Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Harvey Norman fined $7,500

Media Release

Issued 11 May 2001/49

Harvey Norman fined $7,500 for misleading claims about computer screens: advertisers must understand technical terms that they use

The conviction and fining of Harvey Norman Stores (NZ) Pty Limited in the Manukau District Court today is a warning to all advertisers who use technical terms: they must understand what the terms mean.

Commerce Commission Chair John Belgrave said that Harvey Norman was fined $7,500 for making misleading claims about the screens on Compaq Presario 1245 notebook computers. The screens were not of the quality claimed.

When interviewed by Commission staff, Harvey Norman's New Zealand general manager for computers said that the technology was relatively new, was not well understood and the company did not realise that it had used terms incorrectly.

"The message is simple," Mr Belgrave said. "Advertisers must know what they are talking about. It is their responsibility to get it right.

"Technical terms used incorrectly can mislead customers into believing that they are getting a better product and can unfairly disadvantage competitors."

In this case, Harvey Norman's advertisements stated that Compaq Presario 1245 notebook computers had "HPA Active Matrix Displays". Active screens are a selling feature of computers because they give a better quality image. These computers did not have active screens.

The screens were HPA, which is an improved type of passive screen.

Harvey Norman sold approximately 100 Compaq Presario 1245 notebooks in New Zealand.

The prosecution relates to advertisements published in The Press and New Zealand Herald newspapers, and followed a complaint from a rival computer retailer.

The complainant first contacted Harvey Norman and pointed out the mistake in the advertisements. Two weeks later the advertisements were repeated with the same mistake, and the complainant then contacted the Commission.

Media contact: Chief Investigator Christchurch Stuart Wallace Phone work (03) 371 0297, cellphone 025 868 219

Senior Advisor Communications Vincent Cholewa Phone work (04) 498 0920, home (04) 477 0039

Commission media releases can be viewed on its web site www.comcom.govt.nz

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news