Statement from Michael Hill

http://www.scoop.co.nz/stories/BU1811/S00938/jeweller-michael-hill-fined-169000.htm

Statement attributed to a Michael Hill International Limited (“Michael Hill”) spokesperson:

“Michael Hill has been fully cooperating with the NZCC in relation to this matter and today chose not to contest their technical classification of a Professional Care Plan (“PCP”) as an extended warranty.

“PCP continues to be a unique and valuable servicing arrangement which entitles our customers to services beyond those under the Consumer Guarantees Act. We will make the necessary changes to our sales brochure to reflect the extended warranty classification, which include a comparison table within the terms and conditions to clarify and differentiate the protections of the Consumer Guarantees Act and the unique benefits and services of a PCP.

“Michael Hill chose not to contest the single charge in relation to the sale of a PCP to an individual customer in 2016. This was an isolated incident where a refund was previously provided to the customer within a fortnight of their purchase, once the Company became aware that the sales professional may not have followed the correct procedure on this specific occasion.”

In addition to the above statement, please also see the below background points outlining the PCP in more detail.

• A PCP is a product offered to customers wanting additional services to maintain their jewellery in a near new condition over either a three-year period, or the lifetime ownership of a product.

• These services are in addition to the protections under the consumer legislation and include a number of ongoing benefits such as the regular cleaning and polishing of a product, the resizing of a ring, resetting of diamonds, tightening of stones or re-tipping of prongs.

• While legislation covers repairs as a result of a manufacturing defect, a PCP offers coverage for instances of accidental damage and services even when an item is in a good condition.

ends

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