Computer retailer fined for fair trading breach

Computer retailer Gateway has been fined more than $21,000 for breaching the Fair Trading Act through false advertising.

Gateway New Zealand Ltd pleaded guilty in Auckland District Court for misleading potential customers through newspaper and online advertisements for the sale of second-hand computers, Commerce Commission acting chairwoman Paula Rebstock said.

In February, the ads ran for the sale of ex-demonstration and re-manufactured computers for "$999* and that's just for starters". The wording was accompanied by a picture of a monitor, keyboard and mouse.

However, the monitor was not included in the package for $999.

Judge William Unwin accepted the ads were a mistake, and not intentional, but fined Gateway $21,450 for the breach.

Gateway's New Zealand operation went into liquidation in October. Today's decision follows a similar fine in November last year when the company breached the act for describing compulsory additional costs in small print only in advertisements.

It was then fined $21,500.

Ms Rebstock said today's fine was a reminder to traders to advertise fairly.

"When images are used to promote a product or deal, they must accurately represent what the trader is offering. Consumers are entitled to assume what they see or read in advertising is accurate," she said in a statement.

- NZPA