The District Court of New Zealand has ordered Brand Developers Ltd, trading as The TV Shop, to pay a penalty of $1,104,000 due to various misleading practices, including employees posting positive product reviews without disclosing their affiliation with the company.

Evidence revealed that staff members posted reviews without using the products and solicited friends and family to leave positive feedback. Additionally, The TV Shop systematically removed negative reviews from its website, only publishing low ratings if customers responded to follow-up emails.

Commerce Commission Deputy Chair Anne Callinan emphasized the importance of genuine online reviews, stating that misleading practices undermine consumer trust. Judge Belinda Sellars KC described the company's actions as “deliberate and systematic,” noting that management was aware of and directed these misleading practices.

In a previous judgment, the court found that The TV Shop misled customers regarding their rights under the Consumer Guarantees Act, suggesting that customers had no rights beyond a limited money-back guarantee. The company also misrepresented “free” or “bonus” items in its advertising.

The TV Shop has a history of non-compliance, having been fined previously for failing to disclose warranty information and for misrepresentations regarding product certifications. The Commerce Commission has filed further proceedings against the company for engaging in unconscionable conduct.