Menu
​Mobile electronics reseller pleads guilty to false Christmas delivery promise

​Mobile electronics reseller pleads guilty to false Christmas delivery promise

Mobile trader pleads guilty to ten charges in the Auckland District Court.

Mobile trader Sales Concepts Limited (Sales Concepts) has pleaded guilty to ten charges in the Auckland District Court, brought by the Commerce Commission under the Fair Trading Act 1986 (FTA) for misleading consumers.

Sales Concepts is an Auckland-based mobile trader which sells a range of electronic goods, including phones, tablets and speakers, to consumers door-to-door using catalogues and also online.

The North Island door-to-door reseller made misrepresentations to consumers between October and December 2015, that ‘Christmas Deal Bundles’ - a package of up to seven electronic goods - would be delivered by Christmas 2015.

As reported by the industry watchdog, these layby sales were offered to consumers on the basis that as long as they were up to date with payments, the goods would be delivered in time for Christmas.

The Christmas Deal promotion involved the sale of bundles of electronic goods for between $599 and $1,599, with customers paying for them by weekly instalments of between $20 and $50.

In December 2015, the Commission issued Sales Concepts with a “Stop now” letter and subsequently accepted Court Enforceable Undertakings from Sales Concepts to avoid further harm to consumers while the investigation continued.

As part of the undertakings, Sales Concepts were required to contact all customers who had purchased a Christmas bundle, giving them the option to either cancel the contract and receive a full refund, or continue the contract on the basis that all of the goods ordered would be delivered upon payment of the specified number of payments set out in their contract.

Sales Concepts also made 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 and consumer rights.

According to the Commission, the company also failed to comply with the FTA disclosure requirements for uninvited direct sales agreements because a number of the agreements were not dated, had illegible handwritten contractual terms or unclear descriptions of the goods to be provided.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags Sales Concepts

Featured

Slideshows

Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established and emerging partners on a memorable night in Auckland.

Reseller News ICT Industry Awards 2017 - Meet the winners...
Show Comments