Cash-back offer catches Repco out

Australasian auto parts retailer Repco has been convicted and fined $5000 in the Auckland District Court for breaching the Fair Trading Act in relation to a cash-back offer on Predicate battery chargers.

In June, automotive accessory distributor Engrave was convicted and fined $1000 in relation to the same offer. Both companies pleaded guilty to the breaches of the act in two separate cases.

The Commerce Commission said it laid charges after an investigation into allegations of a misleading "$5 manufacturer's cash back" offer on the battery chargers, promoted through Repco and other retail outlets.

The commission said conditions of the offer, which were not clearly displayed, made it "far less attractive than customers were led to believe".

Although Repco did not design the promotion, by passing on the offer to customers, it was liable.

- NZPA