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Godfreys sucks it up over disclosure rules

NZ Newswire logoNZ Newswire 1/09/2016

Vacuum cleaner retailer Godfreys has admitted its selling of its extended warranty agreements sucked a little bit.

The Australian company has admitted charges brought by the Commerce Commission that it failed to tell more than 3000 customers how the extended warranty compared with their existing Consumer Guarantee Act rights.

It also failed to tell them they could cancel the extended warranty within five days of purchase.

The Commerce Commission says the 10 charges were laid over extended warranties sold to 3202 customers between June 2014 and September 2015.

The warranties ranged in price from $49 to $99, depending on the cost of the vacuum cleaner.

Godfreys fell foul of a June 2014 change to the Fair Trading Act, which imposed disclosure requirements for extended warranties, the commission said.

It is the first time the commission had laid charges over the changes.

It wasn't commenting further while the case was before Manukau District Court.

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