Chrisco needs to be investigated: rival

A "serious balls-up" by Christmas hamper company Chrisco needs to be investigated by the Government, a rival hamper company says.

Hampsta New Zealand Ltd has asked the Ministry of Consumer Affairs to investigate after Chrisco Hampers claimed money deposited by their customers went to an AAA rated bank.

The money however, was deposited in a bank with a AA rating -- a less secure rating.

Consumer Institute chief executive Sue Chetwin said that action breached the Fair Trading Act.

"They are misleading customers."

A Commerce Commission spokeswoman confirmed today that the commission had an open investigation into Chrisco under the Fair Trading Act.

Chrisco said in a statement today it had understood the bank it had deposited funds in was AAA, but had now been advised it was AA.

"Chrisco apologises if this inadvertent error has caused concern to any of its customers and will ensure any material is changed to reflect this," the statement said.

But Hampsta general manager Gary Alway said Chrisco had claimed the AAA rating for the last 16 years.

"Now that someone has raised it, because it's a serious offence, they just want to say sorry?

"What about the 50,000 people that have got money with them and potentially gave them money on that basis?"

Mr Alway said his firm would continue to push the ministry to investigate the company.

He previously raised the issue with Chrisco and yesterday made a complaint to the ministry and government ministers.

"It's a serious balls-up," he said.

"The New Zealand public need to have confidence in statements made by companies about their money and it would seem Chrisco has stepped well over the line saying that their bank ... is AAA rated when in fact it is not - Raboplus bank is New Zealand's only AAA rated bank."

The commission spokeswoman said the issue relating to statements made about AAA rated banks formed part of the investigation in Chrisco. It was commission policy not to comment further on open investigations.

"It is important to note that anyone can take action under the Fair Trading Act and that only the courts can decide if the Act has been breached and set appropriate penalties," she said.

- NZPA