The TV Shop (Brand Developers Limited), is facing charges of manipulating and misleading shoppers.
The Commerce Commission has filed "13 representative charges" against the company that "focus on marketing and promotional practices it believes are likely to mislead Kiwi consumers".
"This case involves three different kinds of representations made to consumers which the Commission alleges were misleading. It should emphasise for businesses the importance of making sure that all promotional and marketing activities are accurate, unambiguous and not misleading," Commerce Commission’s General Manager of Fair Trading, Vanessa Horne said.
The Commission alleges that The TV Shop breached the Fair Trading Act by:
- Misleading consumers about the popularity of goods when staff members posted reviews on various online review platforms about products without disclosing their affiliation to the business and removed some low-rating reviews on its own website.
- Misleading consumers about remedies available to them if something went wrong with their products by implying to consumers that they did not have any other rights to refunds or remedies outside of its own '30-day Money Back Guarantee scheme' or 'risk-free trial' when consumers wanted to return products because they believed they were faulty or mis-advertised. In fact, consumers may have had rights and remedies available to them under the Consumer Guarantees Act.
- Misleading consumers about the nature of products sold when it advertised promotion(s) for its Air Roaster Pro, offering an accessory pack variously as “free” or a “bonus” and on a “special offer” when the Air Roaster Pro was never offered for sale without the accessory pack, and the product was sold as a “special offer” continuously between 2018 and 2021.
Horne gave some advice to consumers looking to grab a bargain.
"Read reviews across different platforms to get a picture of the product you’re buying, read the terms and conditions and understand your rights under the Consumer Guarantees Act.
"If time allows, track prices over time and shop around to make sure you’re getting the deal and making the savings that you expect."
The Commission said it has previously successfully prosecuted The TV Shop twice since 2015.
In 2022, The TV Shop was fined $123,500 after failing to comply with extended warranty disclosure requirements, and in 2015 the business was fined $153,000 for misrepresentations that a ladder being sold or advertised had a certification when it did not.
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