Noel Leeming charged over alleged Fair Trading Act breaches
The Commerce Commission announced it had filed criminal charges in the Auckland District Court against the wholly-owned subsidiary of The Warehouse Group Limited, alleging it had breached the Fair Trading Act.
Deputy chairperson Anne Callinan said its "price promise had many limitations and conditions which weren't made obvious to customers".
"For over a decade Noel Leeming has prominently promoted their 'Price Promise,' which is their commitment to match any competitors' price. We believe their price promise claim was misleading and in breach of the Fair Trading Act," she said.
"Price match advertising gives the impression that customers will be able to show up and get a match for competitor's prices. It's crucial that businesses promoting any price match offer factor in the overall impression of the claims they make, and that all information is clear to customers."
The Commission has also filed charges against Noel Leeming regarding promotions where the advertised product or price was different to what could be purchased, and allege the company gave incorrect or misleading information about consumers' rights under the Consumer Guarantees Act when customers complained about faulty products.
Callinan said Noel Leeming had previously been "one of our most complained about traders, and we were concerned about the range of issues consumers raised".
Noel Leeming's chief operating officer Jason Bell said the company was "baffled" by the decision to press charges.
"We firmly maintain that we have committed no offence and will vigorously defend this," he said in a statement.
Bell said "our terms and conditions are fair and presented just like other retailers, and when we can't price match, we often don't get the sale".
"We're perplexed by the Commission's claim that price matches were difficult to obtain, when over 250,000 Kiwis saved money with our Price Promise between 2019-2021.
"Price matching is widely used by the industry, and it helps drive competition, and without it, Kiwis will end up paying more.
He said if the business doesn't get something right, it would work hard to ensure fair resolutions for our customers.
The morning's headlines in 90 seconds, Mama Hooch rapists appeal, Ukraine's new message to Russia, and Jason Momoa's plans here. (Source: Breakfast)
"Some of the additional matters raised by the Commission occurred during the Covid-19-pandemic, when all businesses experienced unprecedented pressure, and our team went to extraordinary lengths to help Kiwis access the products they needed, handling over ten million transactions.
"It is concerning that significant public resources and time have been spent on this matter for over three years, while overlooking more pressing potential harm to consumers from overseas online retailers operating outside of the rules. The system needs to evolve and hold all retailers selling to New Zealanders to the same standards of care."
Callinan said "price match advertising gives the impression that customers will be able to show up and get a match for competitor's prices.
"It's crucial that businesses promoting any price match offer factor in the overall impression of the claims they make, and that all information is clear to customers."
The maximum penalty for breaches of the Fair Trading Act, is $600,000 per charge for businesses.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Otago Daily Times
6 hours ago
- Otago Daily Times
Penguin colony has best year yet
New figures show the Ōamaru Blue Penguin Colony is celebrating its best year yet. More than 80,000 people flocked to see the world's smallest penguins. The milestone is a major step for the business which is now able to invest in a visitor centre refurbishment, enhancing the overall experience. "Covid cut our visitor numbers by 85%. To have now bounced back to set a new record, even though New Zealand's international visitor numbers are not at pre-pandemic levels, is a huge win. "We're extremely excited," the colony's new operations and commercial general manager Cyndi Christensen said. "It's not just about the numbers, it's proof of the deep connection people feel for our little penguins and what we do to protect them."
Otago Daily Times
6 hours ago
- Otago Daily Times
Farming background handy with rural clients
Selwyn Smith grew up on a Riversdale sheep and beef farm. Heavily influenced by the 1980s era, "which probably dissuaded everyone my age to go and do something different from farming", he chose a career off the land. But his parents remained on the farm, which was now leased out, and it was that ongoing tenure which gave him an understanding of challenges farmers faced, including compliance, regulation, succession and exit, which was to prove very beneficial when dealing with many rural clients, Mr Smith said. Plus there was the hands-on knowledge of farming practices that came with being a farmer's son as he recalled drafting lambs early morning and the school bus going past — "and I wasn't on it". An economics degree at the University of Otago and a postgraduate diploma in financial planning opened the door for Mr Smith to work in capital markets and give personalised investment advice. He started his career at the BNZ bank in Ranfurly, then one of three banks in the town. It was to give him a good grounding and not just in finance. In his first week, local publican Dave Weyer handed him a tam-o'-shanter and informed him he was on a curling team and his job was to bring the flagons of beer to the curling rink in Naseby every Monday. The learning curve of curling was steep, particularly with the sport's "own unique language", but living in the sports-mad Maniototo also meant that a passion for all sport was necessary. The hotel, bank and radio station formed the hub of the community and he could receive a phone call on a Saturday morning from someone at the service station whose eftpos card was not working; there was an expectation he would be able to "fix it on the spot". From there, Mr Smith returned to Dunedin and worked at various branches of the BNZ before shifting to Wellington to continue working for the bank. It was an "outstanding" time and he enjoyed the pace of life in the city. Clients were also busy people who made decisions quickly. But when a job opportunity arose in Dunedin with BNZ private banking, there was a lure to return given his fondness for hunting and fishing in the back country. Following some changes by BNZ in 2018-19, Mr Smith and colleague James Hunter decided they needed to find a new home to support their high-net-worth clients with the right level of research. They saw Jarden as the right fit for them and both resigned about a week before the Covid-19 pandemic hit, an unsettling period as they attempted to find somewhere to start an office under Covid restrictions. Ironically, the challenges of Covid turned into opportunities and allowed them to spend time building a business, getting the platform right and then opening the door to their Vogel St office to past and new clients, Mr Smith said. UK-born Mr Hunter moved to New Zealand with his family when he was 12. Initially, he thought he wanted to be a lawyer and he got into second-year law at the University of Otago but he realised that it was the financial papers he was doing on the side that he particularly enjoyed. Graduating in 2005, he got an entry-level job with BNZ in Wellington and when his now wife got a job opportunity in Sydney just before the Global Financial Crisis, they moved across the Tasman. His first role was with Macquarie Private Bank and he then moved to ANZ, then to CBA Institutional Bank and then CBA private banking. Sydney was a "fantastic" city to live in for a decade but it was also a bit of a rat race and he and his wife decided to return to New Zealand to be closer to family, Mr Hunter said. As both sets of parents were living in Queenstown, Dunedin was a natural fit to move to and also to start a family and Mr Hunter joined BNZ again. Mr Smith said the decision to establish the Jarden, now JBWere, office had paid off. It operated in a city with two very large competitors and its focus had to be unashamedly on high-net-worth investors. The consolidation of the two businesses meant the best parts of both businesses were brought together. JB Were would continue to be a boutique firm that developed bespoke solutions for its clients. A key part of the firm's operating model was the five in the office — him, Mr Hunter, wealth management adviser Tony Conroy, associate adviser Emma Townsend and associate Kate Lilley — focused on client solutions as a team, Mr Smith said. "The working-from-home model wasn't going to suit us very well. It doesn't allow us to grow discussions and solve problems as a team. It's a key part of our operating model to throw ideas around and solve issues where the team can come up with a better solution than one person." They could solve the most complex investment needs and had a large pool of offerings to choose from, but they were not tied to any type of investment. Often, the firm found, as clients moved into retirement, their financial advisers became more important than a solicitor or accountant because ongoing investment advice was needed to ensure that capital lasted. Dunedin born and bred, Emma Townsend started at Jarden five years ago. After studying at Otago Girls' High School and completing a commerce degree in tourism and management at the University of Otago she moved to Australia, where she ended up working for ANZ and got into financial services. Returning to Dunedin for family reasons, she worked initially for Craigs Investment Partners before joining Jarden, where she built some models to help run portfolios. Dealing with clients from all walks of life was the best part of her job and clients she had brought to the firm tended to be women, she said. In the past, it was predominantly men who made financial decisions in relationships and it was nice to see the change, she said. Also Dunedin raised, Tony Conroy initially completed a law degree with the intention of working in court and immediately got on a plane and went to London for four years. He worked in various roles and met his English wife before returning to New Zealand in December 1989, when New Zealand was "in one hell of a recession", Mr Conroy said. He met Mr Smith at BNZ, where he was a private banker for five years. From there, he worked at Forsyth Barr before he was headhunted by Westpac to go into private banking. He phoned Mr Smith when he heard his former colleague had left the bank to congratulate him on his new move and the pair got talking, which eventually led to him joining the new office. JBWere had a good culture and it was entering a new phase and, as Mr Smith put it, every day was a new day in what was a very fast-paced industry.
Otago Daily Times
6 hours ago
- Otago Daily Times
Shop owner ships out
Outgoing Peak Interiors owner Kath Evans. PHOTO: PHILIP CHANDLER Kath Evans, who's among Queenstown longest-serving retailers, is closing shop with a final sale at her Frankton home decor shop, Peak Interiors, from tomorrow. After setting up Play It Again Records in Invercargill in 1972, she set up a Queenstown branch in the then-new O'Connell's Pavilion in 1988, which closed down in 2010. By then she'd opened Peak Interiors — originally First Impressions — which traded from various premises, the latest being the Five Mile shopping centre. "There's not really any specialties in that kind of thing left in Queenstown," she says. Evans believes compliance costs, electricity and transport costs in the area and, especially, rising rents have made it too hard for small local independent retailers to make a profit. She also believes retail's never recovered since Covid. However, she'll still be able to service longtime customers one-on-one. And she'll continue her successful Peak Interiors homestaging business, which is popular with many local real estate agents, and her fitouts for developers and builders. "When I opened my homestaging business many years ago, it was common to see real estate ads with rubbish bags featured in kitchen photos, unmade beds in bedrooms. "By presenting homes to international standards, it's the best investment people can make for their property when they're selling." Taking over her Five Mile premises will be the Golf Warehouse — ironically, next to The Warehouse.
