A major bed and chair supplier has refunded customers after it admitted it likely breached Australian Consumer Law.

Furniture supplier Revitalife has refunded more than $55,000 and provided a court-enforceable undertaking to the ACCC over questionable sales practices it engaged in.

Allegations have surrounded Clews Holdings Pty Ltd, trading as Revitalife, for years over its sales tactics and the health claims it made to vulnerable elderly people.

The ACCC said that from at least July 2019 until January 2022 Revitalife made unsolicited calls to consumers offering to conduct a “sleep assessment” survey and arrange a home visit.

Revitalife then visited the predominantly elderly consumers at home and tried to sell them therapeutic adjustable beds and recliner lift chairs.

Revitalife has since conceded it likely breached Australian Consumer Law by failing to clearly disclose the true purpose of the unsolicited visit.

It also did not tell consumers it was obliged to leave the premises immediately if asked to do so.

Revitalife acknowledged that from at least July 1, 2019 to June 30, 2021 it failed to adequately disclose to some consumers that the true purpose of its in-home visit was to sell Revitalife products.

From at least 2017 until March 2021, it represented to some consumers that product recommendations were based on the results of the Health Assessment completed by the consumer when in fact this was not always the case.

“Consumer protections regarding unsolicited sales practices are very important, particularly for consumers experiencing vulnerability, and we believe Revitalife did not consistently adhere to these protections from at least 2017 to March 2021,” ACCC deputy chair Delia Rickard said.

“Businesses who use unsolicited sales practices must ensure they are providing consumers with accurate information.”

The ACCC was also concerned Revitalife made false or misleading representations to consumers about their consumer guarantee rights and their rights to a refund after terminating an unsolicited consumer agreement within the cooling-off period.

Revitalife has since identified consumers who may not have received their correct refunds and paid a total of $57,646 in refunds to 49 customers.

Over the years frustrated consumers have documented their negative experiences with Revitalife on a community board run by consumer advocacy group Choice.

One commenter said their elderly parents bought an $8000 bed after being visited by a Revitalife representative at their home.

“My elderly parents in Victoria were led to believe that they were completing a phone survey from a government pension agency. A few days later they were visited by a rep from Revitalife who sold them a bed for close to $8000,” one said.

“Luckily my sister was able to stop the sale. I really feel for vulnerable elderly people who fall prey to these scammers.”

Another person’s elderly parent was also sold an $8000 bed.

“They took advantage of my elderly father and sold him an $8000 bed. Then even though they had a cooling off period, they made it very difficult for us to cancel the order,” they said.

“I made a cold call pretending to be a new customer and over the course of the conversation managed to negotiate the same mattress my father had bought for $3000.”

One user also received a call from Revitalife following a survey they completed.

The woman on the phone said she was from a company called “Health and Wellbeing” and they could advise the commenter of all the health services available in their area.

“The representative came and wrote down all our medical conditions and their consequences. After an hour and a bit, he brought out brochures for a tilting bed at $7500 each,” they said.

“No mention of community or heath and wellbeing services in our area. We were promised support for our health needs and were only a captive audience to sell us two expensive beds.”

Choice wrote to the ACCC in 2020 asking for an investigation into the company’s marketing practices, medical claims and contractual clauses in the documents provided to customers.

“We were appalled by the way that Revitalife was using a purported ‘health survey’ to get into people’s homes and then subject them to pushy sales tactics. We also raised concerns with contracts that misled people about their rights,” Director of Campaigns Jessica Kirby said.

“We congratulate the ACCC for achieving this outcome, which will ensure that people who were ripped off receive refunds and future consumers are better protected.”

Revitalife apologised to any customers impacted by their conduct over the years.

“Over the past several years, our conduct has not aligned with the central tenet of our business – to deliver the best possible experience for all our customers,” a statement from the management team at Revitalife said.

“Under our Revitalife brand, some customers were misinformed about their right to full or partial product refunds. Certain sales efforts were also non-compliant with regulations by not clearly identifying the purpose of those efforts to potential customers.

“For that, we extend our profound apologies to those affected. Compliance is a critical part of every business, large and small, and our oversights should never have compromised our search for better sleep.”

Going forward, Revitalife will update its complaints handling system, and establish and maintain a consumer law compliance program.

The company also ceased conducting in-home sales, amended its policies and practices and removed terms from its sales agreements which were considered unfair contract terms by the ACCC.

It will also work closely with the ACCC to institute any additional recommendations.

“We can’t undo the past, but by investing sufficiently in ongoing compliance, we can make sure it’s never repeated,” the management team said.

Revitalife ceased conducting in-home sales in January of this year.

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