The Commerce Commission has filed proceedings against The TV Shop over “exploitative and misleading practices”.

The commission alleges that the company engaged in tactics related to the sale of high-value Tebo/Bambillo-branded bed and chair products between August 2022 and June 2024. 

According to commission deputy chair Anne Callinan, the conduct involved the use of high-pressure sales tactics on customers who were vulnerable, including customers with cognitive impairments.

In addition, The TV Shop allegedly sold the products on long-term payment plans when it was aware they were unaffordable, and without doing things like checking if the customer understood the terms of the sale.

“We argue the company would then employ aggressive post-sale retention and debt collection tactics.

“Some customers targeted by these tactics, which we say were carried out deliberately or recklessly, were suffering from serious illnesses, such as cancer, or symptoms of cognitive decline,” Callinan said.

She added that the practices allegedly constitute unconscionable conduct, which is legally defined as business activity that is “a substantial departure from the generally accepted or expected standards of business conduct”.

Alongside The TV Shop, the commission has also taken another unconscionable conduct case against Tech Vault Enterprises, trading as HouseSmile, with that matter set down for sentencing on February 10.

Together, these are the first unconscionable conduct cases the regulator has taken since the prohibition was added to the Fair Trading Act.

If found guilty, businesses can be convicted and fined up to $600,000, and individuals can be liable for fines of up to $200,000. The courts can also order convicted businesses to compensate consumers or vary a contract.

Last year, The TV Shop was caught misleading customers by having its employees write fake reviews about its products. The Commerce Commission began legal proceedings on the case in 2023.