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Com Com warns phone retailers on bundled products

Friday 20th August 2010

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The Commerce Commission has warned phone retailers not to hide contract terms in the fine print when they sell bundled products.

The regulator is concerned that bundling - where a retailer offers, say, home phone line and internet connection, makes it harder for consumers to choose individual elements and may breach the Fair Trading Act.

Bundling means "consumers can purchase those products at cheaper prices than what they would pay for the individual products in the bundle," said Stuart Wallace, Commerce Commission Enforcement Manager, Christchurch.

Product bundling can lead to cheaper prices and increased competition but there's a danger "that it can make logical consumer choice more difficult if prices, terms and conditions are not clearly explained".

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