'Italian' flooring, bathroom supplier got most products from China

FOLLOW-UP: Italian bathroom, flooring maker disputes made-in-China settlement (paid)

NB: The Commerce Commission have altered their onsite description of SpazioCasa from "bathroom and kitchen supplier" to "bathroom and flooring supplier". NBR has changed its article accordingly.

A national bathroom and flooring supplier who overcharged and lied about product origin has been found in breach of the Fair Trading Act.

Spazio Casa has entered into a settlement with the Commerce Commission following multiple breaches between late 2007 and April 2010.

The company’s website and brochures gave consumers the impression that its products were made in Italy. Approximately 60% of its products are manufactured in China.

Spazio Casa claimed that its products were unique and not sold by other retailers in New Zealand. In fact, some of its products were readily available from competing suppliers.

It told consumers they would not find equivalent items for less. The Commission found that 19 out of a sample of 120 of their products could be bought from competing suppliers at a substantial saving.

The company also did not make it clear to consumers that their advertised prices advertised were GST exclusive.

In the settlement agreement, Spazio Casa admitted that the behaviour identified by the Commission was in breach of the Fair Trading Act.

Commerce Commission enforcement manager Greg Allan said while consumers should shop around and check prices before purchasing, they were entitled to rely on the information given to them by businesses.

“It is important that businesses exercise care when advertising their products, and consider how consumers are likely to interpret and perceive that advertising, to ensure it is not potentially misleading.”

Under the terms of the settlement, Spazio Casa will display a notice in each of its stores advising consumers of the contraventions of the Fair Trading Act. Spazio Casa will then endeavour to compensate any consumer who has suffered loss arising out of the contraventions.

The company also temporarily closed its website for review, removed all hard copy advertising material, and instigated further training of sales staff.