The TV Shop has been caught misleading customers by having its employees write fake reviews about its products.

The company is behind well-known brands like Thin Lizzy and Transforma Ladder, whose products are marketed on television infomercials.

The District Court has convicted the business of 13 charges for breaches of the Fair Trading Act over a period of nearly four years.

In the judgment, the court found that The TV Shop misled customers about the popularity and quality of its goods when staff members posted reviews on various platforms about products without disclosing their affiliation to the business.

In some cases, the staff had not even used the product but gave it a positive review. The evidence also indicated that the company requested employees to ask friends and family to leave reviews.

In addition, the company often removed low-rated reviews on its own website. 

“The law is very clear – businesses must not mislead consumers through reviews that are not what they seem,” said Commerce Commission deputy chair Anne Callinan.

“When people are looking to buy a product, they will often read online reviews to help them make an informed decision. Consumers should be able to trust that the reviews posted are genuine,” she added.

The court also found that The TV Shop misrepresented consumers’ rights to refunds or other remedies and made misleading claims about ‘free’ or ‘bonus items’.

Following the court’s judgment, a hearing will be held to determine the suitable penalties for the business.

The Commerce Commission began legal proceedings on the case in 2023. Prior to this, the regulator had successfully prosecuted The TV Shop twice for other breaches.

In 2022, the company was fined $123,500 after failing to comply with extended warranty disclosure requirements. In 2015, it was fined $153,000 for misrepresentations that a ladder being sold or advertised had a certification when it did not.