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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news