Home Direct Welcomes Commerce Commission Report on Mobile Traders
Having worked closely with the Commerce Commission in the last few years, Home Direct welcomes the release of the Mobile
Trader investigation but we are concerned that it seems that we were the only company out of 32 reviewed that had
complied with the obligations of the law and did not receive a compliance notice, said Chief Executive Michael Wright
“Home Direct has been operating legally and ethically in New Zealand for over 40 years and our loyal customer base is
testament to the value proposition we offer’ he said.
It is of concern however, he noted, ‘that cowboys exist in this industry and that their tactics sometime give the
industry a bad name’.
“As the largest player, with over 70 mobile shops and coverage across NZ”, Home Direct is acutely aware of the need to
abide by the law. We are a long-standing member of the Direct Selling Association (DSA) an organisation that sets the
standard for responsible retailing practices. As the only member operating mobile stores, our adherence to the DSA Code
of Practice means that our standards of retailing are unmatched by any other operator in the country.
Along with the DSA, Home Direct is also a member of the Financial Services Federation and the New Zealand Credit & Finance Institute Inc.; two organisations that help set the benchmark of best practice in this country. Home Direct has
worked alongside these organisation in preparing submissions and input into government legislation around responsible
In general we found the Commission report fair, balanced and accurate, Mr Wright said. We appreciate that they
acknowledged the reasons why customers enjoy the mobile truck experience which is based around the convenience of home
shopping. This is especially important for those who, to quote the Commission, ‘feel unable to purchase the same goods
in mainstream retails outlets’.
The only criticism of the report relates to the price comparison. Over 50% of our sales are clothing and bedding where
we offer comparable price quality and brands to chain stores. The items used in the comparison chart by the Commission
ignored these products. Home Direct, as a medium sized NZ retailer can never match the purchasing power of the
predominately Australian owned retailers in whiteware and electronics. We do note however that the Pricespy comparisons
are web prices and are exclusive of delivery costs, Mr Wright noted.
Home Direct applauds the on-going compliance activity the Commerce Commission has promised and encourages them to take
all possible legal steps to clean up this industry and give more assurance to the customers who enjoy this form of
shopping, Mr Wright said.