Safety Warehouse Fake Cash Row: Organizers Could Face $ 400,000 Fine From Commerce Commission

The company behind a controversial $ 100,000 cash handover promotional event in Auckland could face charges of up to $ 400,000 if it is found to have acted unfairly.

Greenback Ecommerce Ltd, which markets itself as The Safety Warehouse, is now under investigation by the Commerce Commission after Saturday’s cash drop event, where some of the money turned out to be coupons for its online store, printed to look like banknotes. $ 5.

Police investigated the complaints but transferred the matter to the Commerce Commission.

Consumer New Zealand CEO Jon Duffy told Mike Yardley of Newstalk ZB that the company may have violated Section 17 of the Fair Trade Act.

“The way it was promoted created an expectation that the company could never meet,” Duffy said today.

“Whether you argue that the expectations of the people who attended were reasonable or not, it is difficult to deny that people were confused about what was happening, and the company must take responsibility.”

Safety Warehouse insists that $ 100,000 in real money and $ 40,000 in vouchers were used, but Duffy said the investigation would establish exactly how much cash was being offered, how it was distributed to the crowd, and the intentions behind the stunt.

“They have to try to go ahead with the promotion they have created, and if they haven’t, they could be committing a crime.”

Duffy said unfair practices might not be the only potential charge.

“There’s still the question of how closely the coupons resemble a genuine $ 5 bill, so they might still have a problem there.”

The surprise turned to anger in Aotea Square when the crowd of up to 1,000 people realized they weren’t collecting real cash. Bottles were thrown at a Safety Warehouse vehicle and a staff member was taken to the hospital after glass from the broken rear window got into his eyes.

People traveled from out of town hoping to get some extra cash, and others have started a petition to exchange the coupons for real money.

Duffy said the Commerce Commission would generally not respond as quickly to the four complaints already filed, but this was a situation of great public concern.

“Particularly with many people struggling right now at the lower end of the socioeconomic spectrum and this type of promotional material is aimed at those groups that are most vulnerable, that probably spurred the commission to act faster.”

Safety Warehouse Managing Director Andrew Thorn said in a statement that the event had been “unfairly characterized” as a fake money event, when real funds were given away as anticipated.

Thorn said the company “did not intend to deprive, deceive or embarrass” anyone.

Similar coupons were used at a Hamilton bar over the weekend.

After reviewing the event, Auckland City Police Inspector Scott Gemmell said no evidence of crime has been identified from the information received. Gemmell said they have forwarded the complaints to the Commerce Commission for further review.

A spokesman for the Reserve Bank says that publishing a genuine note or coin that could be mistaken for something real can break the law, and anyone presenting a counterfeit note is committing a crime.

Retailers that accept counterfeits must file a police report and submit accepted counterfeits and any video evidence. They lose out unless they are awarded redress by the criminal through a legal process.