Home Shop fined $12,000 for fake brand clothing
30 June 2005
Home Shop Ltd, which sells clothing and linen door-to-door from trucks, has been convicted and fined $12,000 for selling counterfeit clothing to an Auckland student.
The company was prosecuted under the Fair Trading Act for selling counterfeit Nike, Diesel and Adidas clothing, including a fake Adidas All Black t-shirt with the words "Official Licensed Product" on the collar. Nike, Diesel and Adidas confirmed to the court that the items were low-quality fakes.
In his judgement, Justice S G Lockhart said the garments purchased - three polo shirts, a t-shirt and a pair of pants, - were "detailed imitations of the genuine garments." The price of the counterfeit clothing was similar to retail prices for the real thing.
"By selling fake goods, Home Shop was ripping off the customer, and the brand holder," said Commerce Commission Fair Trading Director Deborah Battell. "The goods weren't any cheaper than the real thing, and the customer was entitled to believe they were getting the quality brands they were paying for."
"Home Shop sells goods door-to-door, often on a credit basis with customers signing up to regular automatic payments to repay the amount of the purchase. Direct selling in this manner has become big business," said Ms Battell, and she urged customers to shop around and compare prices and quality before purchasing.
The Commission is also reminding direct selling operators who offer credit that they need to comply with their obligations under the Credit Contracts and Consumer Finance Act.