You’re not trying to deceive anyone; you just want to stand out in a crowded market. But under the Fair Trading Act, even well-meaning marketing can land you in hot water with the Commerce Commission if it’s misleading.
To help you stay compliant, here are five common advertising mistakes to watch for.
1. Overpromising
If it sounds too good to be true, the Commerce Commission takes notice. Be careful with bold claims, and only promise instant results if you can prove it.
2. Hidden catches
It’s great to highlight the best parts of a sale, just don’t let important terms and conditions get lost in the fine print. Customers appreciate clarity.
3. The urgency trick
There’s nothing wrong with a ‘Today Only’ deal…so long as it doesn’t run all week! In 2022, false urgency tactics earned online retailer 1Day an $840,000 fine.
4. Misleading language
In 2023, One NZ copped a hefty $3.675 million fine for a number of charges including advertising ‘FibreX’ as fibre broadband when it was copper. That false promise crossed the line, but even vague language can be a red flag. Always stick to clear, accurate wording.
5. Price hikes and fake sales
Make sure your sale prices reflect a genuine deal… because bumping up prices before a sale to make a discount look bigger isn’t a real saving!
The takeaway?
Being clear, honest, and upfront is the best way to earn trust and keep both your customers and the Commerce Commission happy.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
