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

 


Finance company fined for its part in toxic water claims

Finance company fined for its part in toxic water claims investigation

Auckland based finance company Tiny Terms Limited has been fined $77,200 in the Auckland District Court today for its part in the door to door sale of water filters by Love Springs Limited.

Tiny Terms provided finance for the purchase of Love Springs’ water filters. Consumers who agreed to purchase water filters were signed up to 2 year rent-to-own agreements.

As a creditor Tiny Terms was required to disclose information about the terms of the contract to debtors and to do so in a manner that could be clearly and easily understood. Tiny Terms failed to do this and as a result breached sections 17 and 32 of the Credit Contracts and Consumer Finance Act 2003. Tiny Terms also breached the Fair Trading Act by trying to enforce these contracts where it had no right to do so because of its inadequate disclosure.

Between July 2009 and December 2010, Tiny Terms entered into a total of 21,523 credit contracts and each of those credit contracts was for $1,595.

Commerce Commission Head of Investigations Ritchie Hutton said today’s sentencing sends out a strong message to both consumers and creditors.

“It is important that consumers understand the cost of buying goods on credit. Creditors must provide information to consumers about their credit contracts to help them do this and this information must be set out clearly. Where creditors, such as Tiny Terms do not do this they can expect to face significant penalties.”

“This brings to a close a very successful investigation involving Tiny Terms, Love Springs and Phillip Smart,” said Mr Hutton.

In December 2013, Love Springs and its director Phillip Smart were fined a total of $555,000 after Love Springs sales staff were trained to sell water filters using deliberate marketing tactics that took advantage of people’s fears about their health. As a result sales staff told consumers that local drinking water could cause cancer, birth defects and miscarriages and was dangerous to people’s health.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

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, Including Xtra: 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>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news