Fabric Stock Complaints about Australasia's largest catalogue retailer, EziBuy,using misleading labelling and advertising have had continuingconsequences on both sides of the Tasman.

    Despite a settlement 12 months ago with the Commerce Commission inNew Zealand over wrongly labelled "mohair" throws, the retailerallegedly went on to sell cashmere pashmina shawls which wereactually cotton polyester.

    Ezibuy initially ran into problems when it advertised and sold anacrylic/mohair throw as a "mohair throw" with "pure mohair pile"for 12 months from October 2005.

    In September 2006 the label was altered to say "mohair pile woveninto a wool acrylic nylon base" but the outer packaging stilldescribed the product as a mohair throw.

    Over 11,000 were sold in New Zealand up to December 2006, buttesting showed it was 40 percent acrylic, 20 percent nylon, 30percent mohair and 10 percent wool.

    Ezibuy promised the commission that all future stock would beaccurately labelled and packaged, but later was charged afterallegedly selling the pashmina shawls as cashmere rather than acotton mix.

    It is expected to appear in Auckland District Court on September 3on charges of breaching the Fair Trading Act.

    Founded by brothers Peter and Gerard Gillespie in 1978, EziBuy hassales of about $150 million and employs about 650 people to sellclothing and home wares throughout New Zealand and Australia viathe internet, and mail catalogues.

    EziBuy also has 10 stores in New Zealand.

    Its contact centre, distribution centre and administration are runout of Palmerston North and its merchandising, marketing, financecorporate services and supply chain operations from Auckland.

    In Australia, EziBuy has just cut a deal with the commission'slocal counterpart, the Australian Competition and ConsumerCommission (ACCC) and offered refunds to Australian purchasers ofboth its mohair throws and pashmina shawls after acknowledging itsfabric labelling and advertising may have been misleading anddeceptive.

    The ACCC said in a statement released today that it accepted anundertaking from EziBuy over labelling and advertising of theitems.

    The ACCC said that it had accepted a court-enforceable undertakingfrom EziBuy that:

    * all future advertising will accurately describe the composition,quality or standard of the product range;

    * corrective advertising will be published in two catalogues, andcorrective advertising placed on its Australian website;

    * it has re-labelled all current stock and new season stock of thethrows;

    * offer refunds to misled customers;

    * will run a trade practices compliance programme for two years.

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