Bike Barn charged with misleading customers
12 September 2016
Bike Barn charged with misleading
customers over its sale prices
The Commerce Commission has filed 16 charges against Bikes International Limited and Bike Retail Group Limited (which both operate as Bike Barn) relating to misleading conduct.
These charges were filed in the Auckland District Court under the Fair Trading Act 1986. They relate to alleged misrepresentations which were made during 25 marketing campaigns by Bike Barn between July 2013 and June 2015.
In particular, the Commission alleges
that Bike Barn’s marketing campaigns were likely to
mislead consumers about:
The savings customers would make
on the purchase of bikes. For example, bikes were advertised
as “half price” when in fact they were usually sold at
that price.
There being a limited opportunity to get bikes
at particular prices. For example Bike Barn advertised a
“clearance” sale, when in fact the bikes were available
at the “clearance” price before and after the clearance
sale.
Bike Barn has co-operated with the Commission’s
investigation and has indicated that it intends to plead
guilty to the charges. As this matter is before the Court,
the Commission cannot comment further at this
time.
ends