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15 March 2017

Trader fined $145k for Christmas deals

Company also claimed a product could protect from radiation.

A company that sold door-to-door in the North Island has been fined $145,000 for misleading claims about its "Christmas Deal Bundles" and other breaches of the Fair Trading Act.

Customers of Sales Concepts were told bundles of electronic goods would arrive by Christmas 2015 if they were up to date with payments. But the company only intended to supply one of the products in the bundle and provide the rest once they were paid off in full.

Judge Sinclair said it was obvious customers intended to use the goods as Christmas presents and the company would have known its staff were making the misrepresentations.

Further charges related to Sales Concepts making misleading representations about the products being made in New Zealand, the total price of the Christmas bundle, the inclusion of a delivery fee and customers’ cancellation rights. It also failed to comply with disclosure requirements for uninvited direct sales agreements as a number of the agreements were not dated, had illegible handwritten terms or unclear descriptions of the goods to be provided.

The company also got a warning letter last year for claims made about its Envirochip products. It told people the radiation from using everyday electronic devices could cause cancer and infertility. It said its Envirochip products could protect them from the radiation.

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