Large florist operators passing off as local businesses or charging a premium for locally-grown flowers that are in fact imported will be investigated by the competition watchdog ahead of the lucrative Valentine’s Day buying spree.
The Australian Competition and Consumer Commission (ACCC) will investigate reports that some suppliers claiming to have a local presence were operating remote distribution centres or outsourcing to local businesses for a commission.
Some florist operators are being investigated by the ACCC.Credit:Lauren Sams
Florists claiming that their imported flowers are locally grown and charging a premium for them will also be investigated, the watchdog said.
“Consumers are often willing to pay premium prices at local florists in the hope they will get fresh flowers, a direct point of contact and reliable delivery,” said ACCC deputy chair Delia Rickard.
“When national order gatherers use suburb-specific information in their online digital marketing, it may mislead a consumer into thinking they are dealing with a small local business,” she said.
The warning comes a few days ahead of Valentine’s Day, which will see the industry earn about $36 million in one day, equal to three months’ trade.
For a customer, purchasing through an ‘order gatherer’ – a large florist network charging a local business commission to fulfil the order – may mean less value for money and be difficult to determine where the flowers are grown.
Florists, growers and order gatherers will have to substantiate any claims made about where their business is based or where their flowers are sourced, Ms Rickard said. “Any business unable to do so may be in breach of the Australian Consumer Law.”
Flower Industry Australia chief executive Anna Jabour said the problem of order gatherers posing as locals was “rampant”. “Florists have been calling out for an investigation to happen for years,” she told the Sydney Morning Herald and The Age.
