The Federal Court has ordered former fashion retailer Mosaic Brands Limited to pay $25.05 million in penalties after finding the company breached the Australian Consumer Law by accepting payment for goods it failed to deliver within a reasonable time.
Mosaic Brands, which is now in liquidation, owned well‑known labels including Noni B, Rivers, Katies, Rockmans, Millers, Autograph, Beme, Crossroads and W. Lane. The Court found that over a six‑month period the group failed to deliver 739,114 items within the delivery times specified on its websites, or within a reasonable time; 4,213 of those items were not delivered at all.
In doing so, the company was found to have wrongfully accepted payment from consumers and engaged in misleading or deceptive conduct. The Court also concluded Mosaic did not have reasonable grounds for its online delivery time representations because of deficient and defective warehousing and logistics systems and operations.
“Delivery times matter and it is unacceptable to mislead consumers about this aspect of a sale. A large number of Australians – and close to a quarter of online goods ordered from the Mosaic Group were affected by it,” ACCC Deputy Chair Catriona Lowe said.
“Our investigation revealed that more than half of the items in question were dispatched from Mosaic Brands’ warehouses 30 or more days after the order date, and about one‑third were dispatched 40 or more days after the order date.”
“One person who reported to us experienced the dual disappointment of never receiving the goods they’d paid for and then having to wait six months for a refund,” Ms Lowe said.
The Court also found Mosaic breached the law when, between 2021 and 2022, it stated on eight brand websites that consumers were only eligible for a refund for a faulty item if they sought it within six months of purchase. Under the Australian consumer Law, there is no set time limit for refunds for faulty goods; entitlement depends on what is reasonable in the circumstances.
“All online retailers should be aware that excessive delivery delays after accepting payment can lead to penalties of this magnitude,” Ms Lowe said.
The ACCC commenced proceedings in the Federal Court in March 2024; the Court made orders on 28 August 2025, with reasons to follow. Mosaic entered voluntary administration in October 2024 and moved into liquidation in July 2025. The Court granted the ACCC leave to continue proceedings and, since January 2025, the matter has been undefended.
At its peak, Mosaic was a publicly listed company with about 7.8 million online members and roughly 800 stores nationally. The group has previously paid $896,400 in penalties for separate breaches and gave a court‑enforceable undertaking in May 2021 relating to misrepresentations on its websites, including about refunds for faulty goods.
The ACCC has flagged consumer issues in domestic supply chains — such as misrepresentations of delivery timeframes and non‑delivery — as an enforcement priority for 2023–24.
