Godfrey Hirst New Zealand Limited said today the Court of Appeal has allowed its appeal and confirmed that a High Court judgment it obtained in July 2013 against Cavalier Bremworth over misleading warranties did not go far enough to protect consumer interests.
Godfrey Hirst General Manager, Tania Pauling said: "We are pleased that the Court of Appeal has agreed that the High Court underestimated the extent to which Cavalier's conduct was likely to mislead consumers. The Court has found that the headline statements in Cavalier Bremworth's advertising gave consumers a false impression of the value of these warranties, given the large number of conditions and exclusions.
We expect that others in the industry will now clean up their act, and stop advertising warranties that promise the earth but are gutted by their fine print. It is wrong to advertise a "soil resistance" warranty that excludes mud, or a "stain resistance" warranty that excludes almost anything that might stain a carpet.
We also believe that this clear decision from the Court of Appeal will be of real value to New Zealand consumers in other retail segments in New Zealand where headline warranties are offered which do not deliver in any meaningful or substantive manner.”
Ms Pauling also thanked the Commerce Commission, who intervened in the appeal because of their concerns over the use of misleading headline advertising, particularly in online advertising and selling.