Bed Retailer in NZ Fined For False Advertising

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A bed store with distributorship at Auckland, Hamilton, New Plymouth, Palmerston North, Wellington, Christchurch and Dunedin has been fined $26,400 by the Commerce Commission in New Zealand for putting products up on sale, claiming mark down prices, when these were in fact their regular prices.

Advek Holdings, trading as Back to Bed, was found guilty in Christchurch District Court on Monday of breaching the Fair Trading Act 12 times. Commerce Commission chairwoman Paula Rebstock said the retailer had advertised as being on sale when they were actually being sold for the usual price.

“Retailers that make misleading claims about the nature of sales not only harm , they undermine the competitive process. Advertising sale prices that are no cheaper than every day prices can put [retailers] in breach of the Fair Trading Act.”

Advek Holdings ran an extensive campaign advertising at special prices in newspapers and on the radio between November 2004 and June 2005.

The advertisements claimed that could make “massive savings” and that the retailer had “slashed prices” and offered specific percentages off the “normal” prices of its .

Via TV3 N

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