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Introduction
Mosaic Brands, the now-liquidated owner of some of Australia’s most recognisable clothing labels, has been fined $25.05 million by the Federal Court for breaching multiple consumer protection laws. The penalty marks another chapter in the collapse of the retail giant, which once operated 800 stores and served millions of online customers.
Details of the Breaches
The court found Mosaic Brands’ nine labels—including Noni B, Rivers, Katies, Rockmans, Millers, Autograph, Beme, Crossroads, and W Lane—had:
- Failed to deliver 739,114 items to customers on time, or within a reasonable period.
- Failed to deliver more than 4,300 items at all.
- Misled customers with restrictive refund policies, limiting faulty item returns to within six months.
The breaches occurred across a six-month delivery period and a 13-month period for the returns policy.
Court Findings
The Australian Competition and Consumer Commission (ACCC) argued Mosaic Brands engaged in misleading and deceptive conduct and “wrongfully accepted payment” from customers.
ACCC Deputy Chair Catriona Lowe said:
“Our investigation revealed that more than half the items in question were dispatched 30 or more days after the order date, and about one-third 40 or more days later. In one case, a consumer never received their order and had to wait six months for a refund.”
The Federal Court determined the delays and refund limitations were unlawful, finding that under consumer law, refunds for faulty goods apply for a “reasonable time,” not an arbitrary six-month cap.
Financial Penalty
Mosaic Brands was fined $25.05 million. The case adds to previous enforcement action:
- In May 2021 and September 2022, Mosaic was hit with $896,000 in infringement notices for misrepresentations about faulty item refunds.
- The retailer ultimately entered voluntary administration in October 2024 and complete liquidation in July 2025.
Company Background
At its peak, Mosaic Brands operated 800 stores across Australia and boasted a customer base of 7.8 million online shoppers. Its portfolio was widely recognised across suburban and regional shopping centres, targeting women’s fashion through multiple budget brands.
Conclusion
The $25 million fine underscores the ongoing risks for consumers dealing with large retail operators and the importance of robust consumer protections. For Mosaic Brands, the penalty is largely symbolic given its liquidation, but for regulators, the case stands as a warning to other businesses that systemic delivery failures and misleading refund policies will be met with heavy sanctions.