Share on LinkedInShare on LinkedIn

ARTICLE · 15 OCTOBER 2017

Unsubstantiated representations – Fujitsu first scalp for Commerce Commission

Fujitsu is the first business to be convicted under the unsubstantiated representations provisions in the Fair Trading Act.

New ZealandConsumer Protection

Fujitsu General New Zealand Limited is the first business to be convicted and fined under the unsubstantiated representations provisions in the Fair Trading Act, which came into force in June 2014.

Under the Fair Trading Act a business must not make representations about its products or services if it does not have reasonable grounds for the representations when they were made. More information about these requirements can be found here: Consumer law reform: unsubstantiated representations.

Fujitsu pleaded guilty to seven charges under the Fair Trading Act for unsubstantiated representations made between June 2014 and October 2016 and was fined $310,000. On its website and in promotional materials, Fujitsu claimed that its heat pumps were "NZ's most energy efficient heat pump range" and that a particular range provided "better heat efficiency" and was "the most efficient system ever". Fujitsu accepted that it had no reasonable grounds to make these claims.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from