Marketing tactics by online trader and prolific television advertiser Brand Developers being described by Commerce Commission as amongst ‘the worst of its kind’ saw the company now further fined $1.1 million for multiple offences leaving it with a Fair Trading Act rap sheet matching that of a recidivist offender: its latest conviction added to prior convictions in 2015 and 2021 plus a Commerce Commission warning in 2010 and three subsequent letters demanding improvements to its marketing techniques.
Controlled by Auckland-based Paul Meier, Brand Developers operates an online direct marketing service coupled with direct response television infomercials utilising fast-talking, high pressure ads for consumer products.
Most recently, Commerce Commission took exception to company treatment of dissatisfied customers.
The District Court was told of company policy to manipulate customer satisfaction reviews on its website by deleting low-rating reviews, replaced by staff-generated reviews extolling the value of goods sold. Fictitious reviews were posted from multiple email addresses and different servers to disguise the fact reviews were not independent of the company. In some cases, payment was made to generate false reviews.
These false and misleading endorsements of Brand Developer products were in breach of the Fair Trading Act, Judge Sellars ruled.
Brand Developers was also convicted of misleading warranty claims.
When customers belatedly complained about faulty products, employees declined refunds as too late, reading from a company script stating Brand Developers’ promises of a ‘risk-free trial’ and ‘30-day money back guarantee’ overrode any Consumer Guarantees Act warranties.
This tactic was designed to wrongly exclude customers otherwise entitled to a refund if they claimed outside Brand Developers thirty-day period, Judge Sellars said.
Evidence was given of seven customers who challenged Brand Developers’ policy, getting refunds outside the thirty-day period only after considerable time, frustration and anger.
Brand Developers told the court it intended to pay $1000 reparation immediately to each of these customers.
Brand Developers was also convicted on Fair Trading Act charges of false and misleading use of ‘free’ and ‘bonus’ wording in advertising sale of some 5000 air fryers over a nearly three-year period.
The supposedly free accessory pack supplied with each air fryer in fact came with all units as a matter of course and could not be readily sold separately.
The court was told Brand Developers was warned back in 2010 that regular product advertising of ‘buy one, get one free’ raised the presumption that the deal continually on offer was in fact two items delivered for the stated price: nothing was ‘free.’
In fining Brand Developers $1.1 million, Judge Sellars took into account that company turnover has declined recently: $48.2 million revenue from New Zealand sales in the 2020 year; $14.6 million for the 2026 year.
Commerce Commission v. Brand Developers Ltd – District Court (6.08.26)
26.222