Tyre retail chain Beaurepaires has been fined $243,000 for deceptive and unfair conduct in the sale of the extended warranty Road Hazard Cover.
According to the Commerce Commission, Beaurepaires’ invoicing system automatically added the warranty to all tyre purchases and required customers to opt out if they did not want it. Customers were also reliant on employees to inform them about the additional product.
The lack of staff training resulted in customers being charged for Road Hazard Cover without their awareness or consent and without the necessary information given to them, said Commerce Commission deputy chair Anne Callinan.
“Taking payment for services when customers aren’t aware they’re buying or have not expressed interest in purchasing is unacceptable behaviour.
“We encourage all businesses to use an ‘opt-in’ sales approach. This allows consumers to make their own decisions and reduces the risk of breaching the Fair Trading Act,” Callinan continued.
She added retailers must provide specific information about their extended warranty to help consumers decide if it offers value over the rights already available under the Consumer Guarantees Act.
Beaurepaires is now trading as Advantage Tyre Solutions.
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