that in-car warnings for drivers to stay attentive at all times are sufficient to prevent customers from misconstruing the capabilities of its driver-assist systems. That doesn't seem to have been a convincing argument as, during a five-day court hearing on the matter, the California DMV said that it is seeking a suspension of Tesla's manufacturer and dealer license "for not less than 30 days," as well as financial restitution, with an amount to be determined at a future hearing. More Trouble For Tesla This isn't the first time Tesla has faced scrutiny from government agencies over the way it's portrayed its driver-assist tech to customers. In 2021, Jennifer Homendy, chairwoman of the National Transportation Safety Board (NTSB), called Tesla's Full Self-Driving nomenclature "misleading and irresponsible." The federal government has also investigated Tesla driver aids multiple times in recent years, including one earlier this year of the "Smart Summon" remote parking feature involving 2.6 million vehicles. But where previous investigations have usually resulted in recalls or orders to address potential safety faults, this lawsuit could impact Tesla's already-declining sales. California is not only the biggest market for EVs in the United States, but the biggest market for new cars overall. Even a short suspension of sales is not what the automaker needs. Tesla saw a big year-over-year sales drop in the second quarter, just as top sales executives left the company. Meanwhile, its new head of sales is a former IT executive with no sales experience. And the federal government's suspension of emissions penalties means Tesla could lose business from the sale of compliance credits—a revenue stream that's often been more important to the company's bottom line than car sales. Tesla faces temporary sales suspension in California first appeared on Autoblog on Jul 21, 2025 This story was originally reported by Autoblog on Jul 21, 2025, where it first appeared.
