Commission concludes Intagr8 investigation

Commission concludes Intagr8 investigation

The Commerce Commission has concluded its investigation into telecommunications firm Intagr8 Limited regarding allegations it misrepresented the price and nature of its services when making sales in New Zealand.

Intagr8 offered bundled telephone services and office equipment to small and medium-sized business customers. The equipment, including telephone systems, CCTV monitoring and security systems, printers and photocopiers, was financed through third party finance companies that entered into a 60-month rental agreement with customers.

Intagr8 was placed into liquidation in December 2015 owing creditors in excess of an estimated $4 million. The company’s sole director and shareholder, Murray Taylor, immediately left New Zealand for Australia and has not returned.

The Commission’s investigation focused on 29 complaints received between 14 April 2014 and 6 October 2015. Complainants alleged that Intagr8 salespeople misrepresented the price of the equipment they signed up for and the services they would receive. They also alleged they were not informed they were entering into a rental agreement with a finance company, paying by direct debit, and that separate accounts would be issued for the telephone services and equipment rental.

The Commission has concluded there is sufficient evidence to establish that Intagr8 likely breached the Fair Trading Act. However, it will not file court proceedings as any penalty imposed by the Court would either remain unpaid or be at the expense of creditors. A formal warning will instead be issued against Intagr8’s record.

The Commission also assessed individual liability and has sent formal warnings to Mr Taylor and Intagr8’s former National Sales Manager Stephen Morrissey. Mr Morrissey resigned from Intagr8 in March 2015.

A copy of the Commission’s investigation report detailing this case can be found online.

ends

© Scoop Media