Not So Promising? Noel Leeming's 'Price Promise' Leads To Criminal Charges

The Commerce Commission has filed criminal charges in the Auckland District Court against Noel Leeming, alleging multiple breaches of the Fair Trading Act, including the promotion and application of their ‘Price Promise’ which misled consumers.

“For over a decade Noel Leeming has prominently promoted their ‘Price Promise,’ which is their commitment to match any competitors’ price. We believe their price promise claim was misleading and in breach of the Fair Trading Act,” Deputy Chair Anne Callinan says.

“Price match advertising gives the impression that customers will be able to show up and get a match for competitor’s prices. It’s crucial that businesses promoting any price match offer factor in the overall impression of the claims they make, and that all information is clear to customers.

“We believe Noel Leeming’s price promise had many limitations and conditions which weren’t made obvious to customers and made any price matches difficult to obtain. Fine print should not contradict advertising claims or be used to conceal important information which could be critical to a person’s decision to buy goods or services.

“Noel Leeming has previously been one of our most complained about traders, and we were concerned about the range of issues consumers raised,” Ms Callinan says

The Commission has also filed charges against Noel Leeming regarding promotions where the advertised product or price was different to what could be purchased.

Other charges allege Noel Leeming gave incorrect or misleading information about consumers’ rights under the Consumer Guarantees Act when customers complained about faulty products.

“We expect big businesses to be clear and honest in their advertising. Consumers should be able to trust the information they receive when they are buying goods and services,” Ms Callinan says.

"The Commission will take action when we see misleading or deceptive conduct,” Ms Callinan says.

Background

Noel Leeming is a wholly-owned subsidiary of The Warehouse Group Limited.

The Commerce Commission is responsible for enforcing the Fair Trading Act. The Fair Trading Act is primarily concerned with trader behaviours that are likely to mislead consumers as to the price, performance or quality of their purchase. These behaviours can include anything from false claims about what a product is made from or where it comes from, through to key pricing details being hidden in fine print.

The maximum penalty for breaches of the Fair Trading Act, is $600,000 per charge for businesses.

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