A jeweler of Michael Hill fined $ 169,000 as a result of a Trade Commission investigation

Retailer Michael Hill New Zealand was fined $ 169,000 in Wellington District Court today as a result of a Trade Commission investigation.

The investigation focused on the fact that the jeweler had not complied with the extended warranty disclosure requirements of the Fair Trading Act.

Michael Hill admitted 12 counts that his Professional Care Plan (PCP) had not been respected between May 31, 2017 and May 30, 2018.

PCP includes various services designed to prolong life and maintain the appearance of the jewel.

The documentation provided to clients on the PCP did not allow to include all the required information on the cover page, including:

• Compare the protections that consumers automatically have under the Consumer Guarantee Act (CGA) with the protections offered by the PCP.

• An adequate summary of consumer rights and remedies under the CGA

• a summary of the consumer's right to cancel the PCP

The company also admitted to being accused of misleading consumers by adding the cost of the PCP to the price of a bracelet, without the Whangarei couple having bought it in June 2016.

Commissioner Anna Rawlings said New Zealand's law clearly defines the information that should be provided to consumers when selling an extended warranty.

"This information helps consumers decide if a warranty extension offers them value greater than the rights they already have under the CGA," she said.

"Then they can decide if they are worth it and the cost of the extended warranty should be clearly stated."

"When the required information is not provided, consumers who purchase these products may eventually cancel their contract and obtain a refund of the cost of the guarantee."

Judge DRW Barry stated that the conviction for conduct was a significant set of failings and not a minor oversight of Michael Hill.

"[It] challenges the objectives of the FTA, as consumers do not have an immediate perceptible comparison between their rights under the CGA and those covered by the PCP, "Barry said.

"The financial loss suffered by the couple [the consumers] was caused by the merger of the guarantee price with the price of the bracelet.

"Consumers have been" induced "to pay the proceeds of the guarantee."