Menu
Noel Leeming stung with $200K fine for misleading tech buyers

Noel Leeming stung with $200K fine for misleading tech buyers

Apple and Microsoft misrepresented by retail giant

Credit: Noel Leeming

Noel Leeming has been fined $200,000 for misleading consumers about their rights under the Consumer Guarantees Act (CGA), following a Commerce Commission prosecution.

The retail giant was convicted on eight charges under the Fair Trading Act, for making false or misleading representations to consumers about their rights under the CGA.

Spanning consumer goods such as mobile phones and laptops, each charge relates to a different complainant and the conduct occurred between September 2015 and January 2017 at seven Noel Leeming stores across New Zealand.

“This prosecution related to multiple consumers in multiple locations,” said Commissioner Anna Rawlings.

“It was not isolated or ‘one off’ conduct. Consumers complained to Noel Leeming about products and were entitled to have their complaints treated seriously, investigated properly and remedied where appropriate.

“Instead they were misled - sometimes repeatedly - about their rights under the law, at a moment when it really mattered to consumers that their legal rights were honoured.”

Rawlings said consumers were misled about the right to seek remedies for faulty goods from Noel Leeming rather than the manufacturer; the right to a refund for a faulty product and the right to a replacement for a faulty product.

Specifically, Noel Leeming made misrepresentations such as that a consumer had to contact Microsoft about a faulty product and that claims under the CGA about an iPhone had to be negotiated with Apple directly.

In sentencing in the Auckland District Court, Judge Nicola Mathers said there were “direct and significant departures from the truth in every case… consumers were denied their rights and had real difficulty dealing with Noel Leeming.”

Since 2007, Rawlings said the Commission has three times warned or issued compliance advice to Noel Leeming about potentially misleading consumers as to their CGA rights.

“These statements are simply wrong,” Rawlings added. “The CGA entitles consumers to receive a remedy from Noel Leeming, as the supplier. A supplier cannot refuse to deal with its customers and refer them to the manufacturer.

“The CGA is also clear about the circumstances in which a refund or replacement is available. These statements should not have been made to consumers.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftAppleCommerce Commissionnoel leeming

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments