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hard news
“Lowest price” marketing case dismissed
LAST MONTH, THE Commerce Commission’s case against Bunnings in New Zealand alleging “misleading representations that it offered the lowest prices in the market” was dismissed by the Auckland District Court, having concluded that the Commission had failed to prove the charges beyond reasonable doubt
The Commission alleged that, during 2014-2016 Bunnings’ “lowest prices” style advertising “gave an overall impression that it offered the lowest prices for its products, with only rare exceptions, when the Commission considered this was not true.”
Despite having the case dismissed, Commerce Commission Chair Anna Rawlings says the judgement “provides some important clarification of the law relating to the use of broad marketing statements that include concepts such as ‘lowest’ prices.”
In its Lexology blog, law firm Russell McVeagh adds: “This case is a helpful reminder to businesses that they need to be careful with superlative representations such as ‘lowest prices’, but these can be made.
“As always, the key is what consumers, using their common sense, will take from the representations, and this is not always the same view as that of the Commission.
“However, it is evident from the judgment that significant costs and resources are required to defend any such prosecution.”
Full details are available on ComCom’s website:
https://bit.ly/3oNCklo
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OCTOBER 2021 | NZHJ 7