Sleep brand and mattress manufacturer Emma Sleep has published a court-ordered corrective notice on its Facebook page, admitting it misled Australian consumers with false discount claims. The move follows a $15 million Federal Court penalty imposed in April 2025 over deceptive pricing practices.
Court Finds Deliberate Misconduct
The Federal Court ruled that Emma Sleep made false or misleading representations about discounts and savings on mattresses, bed frames, pillows, and accessories. The company advertised products with higher “strikethrough” prices alongside percentage discounts, even though many of those products were never or almost never sold at the higher prices.
The court also found that Emma Sleep used countdown timers and “Ending Soon” messages that reset or continued despite the same discounts remaining available. The conduct was deemed deliberate, with senior management turning a blind eye to compliance with Australian Consumer Law. Emma Sleep Pty Ltd and Emma Sleep Southeast Asia Inc were each ordered to pay $7.5 million.
Company Admits Misleading Practices
In June 2025, Emma Sleep Pty Ltd admitted that all 74 products advertised on its Australian website featured misleading pricing representations. Of those, 58 had never been sold at the higher “strikethrough” price, while the remaining 16 had almost never been offered at that price.
“When marketing their products, companies and their executives must ensure they do so honestly, responsibly and in compliance with the law,” said ACCC Commissioner Luke Woodward. “The Emma Sleep companies breached the Australian Consumer Law by making false or misleading representations which gave consumers the impression they were getting a bargain.”
Widespread Impact on Consumers
The ACCC noted that Emma Sleep’s website received more than 4.9 million visits during the relevant period, while its social media posts attracted over 10 million views. The company also emailed more than four million consumers and sent SMS messages to almost 500,000 people containing the misleading sales representations.
Nearly every sale made by Emma Sleep during the period featured a savings representation, generating more than $134 million in revenue across more than 243,000 products sold. The ACCC expressed concern that the company’s conduct created a false sense of urgency, pressuring consumers into rushed purchase decisions.
Background on Emma Sleep
Founded in Germany in 2013, Emma Sleep operates in more than 30 countries and sells mattresses, bed frames, and sleep accessories directly to Australian consumers. The corrective notice published on Facebook is part of the court-ordered remedy to inform consumers of the misleading conduct.
