Ordering from Mobicity

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ledzep01

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#91817 20-Oct-2011 20:50

There have been previous posts about the strange GST charging that occurs when ordering from Mobicity (mobicity.co.nz). It is a great web-site and the prices on the latest phones and tablets look great. I have ordered from them before, but I now urge caution to others. I won't go into the details here, but contact me directly if you are about to make a significant purchase from them and are concerned. In my latest involvement I believe they have breached the Fair Trading Act, and I have raised a complaint with the appropriate authorities. Most likely nothing will happen, but suffice to say that when GST + $38 is added to the price of the advertised phones the price is about the same as NZ, in fact in my case I think the retail price at Noel Leemings is less. I won't be ordering from them again - just a caution to others.

Talkiet

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#535842 20-Oct-2011 21:32

ledzep01: There have been previous posts about the strange GST charging that occurs when ordering from Mobicity (mobicity.co.nz). It is a great web-site and the prices on the latest phones and tablets look great. I have ordered from them before, but I now urge caution to others. I won't go into the details here, but contact me directly if you are about to make a significant purchase from them and are concerned. In my latest involvement I believe they have breached the Fair Trading Act, and I have raised a complaint with the appropriate authorities. Most likely nothing will happen, but suffice to say that when GST + $38 is added to the price of the advertised phones the price is about the same as NZ, in fact in my case I think the retail price at Noel Leemings is less. I won't be ordering from them again - just a caution to others.

They have previously told me that they would pay any GST incurred and in fact when I bought a phone from them I was not charged GST.

Have you in fact taken the issue up with them?

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

heavenlywild

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#535849 20-Oct-2011 21:39

Funny you mention this because in a very recent e-mail I asked them whether they would foot the bill if an order was charged GST. The answer a couple of months ago was, "Yes". Now, they say "it's up to you to pay it".

nakedmolerat

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#535851 20-Oct-2011 21:40

bought two phones with them before, one phone stopped by custom. they apologized and got it sorted. I don't have to pay anything extra

Talkiet

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#535855 20-Oct-2011 21:44

heavenlywild: Funny you mention this because in a very recent e-mail I asked them whether they would foot the bill if an order was charged GST. The answer a couple of months ago was, "Yes". Now, they say "it's up to you to pay it".

This link was VERY easy to find on their site and it's new (Sep 6th - I presume this year)

https://mobicity.zendesk.com/entries/20425191-nz-customs-duties-and-gst

Looks like GST is payable by the end user. Also looks like they are very up front about it in the ordering process.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

ledzep01

21 posts

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#536259 21-Oct-2011 20:24

With the gst, if the phone is relatively cheap I don't believe customs charge on the way in, so you may get a bargain. But when you do get charged gst you also get hit with a $38 collection fee. That's ok if the phone is heaps cheaper, but the prices on the site fluctuate and they aren't much different to prices in NZ stores (if the model is available). My recent issue with the site was slightly different, in that I paid for a Galaxy tab which was not in stock but due to be stocked shortly. I had checked this before ordering, and had verified the price. I was then contacted and told the model I was after wasn't stocked and I was given the option of a full refund or settling for a downgraded model (16 GB instead of 32 GB) with a refund for the difference. I decided to go for the downgraded model, which then turned out to have gone up in price. Then when I get the downgraded model 5 days later I see that the model I originally ordered is advertised again on the site in stock. I don't know if the place is dodgy, or if they are incredibly busy and completely disorganised. I have ordered from the site in the past without a problem, but I won't be dealing with them again. It is too much trouble and the price in retail stores is about the same. May be worth it for a cheaper phone if it comes through customs without gst (ie you'll save at least 15%).

Technofreak

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#537632 26-Oct-2011 10:35

Talkiet:
heavenlywild: Funny you mention this because in a very recent e-mail I asked them whether they would foot the bill if an order was charged GST. The answer a couple of months ago was, "Yes". Now, they say "it's up to you to pay it".

This link was VERY easy to find on their site and it's new (Sep 6th - I presume this year)

https://mobicity.zendesk.com/entries/20425191-nz-customs-duties-and-gst

Looks like GST is payable by the end user. Also looks like they are very up front about it in the ordering process.

Cheers - N

The big issue is this. It is my understanding is that the law states that all listed prices must show if GST is included or is not included. If you choose not to show whether or not GST is included when you list a price then that price is considered to be inclusive of GST.

MobiCity DO NOT say anywhere that their prices are GST exclusive until you go to make payment (i.e. you've already decided to buy and price would have been one of the deciding factors). The exception is on a FAQ page which most are unlikely to read. This is not good enough and IMO they are operating outside of the requirements of New Zealand laws when they do not clearly list their prices as GST exclusive.

The other issue I have and this isn't just with MobiCity is that to the casual observer several online shops look like they are a New Zealand based outfit with a New Zealand website when in fact they are nothing of the sort. It's getting harder and harder these days to know exactly who you are doing business with. Buyer beware I guess.

One thing that does ring the alarm bells is the standard of English and the unusual phrases that are used on some some sites. This tells me that perhaps the site isn't New Zealand based like it is trying to make you think it is

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old3eyes

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#537698 26-Oct-2011 13:11

Technofreak: One thing that does ring the alarm bells is the standard of English and the unusual phrases that are used on some some sites. ?This tells me that perhaps the site isn't New Zealand based like it is trying to make you think it is

I think you'll find it based in Australia..

Regards,

Old3eyes

Technofreak

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#537711 26-Oct-2011 13:23

old3eyes:

I think you'll find it based in Australia..

Yep I know that. It's not immediately obvious though, which was the point I was making.

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