In some cases, the staff member concerned had not even used the product in question, but still gave it a positive review.
Evidence also indicated The TV Shop requested employees to ask friends and family to leave reviews.
Judge Belinda Sellars, KC, said the relevance of several staff reviews, identified by the Commerce Commission during the case, was “to demonstrate that the posting of undisclosed staff reviews was not an anomaly but the result of a concerted effort by Brand Developers Limited (BDL)”.
Judge Sellars also accepted an expert witness’ opinion that BDL’s review omission systematically lowered the availability of negative information about its products to consumers.
The company also methodically removed some low-rating reviews on its own website.
When customers posted a one-, two- or three-star rating, their review was not published unless they responded to a follow-up email from the company.
The court also found the company systematically denied customers their rights under the Consumer Guarantees Act if something went wrong with a product they had purchased.
Policies and instructions were used by staff to suggest to consumers that they did not have any other rights to refunds or remedies outside the company’s “30-day Money Back Guarantee scheme” or “risk-free trial”.
Yet, those customers may have had rights and remedies, such as when a product was defective.
The TV Shop also made misleading representations about extra items that came with purchases.
In one instance, the company’s popular Air Roaster Pro falsely described a paid accessory pack as “free”, a “bonus item”, or a “special offer”, despite always requiring an additional payment.
Commerce Commission deputy chairwoman Anne Callinan said the law was clear that businesses must not mislead customers through reviews that are not what they seem.
“When people are looking to buy a product, they will often read online reviews to help them make an informed decision. Consumers should be able to trust that the reviews posted are genuine,” Callinan said.
“They should also be able to trust that genuine customer reviews are not excluded in order to positively skew product ratings.”
The matter will now progress to a penalty hearing.
It’s not the first time the Commerce Commission has successfully prosecuted The TV Shop.
In 2015, the business was fined $153,000 for misrepresentations that a ladder being sold or advertised had a certification when it did not.
And in 2022, The TV Shop was fined $123,500 after failing to comply with extended warranty disclosure requirements.
The TV Shop has been approached for comment.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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