Story image

ComCom warns online phone store for discount claims

22 Aug 18

Amaysim Operations, trading as Buy Mobile, has been warned by the Commission for the unsubstantiated claims it made about discounts on the price of some mobile phones.

The Commission believes Buy Mobile is likely to have breached the Fair Trading Act because it could not provide the grounds or information it relied on when advertising specific dollar savings for some of its advertised mobile phones.

By law, businesses must have reasonable grounds for making a claim at the time it is made.

For example, Buy Mobile advertised a $930 discount on a Samsung Galaxy S5 selling for $339.90 on Buy Mobile’s website.

Buy Mobile said its staff relied on publicly available information about competitor’s prices to make discount claims, but it could not provide the Commission with this information when asked to do so.

Buy Mobile has stopped making comparative pricing claims on its website and products are now being offered for sale with reference to the purchase price only.

Commissioner Anna Rawlings says price comparisons can give consumers useful information and can promote competition between retailers.

“At the time a claim is made traders should be able to explain the basis for it and show where they got the information from,” Rawlings says.

“When selling products like mobile phones where prices can change quite quickly, traders should have a system in place to ensure that any advertised discounts remain accurate and comparisons with other retailers are current.”

“It is unfair to consumers who rely on pricing claims and to other businesses offering genuine savings, if price savings are exaggerated, or comparative information is not from a credible and current source.”

In a release, the Commission outlines that consumers need to be able to rely on the accuracy of claims made by retailers.

It notes that it is illegal for a trader to make a claim about a good or service without any reasonable basis and directs people to its website for further information on how to avoid misleading consumers.

CERT NZ highlights rise of unauthorised access incidents
“In one case, the attacker gained access and tracked the business’s emails for at least six months. They gathered extensive knowledge of the business’s billing cycles."
Report finds GCSB in compliance with NZ rights
The Inspector-General has given the GCSB its compliance tick of approval for the fourth year in a row.
Game review: Just Cause 4 on PC
Rico Rodriguez returns to wreak over-the-top havoc for a fourth time. This time the island nation of Solís is our hero’s sandbox, ripe for destruction.
Hands-on review: Logitech G502 HERO gaming mouse
My favourite feature of the G502s is the ‘Sniper’ button, which is found on the left hand side of the device. When held, this lowers the DPI and allows you to achieve maximum accuracy whilst honing in on a kill on your favourite FPS title.
Interview: ZeniMax Online's game director talks Elder Scrolls Online
FutureFive’s Darren Price sat down with Matt Firor, ESO’s designer and now president and game director at ZeniMax Online.
IDC: Tablets stay dead, notebooks keep head above water
An IDC report predicts a soft personal PC market, slipping into further decline with the exception of notebooks, gaming PCs, and business PC upgrades.
A hands-on guide to Christmas shopping by Santa’s IT elf
Ho, ho, ho! So you’re back again for more inspiration for that hard-to-buy-for person in your life?
Govt commits $15.5m to digital identity research
“With more and more aspects of our lives taking place online it’s critical the government takes a lead to ensure New Zealanders have control of how and who uses their identity information,” says Minister Woods.