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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Retailer Ingrid Starnes shares a few of her favourite things

  • Design
  • April 26, 2017
  • Elly Strang
Retailer Ingrid Starnes shares a few of her favourite things

The Register's sister site Idealog is in the middle of celebrating Design Month. It's picked the brains of some of the most interesting individuals in the industry to find out their favourite design-related things, their not-so-secretive side hustles and what inspires them creatively. Here's fashion designer Ingrid Starnes.

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Air New Zealand’s reputation has no weak spots

  • News
  • April 26, 2017
  • Sarah Dunn
Air New Zealand’s reputation has no weak spots

The latest NZ Corporate Reputation Index has ranked our national carrier New Zealand’s most reputable company, with Toyota again coming in runner-up. This is the fourth year running that the two organisations have been in the top two.

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From farm girl to the bright lights of retail

  • In association with Affin Group
  • April 26, 2017
  • Affin Group
From farm girl to the bright lights of retail

Retail specialists Affin Group would like to introduce their new portfolio manager, Cecile Hayman. Hayman looks forward to serving the retail community in a job she believes is the best in the world – here’s why.

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Made in China, designed in New Zealand

  • Opinion
  • April 24, 2017
Made in China, designed in New Zealand

The recent release of the 2017 Ethical Fashion Report by Baptist World Aid Australia and Tearfund has got Kiwi designer and retailer Annah Stretton thinking about the challenges those in New Zealand's fashion industry now face.

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New rules for children’s nightwear fire-hazard labels

  • News
  • April 24, 2017
  • Sarah Dunn
New rules for children’s nightwear fire-hazard labels

If you’re selling children’s clothing, you’d better check the fire-hazard labels – the rules are changing, and they could be out of date by April 18. From that date onwards, it will be illegal to sell product carrying old fire-hazard labels.

Read more
 
 
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