Door-to-door trader Bestdeals 4 You Limited has admitted 19 charges relating to the layby sales agreements and consumer credit contracts it offered customers.
The Commerce Commission filed the charges in the Auckland District Court this morning as it clamps down on non-compliance.
The charges relate to breaches of the Fair Trading Act 1986 and the Credit Contracts and Consumer Finance Act 2003 (CCCFA).
It is the ninth mobile trader, commonly referred to as a truck shop, to be prosecuted by the Commission this year.
The commission said Bestdeals operates its mobile trading business by selling door-to-door in Auckland, Whangarei and Hastings under the name Easylayby.
It also operates a physical store in South Auckland, using the name Super Mobile, which offers layby sales.
"Bestdeals failed to comply with the disclosure requirements for layby sale agreements under the [Fair Trading Act]."
In particular, the Commission said Bestdeals failed to provide its customers with a copy of the terms and conditions when they entered into a layby sales agreement.
It also breached the CCCFA by failing to disclose key information.
"Bestdeals did not give consumers an accurate statement of their right to cancel the contract, their right to apply for relief from unforeseen hardship, or the details of the number of payments they had to make. "
The Commerce Commission has prosecuted nine mobile traders this year, including Ace Marketing Limited, Smart Shop Limited, Goodring Company Limited, Betterlife Corporation Limited, Flexi Buy Limited, Macful International Limited, Zee Shop Limited and Sales Concepts Limited.
The District Court has imposed fines of almost $510,000 on the five mobile traders sentenced so far this year.
In August last year, the Commission published its mobile trader report after a year-long investigation into the industry. It found that 31 of the 32 mobile traders identified did not comply with all of their obligations under the FTA and CCCF Act.