Mitre 10 fined over misleading advertising

Hardware chain Mitre 10 has been fined $13,500 for advertising garden equipment at special prices which at some outlets were no cheaper than the normal price.

The company admitted in the Auckland District Court three charges of breaching the Fair Trading Act relating to a sale catalogue sent to about one million households last year.

The catalogue contained coupons which customers could redeem for discounted prices.

But in 14 of the company's 122 stores, one or more of the catalogue items were sold for the same price, or cheaper.

The three items advertised with false price claims were a lawnmower advertised at $499, a line trimmer at $79, and hedge trimmers at $139.

Judge Cecilie Rushton said the company should not have relied on memorandums to its franchise holders advising of their obligations.