Commission prosecutes The TV Shop, arguing it manipulated 'customer' reviews and misled shoppers.
The Commerce Commission has filed 13 representative charges against The TV Shop (Brand Developers Limited), that focus on marketing and promotional practices it believes are likely to mislead Kiwi consumers. Below is what Keith Norris, MA's Compliance Consultant, had to say:
You’re a committed, enthusiastic marketer and you have products and services which are relevant and exciting for your target market. Your success as a marketer is measured by how well you tell the story, how your creative copy woos your customer into making buying decisions.
But you’re also a professional and you have regulations and guidelines to work within so you are expected to ‘tell it as it is’. There’s a myriad of legislative requirements for you to be aware of, but for this article lets just stick to the Fair trading Act. The FTA prohibits misleading and deceptive conduct, unsubstantiated claims, false representations, unfair terms in standard consumer contracts and certain unfair practices. This piece of legislation is overseen by the Commerce Commission, and they can become fierce protagonists if you overstep the law. Under the FTA, companies can be liable for fines up to $600,000 and individuals up to $200,000!
Read Commerce Commission's latest media release here and visit their website for a quick guide on your obligations as a marketer.