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Question Details: A local shop had an item advertised at a really good price, but when I went in there they told me they had sold out, even though it was only one day in to the sale. Is there any action I can take against them?
Filed under Consumer Law | 3016 View(s)
Community Law Wellington & Hutt Valley
Yes. This sounds like it could be 'bait advertising', where the shop has deliberately misled you by advertising an item at a sale price without having a reasonable amount of stock to supply expected demand. Shops aren't allowed to use bait advertising. It's an 'unfair practice', which is in breach of the Fair Trading Act. The Commerce Commission explains more about bait advertising on its website. Click here to link to the relevant page: www.comcom.govt.nz
If you think a shop might be using bait advertising, you have a few options:
First, ask the shop if they will make the item available 'on raincheck'. If the shop agrees, you'll be able to get the item at the advertised price when new stock comes in. Rainchecks aren't always available, but if the stock shortage is a genuine mistake this is the easiest way to get the item you're after.
If you think there's still a problem, you can take the shop to the Disputes Tribunal. You don't need a lawyer to do this and it’s relatively cheap. More information about taking a matter to the Disputes Tribunal is available by clicking this link: www.communitylaw.org.nz
You might also want to report the shop to the Commerce Commission. The Commerce Commission can't follow up all complaints, but they investigate and prosecute the most serious cases, including shops that repeatedly use these sorts of tactics. Information about making a complaint is at www.comcom.govt.nz.
Theoretically, you could also go to the High Court and ask for an injunction (to make the shop stop using bait advertising) or for compensation. You'll probably need a lawyer to do this. This is an expensive exercise for an individual and usually you would rely on the Commerce Commission to take up the most serious cases.
Answered 20 Aug 2012. The IMPORTANT NOTICE below is part of this answer.
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