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Mobile trader guilty of criminal charges

NZ Newswire logoNZ Newswire 29/11/2016

The owner of a mobile trading company has been found guilty of criminal charges, with a Commerce Commission crackdown on the industry catching out 10 businesses.

Vikram Mehta has been found guilty of being a party to obtaining money by deception by making false claims to customer at the Auckland District Court over his company Flexi Buy's operations.

Flexi Buy was the first mobile trader to be sentenced after a commission investigation led to a crackdown on the industry last year.

The door-to-door electronics company was fined $50,000 and was also ordered to pay out $3400 in damages after it was found only nine of its 300 customers between 2013 and 2014 had received their goods as promised in contracts.

It sold its goods in catalogues around main centres in the North Island and was also caught out for failing to provide its customers with key information about contracts.

It has stopped trading since.

The commission says it has now prosecuted 10 different mobile traders this year.

In a 2015 report it found just one of the 32 mobile traders it investigated managed to meet all of its legal obligations.

Mehta will be sentenced next year.

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