Bike Barn charged with misleading customers

12 September 2016

Bike Barn charged with misleading customers over its sale prices

The Commerce Commission has filed 16 charges against Bikes International Limited and Bike Retail Group Limited (which both operate as Bike Barn) relating to misleading conduct.

These charges were filed in the Auckland District Court under the Fair Trading Act 1986. They relate to alleged misrepresentations which were made during 25 marketing campaigns by Bike Barn between July 2013 and June 2015.

In particular, the Commission alleges that Bike Barn’s marketing campaigns were likely to mislead consumers about:
The savings customers would make on the purchase of bikes. For example, bikes were advertised as “half price” when in fact they were usually sold at that price.

There being a limited opportunity to get bikes at particular prices. For example Bike Barn advertised a “clearance” sale, when in fact the bikes were available at the “clearance” price before and after the clearance sale.
Bike Barn has co-operated with the Commission’s investigation and has indicated that it intends to plead guilty to the charges. As this matter is before the Court, the Commission cannot comment further at this time.

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