Service station fined 35k for misleading prices

Challenge Service Station Milford was found guilty of breaching the Fair Trading Act by misleading customers.

A North Shore petrol station was fined $35,000 in Auckland District Court today for misleading customers about its petrol prices.

Challenge Service Station Milford charged two cents a litre more than its advertised petrol price for 91 and 95 octane petrol from August 1 last year to February 26.

It was found guilty of breaching the Fair Trading Act by misleading customers .

Challenge Milford said the extra charge was for the "full service", including checking oil and water, and there were signs in store informing customers of this.

The Commerce Commission said the signs were obscured from customer's view and the "full service" was not always offered.

Commerce Commission Chair Paula Rebstock said people often choose where to buy petrol based on forecourt prices and there was no way for customers to check the amount charged per litre.

"To display one price and charge another harms both the consumers who have paid more than they expected and competitors who have missed out on potential business."

Judge Anne Kiernan said the defendant had obtained a "large amount of profit" from the extra charges.

Challenge Milford is an independently owned and operated service station.

- NZPA