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Trader fined for clothes without proper labelling

Trader fined for clothes without proper labelling

An Auckland children's wear retailer was fined $7000 in the Manukau District Court on Friday for selling clothing without the correct labelling.

Tian En Trading Company, trading as Bobbe Children's Wear, and director Zhu Ming Lin both pleaded guilty to breaching the consumer information requirements of the Fair Trading Act by failing to attach country of origin, fibre content or care labelling to clothing and footwear it was selling.

Commission investigators visited the store and, after finding a large amount of clothing lacked the labelling required under the regulations, informed the store manager of the potential breach. However, on subsequent visits, Commission staff found the situation had not been rectified and a large number of garments still did not have the necessary labelling.

"Clearly and correctly labelled clothing is an important issue for many consumers, who make their buying choices on the information provided", says Acting Director Fair Trading Graham Gill.

"Many people will be influenced by what a garment is made from, whether it is easy to care for or a garment's origin. They need to see this information on the label so they can make a decision based on the facts."

"Businesses that do comply with the regulations will often incur additional costs, reducing their competitiveness against those who choose to ignore the regulations," says Mr Gill.

"Ms Lin was made aware of her obligations under the Fair Trading Act but chose to disregard them, disadvantaging her competitors who played by the rules."

Background

Section 27 of the Fair Trading Act 1986 requires the disclosure of information relating to the kind, grade, quantity, origin, performance, care composition, contents, design, construction, use, price, finish, packaging, promotion, or supply of goods or services.

The Consumer Information Standards the Commerce Commission enforces under the Fair Trading Act are:

- Care labelling standards
- Country of origin labelling standards
- Fibre content labelling standards
- Used motor vehicles standards

ENDS

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