As per the first defended case in New Zealand, raised against a trader who is accused of making unsubstantiated representations on its website.Kiwipure Limited has been found guilty as it has mentioned some unsubstantiated claims about its water fiter’s benefits and effectiveness.
Kiwipure Limited has pleaded being not guilty to 7 charges following under the Fair Trading Act 1986. The charges are related to marketing claims mentioned on its website.
Kiwipure website claimed that:
• A magnetic ‘virtual ionizer’ in its water filtration system softened water.
• The benefits that consumers could expect of soft water after using the water filter, were ‘no scum build-up’, ‘useless washing powder’ and ‘no scale build-up in hot water systems and pipes saves electricity and maintenance.’
• Usage of their water filter would lead to a “reduction in skin irritations and eczema”.
Kiwipure has sold close to 300-400 of its claimed “world’s first” magnetic water filtration systems from 2015 to 2018. The cost of these systems of USD 1,395 excluding the installation charges. The Commission has raised the issue stating that Kiwipure did not do any reasonable study or trials about the product before making such marketing claims. Water Filter market is set t gain momentum in the coming years due to high demand for fresh and clean water, as per a market report study available with Value Market Research.
The case was heard in May before Judge Gibson in the Auckland District Court.
Kiwipure Limited website mentions that the benefits of its water filter system are “scientifically proven”. But at the trial, the company reasoned that it had reviewed the data avialable on internet which includes a report in which tests were conducted by some University way back in 2005. Kiwipure mentions that the study mentions the effect of treating water with a magnetic field. Kiwipure Limited also claims to undertake its own product trials which established the efficacy of the product and its benefits. The users too have reported satisfactory results.
Commerce Commission Chair Anna Rawlings stated that this case is a very important precedent for the Commission. It will reinforce the traders to have marketing claims which are well-grounded to the evidence.
Kiwipure is due to be sentenced on February 12, 2020 as the report.
Naira Shekhawat has been into Content Writing just after completing her Graduation in English Literature. Her love for words has won her many accolades in her respective jobs ever since. Naira covers business sections for VMR News. She is a traveller by heart and loves writing on food blogs as a freelancer.