The Mill Liquorsave fined $5,000
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.