Watchdog warns Borders over misleading vouchers

The Commerce Commission has issued a warning to Borders that a pre-Christmas voucher promotion risked breaching the Fair Trading Act. 

In November and December 2009 Borders advertised a promotion with the headline offer “Receive $20 in vouchers for every $75 you spend at Borders until Christmas.”

The promotion was widely advertised in-store and online through an e-newsletter and on Borders’ website.

However, the small print of the offer specified that customers could only redeem one $10 voucher in January and a second $10 voucher February, which, in the commission’s view, materially changed the headline offer - constituting a breach of the Fair Trading Act.

“The commission received complaints from consumers saying that they felt misled as they had spent the required amount believing that they could get a $20 discount for one purchase,” said Mr Allan.

“We are pleased that Borders will honour the vouchers for a $20 discount for one purchase and that they will continue to honour the vouchers beyond the current expiry date of the end of February.”

The Commission will not be taking any further action against Borders at this stage but will continue to monitor Borders’ promotions.

A breach of the Fair Trading Act can result in a fine of up to $200,000.

Borders has stores in Auckland, Hamilton, Wellington and Christchurch and is a division of REDgroup Retail which is a book, stationery and entertainment retailer operating in Australia, New Zealand and Singapore.