News

  • Australia - Jetstar and Virgin to pay penalties for misleading ‘drip pricing’ practices

    08 March 2017
    The Federal Court has ordered Jetstar Airways Pty Ltd (Jetstar) to pay a $545,000 penalty and Virgin Australia Airlines Pty Ltd (Virgin) to pay a $200,000 penalty for breaches of the Australian Consumer Law. In November 2015, Jetstar was found to have made false or misleading representations about specific advertised airfares on its website in 2013 and its mobile site in 2014. Virgin was found to have made false or misleading representations about specific advertised airfares on its mobile site in 2014.
  • New Zealand - First jail sentence in (NZ) Commerce Commission case

    03 March 2017
    Vikram Mehta, owner of mobile trader Flexi Buy Limited (Flexi Buy), has today been sentenced in the Auckland District Court to two years imprisonment after taking money from customers without intending to supply goods as promised. It is the first jail sentence handed down in a prosecution initiated by the Commerce Commission. Flexi Buy told customers that their goods would be supplied once they had made a set number of payments, when it knew they would not be. Between late 2012 and early 2014 Flexi Buy entered into over 300 consumer credit contracts, but only nine customers received their goods.
  • Australia - ACCC issues public warning notice about Danish online retailer LuxStyle

    02 March 2017
    The Australian Competition and Consumer Commission has issued a Public Warning Notice about the alleged conduct of online retailer Lux International Sales ApS (a company based in Denmark that trades under the name LuxStyle). The ACCC has received 127 complaints about LuxStyle since January 2017.
  • United Kingdom - CMA secures better deal for cloud storage users

    17 February 2017
    Amazon, Apple and Microsoft have committed to providing cloud storage users with fairer contracts, following action by the CMA.
  • New Zealand - Bike Barn fined $800k for misleading pricing

    12 February 2017
    Bike Retail Group Limited and Bikes International Limited, the joint operators of Bike Barn in New Zealand, have been fined $800,000 in the Auckland District Court. The two firms pleaded guilty to a combined 18 representative charges brought by the Commerce Commission under the Fair Trading Act regarding marketing and sales conduct between 1 July 2013 and 30 June 2015. Bike Barn used exaggerated discounting strategies that gave the impression to customers that they were purchasing bikes at significant mark-downs from the normal retail price – typically 50% off. It also advertised clearance specials that created an impression that the discounts were available for a limited time only.
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