Household goods firm Tech Vault Enterprises Ltd, trading as HouseSmile, copped a $60,000 fine for unconscionable conduct after repeatedly making unsolicited sales to an elderly woman with dementia.
The company was also ordered to pay $7,500 in compensation for emotional harm.
The company lured prospective customers via Facebook ads or its website, then had sales agents call them—plus making unsolicited calls to people on its database.
Commerce Commission Deputy Chair Anne Callinan noted that the victim’s daughter had contacted the company directly. She warned them her mother was elderly, living with dementia, and unable to use a computer.
Despite agreeing not to contact her again, the company kept calling the elderly woman for over 18 months—pushing new sales or reviving cancelled ones for items like tablets, phones, and Bluetooth speakers.
Callinan said the company’s awareness of the woman’s vulnerabilities—coupled with its frequent continued contact—was “highly aggravating.”
“During these phone calls, HouseSmile’s sales agents repeatedly engaged in conduct that was unconscionable by putting unfair pressure on the victim and trying to influence her decisions,” Callinan said.
This included telling the victim she was a “really good customer” who had paid the company “really well in the past.” She added this was untrue, as all prior orders had been cancelled.
“The company also offered inducements such as free gifts or special deals, including a $200 offer or free credit,” Callinan added.
“In addition to this, HouseSmile’s sales staff ignored signs the victim was cognitively impaired, such as an inability to recall information like bank details.”
She said the sales agents’ exploitation of the elderly woman “with a serious cognitive condition” was “disturbing and clearly wrong at many levels.”
“This sort of conduct is completely unacceptable,” Callinan explained. “Businesses that employ such tactics should expect to be on the receiving end of enforcement action.”
The fine would have been much higher but was reduced due to the company’s finances—HouseSmile entered liquidation just a week before sentencing.