The Australian Competition and Consumer Commission (ACCC) has commenced a Federal Court case against Kimberley-Clark and Pental Ltd
(ASX:PTL) over allegedly false and misleading representations that they made, in breach of the Australian Consumer Law.
According to the ACCC, Kimberley-Clark claimed that its Kleenex Cottonelle Flushable Cleansing Cloths were “completely flushable”, “able to be flushed in the toilet”, and can “break down in [a] sewerage system".
In regards to Pental, the ACCC alleges that the company made representations on its packaging and promotional materials that its ‘White King Bathroom Wipes’ are flushable and that they disintegrate like toilet paper.
Consumer group, Choice, found that toilet paper dissolves within a matter of minutes, but these wipes held together for 21 hours - contrary to the claims on their packaging.
Kimberley-Clark has issued a statement, defending the “flushability” of its Cleaning Cloths. As for Pental, it issued a response stating it undertook a review of its Bathroom Wipes, and removed the claims that they “disintegrate like toilet paper” well before the ACCC began its investigation.
Pental posted a net profit of $5.6 million at 26 June 2016.
