A New Zealand bathroom and kitchen supplier has taken umbrage with the Commerce Commission after it said the company falsely advertised all its wares as Italian-made.
Earlier this month, the commission said in a statement Spazio Casa Limited had breached the Fair Trading Act, between late 2007 and April 2010, by making false and misleading claims on its website and brochures about the origin of its products.
It said Spazio Casa gave consumers the impression all its products were made in Italy, even though 60 percent of its products were manufactured in China.
However, Spazio Casa today said it had never implied its products were only made in Italy.
It said two new Spazio Casa employees, out of about forty staff nationwide, had been mistaken about the origin of some products and incorrectly said they were Italian-made.
Spazio Casa said the commission's media statement implied the company intentionally misled its customers even though both parties had agreed it was an unintentional breach of the Act.
It was also incorrect that 60 percent of the entire Spazio Casa product rage was made in China, it said.
About 70 percent of Spazio Casa's products were genuine Italian-made products and 30 percent of products manufactured in other countries, including China, Spazio Casa said.
The company said it was not fined or prosecuted by the Commerce Commission, as the mistakes were unintentional.
The commission said in its statement Spazio Casa co-operated with its investigation and would compensate any customer who had suffered a loss.
The commission said it was important businesses exercised care when advertising their products and considered how consumers were likely to interpret and perceive that advertising.
In the settlement agreement with the commission, Spazio Casa admitted breaching the Act and agreed to display a notice in each of its stores advising customers of its breaches of the Act.
Spazio Casa is a New Zealand-registered company with its head office, distribution centre and showroom in Auckland. It has eight franchised retail outlets throughout New Zealand.
Companies found guilty of breaching provisions of the Fair Trading Act can be fined up to $200,000 and individuals up to $60,000.
Bathroom, kitchen supplier rejects Commerce Com release
AdvertisementAdvertise with NZME.