Published15 Nov 2002
The Mill Liquorsave fined $5,000 for
"No one undersells us" claim
The Mill Liquorsave's "No one undersells us" claim cost the company
$5,000 in the Auckland District Court today when it pleaded guilty to
breaching the Fair Trading Act for conduct that was liable to mislead
the public.
Following several warnings and a settlement agreement with the Commerce
Commission in 2000 and 2001 regarding misleading promotional statements
and advertising, the Commission laid charges against the company in
March this year.
The Commission's investigation into The Mill Liquorsave's claim in
nationwide stores that "No one undersells us" included a comparative
pricing analysis that demonstrated that the company was no cheaper than
competitors on a range of products, and more expensive in several
instances.
Commerce Commission Director of Fair Trading Deborah Battell said that
the company's apparent disregard for the Fair Trading Act, especially
given its undertakings to implement a compliance programme, was key in
the Commission's decision to prosecute.
In sentencing, Judge Morris said that it concerned the Court that it
took three warnings unheeded and a prosecution for the company to take
into account the proper action required.
Media contact: Deborah Battell, Director of Fair Trading
Phone work (04) 924 3760, mobile 029 924 3760
Jackie Maitland, Communications Manager
Phone work (04) 924 3708, mobile 029 924 3708
