The Commerce Commission said today that it is concerned that misleading statements have been reported about the Edge Computer Ltd prosecution.
A Dunedin computer dealer and Edge are reported to have stated that Edge had not been charged with selling fake computer chips.
Judge Ian Borrin records in his written decision that Edge pleaded guilty to a charge alleging that it offered for sale computer motherboards described as having 256 kilobytes of cache memory when that was not the case.
He also states: "It is clear from these circumstances, and from other material in Court, that the defendant knew that these parts, despite their appearance and despite the words and numerals endorsed on them, were not the functioning chips they purported to be but were merely cosmetic."
Edge has also been reported to have claimed that the motherboards fitted with what its own faxes described as "dummy" memory chips worked at least as well as motherboards with real memory chips.
Judge Borrin rejected Edge's submission that the motherboards with dummy chips worked just as well and noted that, "dummy was an entirely appropriate term".
"Judge Borrin has specifically stated that Edge knew what it was doing when it sold computer components including dummy chips," Commission Chairman Dr Alan Bollard said.
"Even allowing for Edge having pleaded guilty and it being the company's first conviction, Judge Borrin still imposed a $50,000 fine, the biggest yet under the Fair Trading Act.
"Judge Borrin has endorsed the Commission's assessment that Edge deliberately misled its customers."
Copies of Judge Borrin's decision are available from the Commission.
Media contact: Communications Officer Vincent Cholewa
