In a settlement reached with the Commerce Commission, Ezibuy has admitted that it has breached the Fair Trading Act by incorrectly advertising and selling an acrylic/mohair throw as a 'mohair throw' with 'pure mohair pile'.
From October 2005 to September 2006, Ezibuy advertised the throw as a 'mohair throw' with 'pure mohair pile'. In September 2006 the label on the throw was amended to 'pure mohair pile woven into a wool acrylic nylon base', and the outer packaging still described the product as 'mohair throw' with 'pure mohair pile'.
After receiving a complaint about the nature of the throw, the Commission arranged for a sample of the throw to be tested. The results showed that the throw was 40% acrylic, 20% nylon, 30% mohair and 10% wool.
"This product which was being sold as 'pure mohair' actually contained only 30% mohair," acting Fair Trading Director, Stuart Wallace said. "However consumers buying the throw would have believed it to be made of mohair only, rather than a mix or blend of fibres."
"Consumers rely on information on packaging and labels when they make choices", says Mr Wallace, "So it is vital that the information is both apparent and accurate. This sends a clear message to retailers and manufacturers that pure means pure. Under the Fair Trading Act retailers have a legal obligation to ensure any representations they pass on are completely correct."
Between October 2005 and December 2006, over 11,000 throws were sold in New Zealand through Ezibuy stores, its website and via its catalogue. As part of the settlement, Ezibuy has agreed to re-label all existing stock, and ensure that all future stock is accurately labelled and packaged. Ezibuy will also place corrective advertising in two forthcoming catalogues, in all Eziby stores nationwide, and on its website. Any customers who consider that they were misled as to the nature of the throw are entitled to a full refund.
Background
The Fair Trading Act If the Commission decides that the labelling or representations made are likely to have breached the Act, it can take a range of enforcement actions including issuing a warning, entering into a settlement on the basis of undertakings or taking court action either through the criminal or civil jurisdictions. Court penalties for breaching the Act can include fines of up to $200,000 for a company and $60,000 for an individual. Only the courts can decide if a representation has breached the Act.
