Walond Limited, widely recognised as Look Sharp, has been fined $292,500 due to “frequent and widespread pricing errors,” where certain products were priced up to 33% higher than their advertised rates.
The discount chain has pleaded guilty in Auckland District Court to making misleading claims regarding product prices and consumers’ rights under the Consumer Guarantees Act, violating the Fair Trading Act.
According to the Commerce Commission, the chain has made efforts to improve compliance; however, the pricing issues persisted for an extended period.
“Look Sharp had frequent and widespread pricing errors over a substantial period of time, some of which meant customers paid as much as 33% more for a product than the advertised shelf price,” ComCom general manager of competition, fair trading, and credit Vanessa Horne said.
“Incorrect pricing was so widespread by late 2022 that Look Sharp started to display signs in a number of stores that stated there may be discrepancies between label prices and actual prices.”
Horne strongly encourages businesses to ensure accurate pricing of their products, as incorrect pricing can have financial repercussions and “can lead to consumers feeling pressured at the checkout, which can cause stress, frustration, and loss of confidence.”
Consumers’ Rights to Refunds and Exchanges
Look Sharp also made several misleading representations regarding customers’ rights to refunds and exchanges for faulty products between 2021 and 2023. These misrepresentations included limiting the return period for faulty products to just seven days and prohibiting refunds and exchanges for certain product categories.
Additionally, Look Sharp falsely claimed that Covid-19 restrictions prevented all returns and exchanges.
All of these directly contradicted the Consumer Guarantees Act, which mandates that all goods must be of acceptable quality and provides consumers with the right to seek remedies if a product fails.
“Look Sharp is a large trader, with 20 different stores and a revenue of up to $44 million a year. These breaches ultimately originated in Look Sharp’s head office and reflected a major gap in processes,” Horne stated.
While Horne expressed satisfaction that Look Sharp has taken steps to enhance its compliance systems, she voiced disappointment that these measures were not initiated prior to the Commission’s intervention, despite receiving consumer complaints.