Fashion design house and retailer, World, has promised to remove labels from imported garments after the Commerce Commission determined they were likely to mislead customers about the country of origin, which is prohibited by the Fair Trading Act.
Labels reading “Fabrique en Nouvelle-Zeland”, which translates into “made in New Zealand”, were likely to have led consumers to think that the garments were manufactured in New Zealand when in fact they were manufactured in China or Bangladesh, according to the commission.
Although another label was stitched inside each garment with the correct country of manufacture, Commissioner Anna Rawlings pointed out that this tag may not have been noticed, or it could have confused customers due to the inconsistency.
World immediately amended the tags on its imported garments after the issue was raised. The Commission’s investigation has concluded, with World agreeing that it will:
- Not use any tag or labelling with the phrase “Fabrique en Nouvelle Zelande” on any imported garments.
- Implement compliance procedures to ensure any claims it makes about the origin of its products are accurate, able to be substantiated and are not capable of misleading consumers.
- Refund any customers who return the garments at issue to World and who bought them under the impression that they were made in New Zealand.
Commissioner Rawlings said that if businesses label their products with a country of origin, they need to make sure the label is clear and accurate. They should also check that other labelling, imagery and packaging is not likely to give consumers the impression that the product is made in New Zealand when it is not.
“New Zealand-made products can sometimes attract a price premium when compared with similar products made overseas and their purchase can represent an important ethical choice for some consumers,” she said.
“The truthfulness of information about country of origin is particularly important because consumers cannot check the accuracy of this kind of labelling for themselves,” she said.
