A maker of iconic Australian "UGG Boots" has been caught out by the Australian Competitor and Consumer Commission (ACCC) for making false claims that its boots are Australian-made.

Kangaroos, vegemite and sheepskin UGG boots are all part of the Australian cultural shtick. But Queensland-based online trade r Happiness Road, trading under the name Koala Jack, has admitted that its UGG boots are actually all made in China.

The company also used the green and gold Australian Made logo on its website without authorisation from the Australian Made Campaign.

Happiness Road is now required to pay refunds to customers who were misled by its conduct, and the company's sole directo r will undertake trade practices compliance training.

"The ACCC considers country of origin claims to be a particularly valuable marketing tool for businesse s, as many consumers place a premium on goods that are Australian made," ACCC Deputy Chair Michael Schaper said.

"While the ACCC will continue to monitor advertising of this nature to ensure compliance with the Australian Consumer Law, businesses need to be aware there are many others out there watching. The chance of being caught out is extremely high," he added.

Lawyer Sally Scott told SmartCompany that the company is fortunate not to have been slapped with a fine, and the current competition watchdog chairman is more focused on educating businesses and consumers than penalising.