Celebration Box warned
The Commerce Commission’s investigation into controversial online company Celebration Box found it may have breached the Fair Trading Act but the watchdog chose not to take legal action.
Celebration Box sells gift boxes online, filled with packaged and loose confectionery and doughnuts, priced between $40 and nearly $100.
The company, which was started by social media influencer Iyia Liu, left a sour taste for some customers. Complaints about late deliveries and boxes arriving that weren’t as advertised, escalated on social media after feedback comments were deleted.
The commission’s investigation, which started in November following several complaints and concluded last month, found Celebration Box may have made misleading representations of goods, possibly breaching the Fair Trading Act.
In its compliance advice letter to Liu, the commission said that while it would not pursue legal action, it would consider Celebration Box’s compliance advice history if it received future complaints.
If the commission had taken legal action Celebration Box could have faced fines up to $600,000 and an individual up to $200,000 per offence.
In its investigation the commission considered several complaints about the products received being different from what customers ordered, and whether Celebration Box breached the Fair Trading Act by deleting negative consumer feedback and instructing influencers to promote products without disclosing they were advertising.
In its response to the commission, Celebration Box attributed its missteps to unexpected demand.