World accepts ruling on NZ-made labels
Designer and retailer World has accepted the Commerce Commission’s view that labelling on some imported clothing was liable to mislead consumers about the place of origin.
The company, co-founded by Dame Denise L’Estrange Corbet, faced intense media scrutiny this year when it was revealed that some of its clothing which featured tags saying “Fabrique en NouvelleZelande”— or Made in New Zealand — was actually made elsewhere.
When the scandal first broke, L’Estrange Corbet hit back at criticism, saying accurate labels were sown inside the garments.
After receiving numerous complaints about the clothing, the Commerce Commission announced an inquiry into the company in May.
In a statement released yesterday, the commission said its view was that tags reading “Fabrique en Nouvelle-Zelande” were likely to have led consumers to think the garments were manufactured in New Zealand when they were manufactured in China or Bangladesh.
Commissioner Anna Rawlings said that although another label was stitched inside each garment, this may not have been noticed in many instances and may have confused consumers.
The commission said when the error was revealed in local media, World immediately amended the tags on the garments. The investigation concluded with World accepting the commission’s view that its conduct was likely to breach the Fair Trading Act.