The Commerce Commission is taking high court action against door-to-door electronics retailer Ace Marketing for signing up over 4000 customers to misleading contracts.
The Hamilton based company sold consumer goods via contract, though customers didn’t receive products until a specified number of payments had been made.
While the contracts used in these sales did state this would be the case, the commission argues the terms were unfair, and created a significant imbalance in the parties’ rights.
“The Commission’s case is that… Ace breached the lender responsibility principles under the [credit contracts and consumer finance] act by failing to assist borrows to reach an informed decision because the clauses that set out the delay in delivery when payments were missed were not plainly expressed, were likely to be misleading, deceptive or confusing, and were oppressive,” The Commission wrote.
The court action seeks to prevent Ace from providing consumer credit until its contracts are amended to comply with the CCCF Act, a declaration that Ace breached the fair trade act, and refunds for customers where applicable.
This isn’t the first case the commission has brought against the door-to-door retailer, with Ace previously ordered to pay $150,000 after failing to disclose and charging unreasonable credit fees in 2016.
At the time, Ace faced 19 charges under the fair trade act for misleading borrowers.