Ikea's "leather" couches, Kleenex's "flushable" wet wipes and NAB's "low" rate credit cards have each snagged a Shonky Award for delivering the opposite of what was sold to consumers.
At its annual awards ceremony, consumer advocacy group Choice bestowed its name and shame gongs on what it rated the eight dodgiest products and companies in 2015, including Coca-Cola and Arnott's.
"From payday lenders that prey on the vulnerable to laundry products that just don't work, it is clear business still needs to sharpen up its act," said Alan Kirkland, chief executive of Choice.
It criticised electronics giant Samsung for its ineffective recall of washing machines with a fault that has sparked house fires. There are 58,000 machines yet to be fixed, replaced or refunded across the country.
Coca-Cola was blasted for funnelling money to the front group Global Energy Balance Network that contends consumers worry too much about what they eat and not enough about how much they exercise.
"We think funding an organisation that suggests we should keep drinking sugary drinks and just exercise more is a load of fizz," Choice said.
It slammed Swedish furniture giant Ikea for flogging "leather" couches on its Australian website that turned out to be made out of polyester and polyurethane.
The group also derided Kleenex for falsely claiming its "flushable" cleansing cloths would disintegrate like "toilet paper". Used wipes are causing sewer chokes.
"Wipe-related damage to sewerage systems is estimated at $15 million annually. We think the 'flushable' claim misleads consumers," it said.
Big bank NAB collected a Shonky for failing to pass on official interest rate cuts to credit card customers. It also hiked rates for its "low" rate card customers from 12.99 per cent to 13.99 per cent.
Also in the financial sector, the payday lending industry nabbed an award. The federal government is in the middle of reviewing the laws regulating the loan sharks, which can offer rates of more than 200 per cent, typically to cash-strapped borrowers.
"In one recent case, Cash Converters irresponsibly issued a pensioner 63 loans over six years. We think payday lenders are a school of predators, telling consumers to take out high interest loans so they can devour them in frenzy of debt," it said.
Choice gave an award to Nanosmart for spruiking laundry balls, priced at $50 a pop, it misleadingly claims allows you to wash without detergent.
"[Our] test found water alone did a better job. [We have] informed Consumer Protection Western Australia which is taking action," it said.
It also bestowed an award on Arnott's for creating its own "school canteen – meets amber guidelines" logo. It said the logo gave a "health halo" to Tiny Teddies that are "littered" with 100s and 1000s and classified as confectionery.
Mr Kirkland said more than 400 dud products were in contention this year.
"We hope the Shonkys encourage consumers to look critically at the goods and services they use, question poor service, hidden costs and the fine print beneath claims that seem too good to be true," he said.
2015 Shonky Award Winners
- Samsung for its recall efforts of faulty washing machines
- Kleenex for its "flushable cloths" that do not disintegrate for years
- Coca-Cola for its gifts to front group Global Energy Balance Network
- Ikea for selling "leather" couches made of polyester and polyurethane
- NAB for hiking rates on its "low" rate credit cards
- Payday lending industry for preying on vulnerable Australians
- Nanosmart for flogging laundry balls that do not work
- Arnott's Tiny Teddies for creating a false impression of health
Consumers concerned about their washing machine should call Samsung's Product Safety Hotline on 1800 239 655 or visit the company's website.
The affected models are SW75V9WIP/XSA SW65V9WIP/XSA SW70SPWIP/XSA SW80SPWIP/XSA WA85GWGIP/XSA WA85GWWIP/XSA.
