Godfreys pleading guilty to 10 charges under Fair Trading
New Zealand Vacuum Cleaner Co has pleaded guilty to 10 charges under the Fair Trading Act in New Zealand for failure to disclose customer rights within extended warranty agreements.
Five of the charges relate to the retailer’s failure to provide written advice to customers of their rights under the Consumer Guarantees Act and the right of customers to cancel extended warranties within five days.
The charges relate to more than 3000 extended warranty agreements Godfreys sold to customers between June 17, 2014, and September 22, 2015, according to a report by Inside Retail.
Godfreys has since apologised for the breaches.
“We apologise to our customers who purchased extended warranties during this period and who may have been impacted by the inadequate disclosure of the key terms of those warranties,” said Chris Mason, general manager of Godfreys New Zealand.
“To date the majority of customers who were impacted have been contacted,” he said, in a report by Inside Retail.
“We have fully co-operated with the New Zealand Commerce Commission in its enquiries and have taken decisive action to ensure our policies and procedures align with the changes to consumer law introduced in 2014.”
Mason also said the brand has engaged with Retail New Zealand to implement a full review of their policies and procedures to ensure compliance.
“Godfreys has a long history in New Zealand and we are committed to transparency and doing the right thing by our customers,” he said.
NZ Vacuum Cleaner Co, owned by Australian Vacuum Cleaner Co, operates the Godfreys chain in Australia, with 31 stores in New Zealand.