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New Zealand issues warning to Hong Kong based electronics retailer

Christian Fernsby |
Online electronics retailer BXT International Limited and its related companies (together known as Becextech) have been warned by the Commerce Commission for conduct that the Commission considers has likely breached the Fair Trading Act.

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Topics: NEW ZEALAND    HONG KONG   

The warning follows a Commission investigation into the Hong Kong based company which sells electronic goods such as mobile phones, computers, tablets, and digital cameras through its website.

In the Commission’s view, Becextech has likely breached the Fair Trading Act by:

- failing to clearly disclose that some mobile phones it was selling were refurbished, thereby misleading consumers into believing that they were buying new mobile phones at discounted prices
- selling extended warranties that did not contain the mandatory information required to be disclosed to consumers by the Fair Trading Act
- making unsubstantiated and false or misleading representations about the price of goods by representing certain goods as being available at discounted prices and ‘on-sale’ without having reasonable grounds to support the level of discount claimed.

Becextech also made special ‘on sale’ price claims, that in the Commission’s view, could not be backed up and were misleading. By law, businesses must have reasonable grounds for making a pricing claim at the time it is made.

As a result of the Commission’s investigation, Becextech has agreed to make changes to its practices including:

- adding “refurbished” as the first word in relevant product descriptions
- stopping the sale of extended warranties
- altering pricing practices to ensure that any discount claims made refer to a price recently charged by the company, as well as being able to be substantiated.


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