Commerce Commission stops mobile trader and secures refunds

Issued 22 December 2015
Release no. 78

Commerce Commission stops mobile trader and secures refunds for customers

The Commission has accepted an enforceable undertaking from mobile trader Sales Concepts Limited (Sales Concepts).

The Commission says it has evidence that Sales Concepts is likely to have breached the Fair Trading Act, including by promising pre-Christmas delivery of goods sold through its Christmas Deal.

As part of the undertaking, Sales Concepts has promised to stop a range of potentially unlawful selling practices. In addition, Sales Concepts is currently contacting customers who purchased the Christmas Deal to offer them the option of a full refund. Customers who cannot be contacted will receive a refund of all money paid to Sales Concepts.

Anyone who has agreed to purchase the Christmas Deal from Sales Concepts is encouraged to get in touch with the company if they have not yet been contacted.

The decision to accept enforceable undertakings comes part way through the Commission’s investigation into Sales Concepts and is designed to avoid further harm to consumers while the investigation continues. As the investigation is continuing, the Commission will be making no further comment at this stage.

A copy of the enforceable undertaking is available on the Commission's website.

Background

Sales Concepts Limited is an Auckland-based mobile trader which sells a range of electronic goods including phones, tablets and speakers.

The Christmas Deal promotion involved the sale of bundles of electronic goods for between $599 and $1,599, with customers paying for them by weekly instalments of between $20 and $50.

The Commission is aware of Sales Concepts making door-to-door sales in (at least) Auckland, Whangarei, Hamilton, Napier, Whanganui and Wellington.

Enforceable undertakings were introduced as part of the law changes in the Fair Trading Amendment Act 2013 and allow the Commission to apply to the court to enforce an undertaking if a trader is not abiding by its terms.

The changes also brought in much higher penalties for breaches of the Act.

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