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Topic # 238108 3-Jul-2018 15:44
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Just received:

 

 

PB Technologies Ltd (PB Tech) has pleaded guilty to 14 charges brought by the Commerce Commission for failings in its extended warranty agreements.

PB Tech markets itself as New Zealand’s largest computing and IT retailer with 11 superstores and servicecentres throughout the country.

The Fair Trading Act charges were filed in the Auckland District Court. They relate to extended warranty agreements sold to consumers and businesses that purchased PB Tech products between 11 May 2017 and 30 November 2017.

Businesses must give customers information about benefits provided by the extended warranty in addition to benefits already provided by the Consumer Guarantees Act. This information helps customers to decide whether they need an extended warranty and whether the benefits it provides are worth the price they are being asked to pay.

The charges alleged that PB Tech failed to give its customers a summary comparing their existing Consumer Guarantees Act rights with the rights provided by the extended warranty. Customers also were not given a copy of the extended warranty agreement after paying for it and they were not told their cancellation rights before signing up to the extended warranty.

The Commission is unable to comment further about this case while it is before the court. Sentencing will take place in September.

Following the same investigation, the Commission also warned PB Tech for bait advertising after it promoted Apple watches at special sale prices in an email to about 100,000 people when it only had 14 available at those prices.

The Commission’s view is that PB Tech likely breached the Fair Trading Act as it did not appear to have reasonable grounds to believe that it could supply reasonable quantities of Apple watches at the sale price, having regard to the nature of the market PB Tech operates in and the nature of the online advertisement. The qualifying statement ‘strictly limited stock’ was not displayed near the Apple watch advertising and in these circumstances, customers were not adequately alerted to the limitations of the 2016 Cyber Monday sale.

Commissioner Anna Rawlings says businesses should not promote sought-after goods to attract consumers into a shop or to a website unless those goods are available in reasonable quantities, or the business has made it clear that the goods are available in limited quantities.

“PB Tech admitted that it knew the watches would sell out and two complainants told us that they sold out in the first few minutes of the sale. Businesses must remember they should have reasonable grounds for believing they can supply the goods in reasonable quantities when they advertise them for sale.”

“Any limitations to stock availability must be made prominently so consumers can make an informed purchasing decision. If there are only a small number of goods available, it is best practice for businesses to clearly state precisely what that number is,”Ms Rawlings said.

Background

Extended warranties are sold as an add-on item when a consumer buys goods or services. It is different from a manufacturers’ warranty which may be included in the price or guarantees under the Consumer Guarantees Act.

 

You can read a copy of the PB Tech warning  letter here 

 





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  Reply # 2048371 3-Jul-2018 15:49
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About time, I have had issue in the past when i purchased something in one of their sales (after the system accepted the order and charged my credit card) then telling me 2 days later that they don't have stock and can't supply it.  I went back saying i would accept a replacement product which they said "sorry already refunded you".

 

 

 

I hope the next thing they get pulled up on is the changing of the prices a few days before a sale then when the sale starts lowering the price to just below or the same as the few days before to make it look like a bigger discount or a "on sale" price.


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  Reply # 2048373 3-Jul-2018 15:50
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tripp:

 

About time, I have had issue in the pass when i purchased something in one of their sales (after the system accepted the order and charged my credit card) then telling me 2 days later that they don't have stock and can't supply it.  I went back saying i would accept a replacement product which they said "sorry already refunded you".

 

 

 

I hope the next thing they get pulled up on is the changing of the prices a few days before a sale then when the sale starts lowering the price to just below or the same as the few days before to make it look like a bigger discount or a "on sale" price.

 

 

I hate the way PB tech have out of stock items listed for sale on their website. 

 

Happened to me a week back... ordered something , paid for it, then found out it wasn't available for at least a month. 

 

 


 
 
 
 


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  Reply # 2048385 3-Jul-2018 15:58
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to be fair to PB Tech, i havent had  any store explain my rights when they offer me an extended warranty , when i explain they could be fined for not doing it, the salesman  just gives me a blank look and carry's on. 





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  Reply # 2048386 3-Jul-2018 15:59
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  Reply # 2048392 3-Jul-2018 16:03
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vexxxboy:

 

to be fair to PB Tech, i havent had  any store explain my rights when they offer me an extended warranty , when i explain they could be fined for not doing it, the salesman  just gives me a blank look and carry's on. 

 

 

Most places have a print out of the difference between their extended warranties and the CGA.  


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  Reply # 2048401 3-Jul-2018 16:19

Does this apply to flight sales?

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  Reply # 2048422 3-Jul-2018 16:31
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Just had a poke around in settings, and there is an option to show only 'in stock'.  Done :)

 

 

 

 


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  Reply # 2048430 3-Jul-2018 16:42
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This is basically industry standard practice from my experience (not saying it is right) but I don't think they are any worse than any of the other big brand stores (HN, NL etc). 

 

PBTech have pretty accurate stock levels shown all the time, and it's quite obvious at time of checkout if the item you're buying is in stock or not.

 

When's the last time a salesman from anywhere told you the difference between the CGA and their extended warranty?


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  Reply # 2048436 3-Jul-2018 16:52
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When Are they going to exploit Noel Leeming...??




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  Reply # 2048772 4-Jul-2018 09:56
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tripp:

 

I hope the next thing they get pulled up on is the changing of the prices a few days before a sale then when the sale starts lowering the price to just below or the same as the few days before to make it look like a bigger discount or a "on sale" price.

 

 

I've been price-watching a 2-bay NAS at PB Tech, and it's been interesting to see the changes in price over time.  They show this particular model being about $150 cheaper than the normal price (which is struck-through above the current price), implying a significant discount.  But a quick check on Pricespy shows that it hasn't been that price for over a year, and that the most recent price change was closer to a $10 discount.  Anyone less than a savvy purchaser could easily be fooled into thinking it was a bargain, when it may actually have been cheaper the previous week.  Sneaky...


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  Reply # 2048783 4-Jul-2018 10:13
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Lizard1977:

 

tripp:

 

I hope the next thing they get pulled up on is the changing of the prices a few days before a sale then when the sale starts lowering the price to just below or the same as the few days before to make it look like a bigger discount or a "on sale" price.

 

 

I've been price-watching a 2-bay NAS at PB Tech, and it's been interesting to see the changes in price over time.  They show this particular model being about $150 cheaper than the normal price (which is struck-through above the current price), implying a significant discount.  But a quick check on Pricespy shows that it hasn't been that price for over a year, and that the most recent price change was closer to a $10 discount.  Anyone less than a savvy purchaser could easily be fooled into thinking it was a bargain, when it may actually have been cheaper the previous week.  Sneaky...

 

 

That is also illegal - surprised they haven't been busted for that too.

 

I know other retailers have software and people to ensure that when they are advertising a discounted price (eg $ or % off) that there is sufficient time that the product has actually been priced at the original price. The Commerce Commission takes a dim view of those sales that have no historical basis to show that the %/$ off is 'genuine'.


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