|
Getting your Trinity Audio player ready...
|
The Commerce Commission has filed court proceedings against Brand Developers Limited, trading as The TV Shop, alleging the company engaged in exploitative and misleading practices when selling high-value products to consumers.
The TV Shop is otherwise known as ‘As Seen On TV Online Store’.
In a statement issued on Wednesday, February 4, Commission Deputy Chair Anne Callinan said the alleged behaviour amounted to unconscionable conduct – a serious breach of expected standards of business conduct in New Zealand.
“This is behaviour that we expect to see rarely, as it is a clear and obvious departure from what is expected from businesses acting in good commercial conscience,” Callinan said.
“Simply put, the alleged conduct the Commission has uncovered here is some of the worst we have seen and involves the use of high-pressure sales tactics on customers who were vulnerable, including customers with cognitive impairments.”
Allegations span nearly two years
The Commission alleges The TV Shop engaged in exploitative and misleading practices between August 2022 and June 2024, relating to the sale of high-value TEBO and Bambillo-branded beds and chairs.
According to the Commission, the company used unfair, high-pressure sales tactics and sold products on long-term payment plans it knew were unaffordable.
The Commission also alleges The TV Shop failed to properly ensure customers understood the terms of the sale, including the nature of “30-day trial” arrangements.
“We argue the company would then employ aggressive post-sale retention and debt collection tactics,” Callinan said.
The Commission alleges some customers targeted by the conduct were suffering from serious illnesses, including cancer, or were experiencing symptoms of cognitive decline.
First cases under new unconscionable conduct law
Alongside the case against The TV Shop, the Commission has also taken an unconscionable conduct case against Tech Vault Enterprises Ltd, trading as HouseSmile.
That matter is scheduled for sentencing at the Hamilton District Court on February 10.
Together, the two cases are the first unconscionable conduct prosecutions brought by the Commerce Commission since the prohibition was added to the Fair Trading Act.
“Both cases reinforce our commitment to acting firmly and decisively when we detect unconscionable conduct, which is an enforcement priority for the Commission,” Callinan said.
If found guilty of unconscionable conduct, businesses can be fined up to $600,000, while individuals can face fines of up to $200,000.
The courts can also impose additional orders, including requiring businesses to compensate affected consumers or vary contracts under the Fair Trading Act.
The Franklin Times has approached The TV Shop for comment.
