Truck shops operating in Waikato have been given two highest fines yet in the Commerce Commission's crackdown on mobile traders.
In a report last year the Commerce Commission said many mobile traders often selling high goods on credit in vulnerable communities. Photo: 123rf
Ace Marketing of Hamilton pleaded guilty in the Auckland District Court to 28 charges including failing to provide information to customers about their loans and breaching the Fair Trading Act.
It was fined $150,000 and ordered to refund customer fees relating to more than 1500 contracts.
Smartstore of Cambridge pleaded guilty to 11 charges of failing to provide disclosure and making misleading statements on its loan contracts and was fined $135,000.
So far this year the commission has prosecuted nine mobile traders - companies that mainly operate by selling household goods door-to-door or from trucks parked in the street.
In a report last year the commission found many mobile traders were selling high priced goods, often on credit, in vulnerable communities, with low levels of compliance with important consumer protection laws.
Its year-long investigation into the industry found that 31 of the 32 traders identified did not comply with all of their obligations the Fair Trading Act and consumer finance legislation.
A commissioner, Anna Rawling, said the law was clear about the type of information they need to give consumers - and these cases show that if they get it wrong, the consequences can be severe.
