Commerce Commission takes court action against NZ distributor of cellulite product "Cellasene"
Published28 Jul 2000
Commerce Commission takes court action against NZ distributor of cellulite product "Cellasene"
The Commerce Commission is prosecuting the New Zealand distributor of cellulite product "Cellasene", Bionax New Zealand Limited, for allegedly making misleading claims about the effectiveness of Cellasene.
Commission Chair John Belgrave said that the Commission is alleging that Bionax breached the Fair Trading Act, which prohibits misleading conduct in relation to goods.
Between December 1998 and April this year Bionax made claims in television advertising, in brochures, on Cellasene packaging and on inserts in the packets that Cellasene would treat, substantially reduce or improve the appearance of cellulite. The Commission's opinion is that these claims are misleading.
The Commission filed informations in the Auckland District Court on Wednesday July 26 and the company has now been advised of the prosecution. If the Court finds Bionax guilty, then it can impose fines of up to $100,000.
Background
The Fair Trading Act states:
"Section 10 Misleading conduct in relation to goods
10 No person shall in trade, engage in conduct that is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of goods."
The Commission is alleging that Bionax engaged in conduct that was liable to mislead the public about Cellasene's suitability for a purpose.
