Consumer watch dog warns e-commerce phone store about price discount claims

The Commerce Commission says Buy Mobile has breached consumer law. Photo / Screenshot

Online phone retailer Buy Mobile has received a warning from the Commerce Commission over "unsubstantiated" claims made about its discount prices.

The consumer watchdog believes the e-commerce store, run by Amaysim Operations, has breached the Fair Trading Act as it could not provide evidence on its advertised dollar savings when requested to do so by the commission.

Buy Mobile advertised a $930 discount on a Samsung Galaxy 5 selling for $339.90 on its website and said it relied on publicly available information about competitor's prices to make the claims.

It could not provide necessary evidence of fair discounts claims.

Commissioner Anna Rawlings said price comparisons provided consumers with useful buying information but needed to fall inline with consumer law.

"At the time a claim is made traders should be able to explain the basis for it and show where they got the information from. When selling products like mobile phones where prices can change quite quickly, traders should have a system in place to ensure that any advertised discounts remain accurate and comparisons with other retailers are current," Rawlings said.

"It is unfair to consumers who rely on pricing claims and to other businesses offering genuine savings, if price savings are exaggerated, or comparative information is not from a credible and current source."

Buy mobile has since stopped making price comparisons on its website and products are now on sale with a purchase price only.

The Herald has contacted Buy Mobile for comment.

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