A company that pulled the wool over the eyes of duvet buyers by selling "alpaca" products that were actually made of sheep fibre has been hit with a fine of more than $71,000.

Rotorua business Budge and owner Sun Dong Kim were convicted and handed the fine in the Auckland District Court this week after pleading guilty to four charges of misrepresenting their product.

The packaging on the products - imported from China - said the duvets were largely made up of pure alpaca wool - but tests by the Commerce Commission found they had less than 4 per cent.

The company then sold the "alpaca" duvets to two tourism shops in Auckland at nearly double the price they charged for wool.


In sentencing the company, Judge Rob Ronayne described the offending as a breach of the trust between consumers and businesses.

Commerce Commissioner Anna Rawlings said the kind of offending risked hurting New Zealand's tourism reputation.

In May this year, Nangong Limited was hit with a $109,000 fine after admitting to making false claims about "alpaca" products.