1492210934675 - Budget Warehouse ‘truck shop’ pleads guilty to misleading customers

Budget Warehouse ‘truck shop’ pleads guilty to misleading customers

Door-to-door sales business Budget Warehouse has pleaded guilty to 18 charges of misleading customers in Auckland and Hamilton regions.

The Manukau-based truck shop is the 12th mobile trader prosecuted so far by the Commerce Commission since its year-long investigation into mobile traders, which revealed wide-spread non-compliance issues in the industry.

The mobile business sold consumer goods including household furniture, often on credit, and at significantly higher prices than mainstream retailers.

The company failed to disclose the required information in its contract documents, including its full contact details and an accurate statement of the customer’s right to cancel.

READ MORE: * Best Buy ‘truck shop’ pleads guilty to misleading customers * Budget adviser says more work needed to crack down on truck shops

Many contracts also failed to accurately disclose payment details.

Budget Warehouse’s contract documents also misled customers about delivery guarantees and liability for loss or damages caused by the products sold. Budget Warehouse would be sentenced later this year.

The commission said in a 2015 report mobile traders – often referred to as truck shops – had become more prominent in the compliants it received.

The District Court imposed fines of almost $510,000 on five mobile traders sentenced in 2016. 

Eleven mobile traders were prosecuted in 2016, including Best Buy, Bestdeals 4 You, Ace Marketing, Smart Shop, Goodring Company, Betterlife Corporation, Flexi Buy, Macful International, Zee Shop, and Sales Concepts, and one company that was yet to be named.

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