Commission takes on first unconscionable conduct cases

Commission Deputy Chair Anne Callinan says the practices allegedly constitute unconscionable conduct – that which is a substantial departure from the generally accepted or expected standards of business conduct in New Zealand.

“This is behaviour that we expect to see rarely, as it is a clear and obvious departure from what is expected from businesses acting in good commercial conscience,” Ms Callinan says.

“Simply put, the alleged conduct the Commission has uncovered here is some of the worst we have seen and involves the use of high-pressure sales tactics on customers who were vulnerable, including customers with cognitive impairments.”

As well as The TV Shop case, the Commission has also taken another unconscionable conduct case against Tech Vault Enterprises Ltd, trading as HouseSmile, with that matter set down for sentencing at Hamilton District Court on February 10.

Together, these are the first unconscionable conduct cases the Commission has taken since the prohibition was added to the Fair Trading Act.

“Both cases reinforce our commitment to acting firmly and decisively when we detect unconscionable conduct, which is an enforcement priority for the Commission,” Ms Callinan says.

The Commission alleges The TV Shop engaged in the exploitative and misleading business practices between August 2022 and June 2024. The tactics related to the sale of high-value TEBO/Bambillo-branded bed and chair products.

“As well as the use of unfair, high-pressure sales tactics, we allege The TV Shop sold the products on long-term payment plans when it was aware they were unaffordable and without doing things like checking the customer understood the terms and nature of the sale, including the terms of the ‘30 day  trial’,” Ms Callinan says.

“We argue the company would then employ aggressive post-sale retention and debt collection tactics.

“Some customers targeted by these tactics, which we say were carried out deliberately or recklessly, were suffering from serious illnesses, such as cancer, or symptoms of cognitive decline.”