KEY POINTS:
A company which tried to switch Made in China labels on 2006 Commonwealth Games uniforms to make it look as if they were manufactured in New Zealand today received a hefty fine.
Sports Resources pleaded guilty in Auckland District Court to two charges of breaching the Fair Trading
Act.
It admitted making the uniforms in China and then trying to cut off labels and stitch on Made in New Zealand labels.
One of the company's co-directors Anthony Grant Botica was convicted and discharged on a similar offence.
Judge Elizabeth Aitken said it was important that consumer confidence on branding and labelling, in particular on New Zealand made goods, was upheld.
She fined the company $23,750.
Sports Resources, which regularly makes rugby jersey replicas for adidas, had contracted through adidas to make the Commonwealth Games uniforms for the New Zealand Olympic Committee (NZOC).
Judge Aitken said the decision to change the labels came after a misinterpretation of the original contract between the company, the NZOC and adidas, which left the company having to shoulder the costs.
"Faced with escalating costs Mr Botica decided to have the goods made in China to reduce costs," Judge Aitken said.
She was satisfied while Mr Botica's actions were deliberate, he did not set out to mislead from the outset.
When the company was advised by the Commerce Commission of the investigation they did not in anyway seek to hamper to cover what they had been doing.
Eight of the 12 Commonwealth Games garments had been affected, ranging from polar fleeces to singlets.
Botica's actions had been in part caused by the ever-changing and increasing requirements of the NZOC, she said.
Botica had gone into the contract intending to make the goods in New Zealand but increased costs meant he looked to China to provide the uniforms.
Outside the court an emotional Botica told media it had been a stressful 18 months and he was remorseful for the incident.
He had not planned to switch labels and was not out to make a "quick buck", he said.
Botica said he had dug the company into a hole and had just been trying to get out of it. "I didn't think I was a criminal."
Commerce Commission manager Graham Gill said outside the court he was pleased with the outcome.
Botica had made a dishonest and deliberate decision, not entirely of his making, Mr Gill said.
But many other businessmen found themselves in similar situations and had not resorted to such measures, he said.
"Businesses should not mislead consumers," he said.
- NZPA