No Commerce Commission action over Harvey Norman sales glitch

Photo / Steven McNicholl

The Commerce Commission has decided not to take action against Harvey Norman over the botched sale last month on cheap furniture.

The glitch occurred during Harvey Norman's "New Zealand's Biggest Retail Sale".

Some furniture, including lounge suites, were mistakenly advertised online for less than $100. Nearly 330 people snapped up the deals but were later told by email that the prices were the result of a "genuine error".

Harvey Norman said it would give customers a $100 voucher and a refund, but not honour the sales.

In a decision to complaints from shoppers the commission said it was not taking any enforcement action against the retailer because:

• The display of incorrect prices was a one-off, short term event that is unlikely to be repeated.

• The company did not financially gain from the conduct, nor did it cause harm to its competitors.

And although consumers could not buy the products at the prices advertised, and may have been inconvenienced, the commission said there was unlikely to have been any direct financial loss to consumers.

The commission said it will be asking Harvey Norman to ensure it has taken effective steps to avoid any future advertising of incorrect sale prices.

Complaints were also made to Consumer NZ.

Consumer boss Sue Chetwin blasted the retail giant for its poor response to customers.

Ms Chetwin said the company should do more.

"Our view is that people have more rights than just getting a $100 voucher."