Furniture store fined for misleading sale ads

A furniture store has been fined $28,000 after admitting providing misleading information about the savings to be made on sale goods.

Redpaths Furniture, with stores in Auckland and Hamilton, pleaded guilty in Manukau District Court to 28 charges of breaching the Fair Trading Act.

It was fined $28,000 and ordered to pay court costs of $3640.

The court was told that in the first six months of last year Redpaths promoted sales on furniture, such as lounge suites and beds, through flyers and newspaper advertising.

During that time, four products were found to be unavailable at the advertised "regular" price.

"Many businesses promote sales by indicating a price that the goods normally cost, compared with the sale price," said Adrian Sparrow, fair trading director at the Commerce Commission, which investigated the case.

"Redpaths misrepresented the 'regular' price of their furniture which made the advertised savings for the consumer appear larger than they really were."

Mr Sparrow said it was important that businesses understood their obligations under the law and ensured that all their business activities, including advertising, complied.

- NZPA