Vacuum cleaner and cleaning product retailer Godfreys has pleaded guilty to 10 charges in relation to extended warranty agreements it sold to consumers.
Between June 17, 2014 and September 22, 2015, 3202 customers were sold extended warranties by the company at an additional cost to the product they were purchasing.
At the time of purchase Godfreys failed to give written or verbal advice to customers about their rights around the extended warranty agreement.
Under the Fair Trading Act 1986 (FTA) customers should have been told about their option to cancel the extended warranty within five days of buying it.
Five of the charges, brought by the Commerce Commission, relate to Godfreys failure to give written advice to customers around the extended warranties.
The other five charges stem from the company's failure to give customers verbal advice over the same period.
This is the first prosecution which focuses on the new FTA provisions which give businesses specific obligations when it comes to the sale of extended warranty agreements.
Godfreys trades under New Zealand Vacuum Cleaner Company Limited.