Temu scores zero on ethical fashion scorecard

Temu scores zero out of 100 on Ethical Fashion Report, common consumer rip-offs to be banned, and the frightening truth behind Halloween. Here are five things you may have missed this week.

Fashion labels named and shamed for poor worker practices

Millions of workers in the global fashion industry face injustice, abuse, low wages, and modern slavery.

And almost nine out 10 of the biggest fashion companies are not paying a fair wage across their supply chains.

Those are the findings of Baptist World Aid's Ethical Fashion Report, which reviewed 120 fashion companies (which together control 460 brands), giving them a score out of 100 based on how they're going at protecting workers and the environment.

The results paint a poor picture of the industry.

The average score is a pitiful 39.3 though this is up from 29.2 in 2022.

Temu scored zero out of 100, but so did far pricier brands including Nine West, Stussy and Windsor Smith.

Mighty Good Basics was the top scorer with 90/100.

That's followed by a big drop down to second highest scorer - Patagonia (69/100).

The report is worth a look to see how some of our most expensive brands are profiting at the expense of workers who make the garments we buy.

Help for one in 10 Aussies paying subscriptions they can't escape

Cancelling a subscription can be easier said than done.

The Consumer Policy Research Centre (CPRC) says 75% of Australians with subscriptions have had some form of negative experience when trying to cancel.

One in 10 have given up, and kept paying for a product or service they no longer need or want because of a subscription trap.

So it was welcome news this week that the federal government is taking action to ban a number of common consumer rip-offs including hard to cancel subscriptions.

Also on the radar is 'drip-pricing', where fees are progressively added during the purchase process (think airline tickets).

Much-maligned dynamic pricing (airlines again), which can see companies jack up prices in response to demand, is also heading for the chopping block.

Erin Turner, CEO of the Consumer Policy Research Centre (CPRC) says, "A ban on unfair business practices will save Australians millions in money, countless hours, and immeasurable wellbeing."

$450 million is real horror of Halloween

One in five Australians is planning to celebrate Halloween on October 31, with the spooky spending expected to average $93 per person - a total of $450 million.

"From costumes to confectionery, Australians are enjoying getting ghoulish during the lead up to Thursday, October 31," says Paul Zahra, CEO of the Australian Retailers Association.

The $450 million sugar hit will no doubt be appreciated by retailers though Zahra notes Halloween spending this year is down $40 million compared to last year's figure of $490 million.

Behind the fun and trick-or-treating, the dark side of Halloween is the sheer volume of waste it creates.

Less than 1% of costumes are recycled. And according to the World Economic forum, in the US alone, a terrifying 900,000 tonnes of pumpkin are trashed following Halloween, rather than used as food or composted.

It is possible to have a green Halloween - and save money - by making your own costume or swapping with friends, buy locally grown pumpkins where possible and prepare recipes using the inside flesh. Look for lollies and treats with minimal packaging or make your own.

CommBank breaches spam laws...again

The Commonwealth Bank of Australia (CBA) has paid a $7.5 million fine for breaching spam laws.

In the 18 months to April 2024, more than 170 million marketing emails were sent that didn't offer a way to unsubscribe. Of these messages, 34.8 million were sent to people who either had not consented, or had withdrawn their consent, to receive messages.

This is CBA's second major breach of spam rules. The bank paid a $3.55 million penalty in May 2023 for sending 65 million emails without working unsubscribe arrangements.

Nerida O'Loughlin, chair of the Australian Communications and Media Authority (ACMA), said the further breaches and "vast scale" of CommBank's non-compliance was unacceptable.

"Australians are sick and tired of this kind of spam intruding on their privacy and it's clear CBA did not have its systems in order," says O'Loughlin.

CBA says it is hiring an independent consultant to help improve its compliance with spamming laws.

Ever checked your super fund fees? One in three haven't

Last year saw super funds rake in over $32 billion in fees - money that came straight out of our retirement savings.

Yet most Australians are in the dark about the fees they're paying.

Vanguard research shows two in three Australians don't realise their super fund charges multiple fees.

A third have never reviewed or compared fund fees.

"Australians will be shocked to find out how much is being drained from their retirement savings through fees," says Daniel Shrimski, Vanguard Managing Director.

Most funds charge multiple fees including admin fees, investment fees, transaction fees, activity fees and even performance fees.

High fees can cost a typical full-time worker around 12% of their super balance - or $100,000 - by the time they retire.

Shrimski notes, "When it comes to how fees are presented on websites, social media and in advertising, there is no consistency. It's confusing, unclear, and impossible to compare."

While Vanguard is pushing for greater transparency around fees, the findings are a cue to check out what you're paying in fund fees.

The Moneysmart website features a calculator that shows how fees affect your final super balance.

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