Bike Barn have been fined $800k for misleading advertisements

  • News
  • February 13, 2017
  • Bri Tither
Bike Barn have been fined $800k for misleading advertisements

Bike Retail Group and Bikes International, the combined operators of the Bike Barn cycle retailer in New Zealand, have been fined $800,000 in the Auckland District Court for running an advertising campaign that was misleading to consumers.

 The two firms pleaded guilty to a shared 18 representative charges brought by the Commerce Commission under the Fair Trading Act regarding marketing and sales conduct between 1 July 2013 and 30 June 2015.

Commissioner Anna Rawlings stated that “Bike Barn used exaggerated discounting strategies that gave the impression to customers that they were purchasing bikes at significant mark-downs from the normal retail price – typically 50% off. It also advertised clearance specials that created an impression that the discounts were available for a limited time only. Neither was true. In fact, the discounted prices were Bike Barn’s usual selling prices. Out of nearly 6000 bike sales we analysed during our investigation, only 30 were sold at the so-called full price.”

Rawlings continues on to say, “Today’s judgment sends a strong message to all retailers that employ discounting strategies. Sales are an important marketing tool and, when genuine, drive competition and value for consumers. But it’s vital that deals offer a real saving and products are not promoted in a way that entices consumers to make a purchase under false pretences.”

Bike Barn has changed its advertising and discount strategy in response to the investigation and have apologised for any confusion caused by their misleading advertisements. The Commissioner has said that the judgment sends a strong message to retailers about discounts.

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Mark Powell joins the Stihl Shop board of directors

  • Who's Where
  • August 18, 2017
  • Sarah Dunn
Mark Powell joins the Stihl Shop board of directors

Former The Warehouse Group chief executive Mark Powell has joined the Stihl Shop retail network’s board of directors. He is now an independent member on Stihl Shop’s advisory board. Stihl Shops are stockists of Stihl products such as chainsaws, lawn mowers and other power tools.

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Introducing Nordik: The handbags made from Salmon leather

  • News
  • August 18, 2017
  • Courtney Devereux
Introducing Nordik: The handbags made from Salmon leather

Salmon leather is not a material that first comes to mind when you think of luxurious Italian made handbags. But designer Lilja Viggosdottir has released her first collection of salmon leather bags, Nordik, showcasing its undeniable style, durability and function.

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Nielsen: Kiwis prefer optimism and local brands

  • News
  • August 17, 2017
Nielsen: Kiwis prefer optimism and local brands

Marketing teams are constantly striving to engage with their audience through brand reputation, but according to Nielsen, Kiwis are more relaxed and optimistic than our peers, so how should that factor into how you project your brand?

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Tell us what you want from the 2017 general election

Ahead of the 2017 general election, The Register and NZ Retail magazine wants to know which election issues retailers care about the most.

 
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