The Commerce Commission is launching an investigation into clothing brand, World.
The investigation is a result of nine official complaints made to the commission following a Spinoff investigation.
The investigation revealed T-shirts manufactured in Bangladesh with embellishments made in Hong Kong, China were labelled "Fabrique en Nouvelle Zelande" - Made in New Zealand.
The Commerce Commission has made a preliminary assessment of the complaints and found reason to look further into the matter.
In the statement, Commissioner Anna Rawlings says "Any labelling must be clear and truthful."
In the instance of products designed and manufactured in at least two different countries, Ms Rawling says accurate labels are still a must.
For instance, labels could read, "Designed in NZ and manufactured in China," she said.
The Commission has also produced a video called 'If you can't back it up, don't say it' as a helpful guide for traders.