Firm fined £2.6m for claiming clothes prevent Covid

An Australian activewear firm has been fined £2.6m (5m Australian dollars) for claiming its clothing "eliminated" and stopped the spread of Covid.

Lorna Jane said it accepted the court's ruling.

"A trusted supplier sold us a product that did not perform as promised," said Lorna Jane chief executive Bill Clarkson.

The legal action was brought by the Australian Competition & Consumer Commission (ACCC) after Lorna Jane began marketing the clothing last July during the Covid pandemic.

The court fined the company "for making false and misleading representations to consumers and engaging in conduct liable to mislead the public".

The company also admitted that its founder, Lorna Jane Clarkson, who is also its chief creative officer, authorised and approved the LJ Shield activewear promotional material and personally made some false statements in a press release and an Instagram video.

The judge said he had taken into account that "the conduct emanated from a high managerial level within the company" and "was directed by Ms Clarkson".

Lorna Jane, which has stores across Australia, New Zealand, the US and Singapore, has been ordered by the judge to publish corrective notices.

Last week, the company was also fined 40,000 Australian dollars by the Therapeutic Goods Administration drug regulator for "alleged unlawful advertising" in relation to Covid?

It said: "This kind of advertising could have detrimental consequences for the Australian community, creating a false sense of security and leading people to be less vigilant about hygiene and social distancing.".