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

 

Kiwibank admits advertising liable to mislead


Kiwibank admits advertising liable to mislead

In a settlement with the Commerce Commission, Kiwibank Limited has admitted that an advertising campaign it ran in September and October last year promoting 'cheaper home loans guaranteed' was liable to mislead consumers.

Contrary to its advertising, Kiwibank did not in fact guarantee 'cheaper' or 'the cheapest' home loans. Instead, it intended to match, rather than undercut, a competitor's rate if it were proven that over a six-year period, an equivalent product was cheaper.

The Commission also considered that Kiwibank's advertising was liable to mislead consumers into believing that Kiwibank would undercut loans made by any home loan lender. In fact, the offer only applied to equivalent home packages offered by banks with branches nationwide. This particular matter was drawn to the Commission's attention by a non-bank home loan lender.

Kiwibank has now amended its loans processes to ensure that it does in fact deliver on its promises. It has also amended its advertising to ensure that consumers understand that the offer only applies to equivalent home loan packages offered by banks with branches nationwide.

"This settlement is a very good outcome for the consumer", said Director of Fair Trading Deborah Battell. "If competition is to be effective, consumers need to be able to rely on the information provided by companies so that they can make an informed choice about which of the goods and services they will buy".

The advertising ran during September and October 2002 in newspapers and on television. The television commercial screened 94 times during this period.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>