Commerce Commission takes on TV Shop business for allegedly misleading vulnerable customers

The Commerce Commission is taking on two unconscionable conduct cases. Photo / NZME

The TV Shop is being taken to court over allegedly exploiting and misleading vulnerable customers over the sale of high-value products.

The Commerce Commission has filed proceedings against Brand Developers Ltd, trading as The TV Shop, alleging the company engaged in high-pressure sales and aggressive debt collection tactics targeting customers suffering from serious health and cognitive issues.

Commission deputy chair Anne Callinan said practices allegedly constituted “unconscionable” conduct, with the company’s behaviour displayed a far stretch from what it expected from businesses acting in good faith.

If found guilty of unconscionable conduct, businesses can be convicted and fined up to $600,000 and individuals can be liable for fines of up to $200,000.

She said customers subjected to the allegedly exploitative tactics included those suffering from serious illnesses such as cancer or mental decline.

“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.”

The alleged practices related to the sale of high value TEBO/Bambillo-branded bed and chair products by The TV Shop, formerly Brand Developers Ltd, between August 2022 and June 2024.

The Commerce Commission said alongside the pressure tactics, the TV Shop sold products on long-term payment plans when it was aware they were unaffordable, and without checking to see if the customer fully understood the terms and conditions of sales which included 30-day trials.

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.