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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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Stick to the facts when you’re selling

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  • June 25, 2018
  • The Register team
Stick to the facts when you’re selling

Retail is an industry with a lot of detail, and it can be tempting to lose track of the fine print when you’re focused on the day-to-day realities of running a business. However, misleading your customers on product, pricing or their rights; selling unsafe goods, or selling illegal goods can result in serious consequences.

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First Aid Pod aims to give privacy to those in need

  • News
  • June 20, 2018
  • Elly Strang
First Aid Pod aims to give privacy to those in need

If you’ve ever been involved in an emergency in a public space, you’ll know that privacy is often desired for both the person under duress and the first aid responder trying to help. Three Dunedin retail workers had seen it happen all too often, so they’ve created the First Aid Pod – a pop-up tent that provides shelter and all the medical gear necessary to deal with such a situation.

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