The Commerce Commission has warned Dell Computer that its use of small print risks breaching the Fair Trading Act.
The commission was concerned about the very small print size used to list conditions in an advertisement where the conditions had a major impact on what was being advertised.
In other cases courts have ruled that small print cannot be used to correct an otherwise false or misleading impression, says Commerce Commission fair trading manager Rachel Leamy.
The commission felt that Dell's advertisement may mislead consumers about rights they are given by the Consumer Guarantees Act which cannot be taken away in contracts or terms of trade.
The commission was also concerned that additional delivery costs were not clearly disclosed.
Wellington retailer Quay Computers also received a warning that it risked breaching the Fair Trading Act by advertising goods that it did not have available.
Quay Computers continued to advertise on its Web site and in store components that were not available. Leamy says the act prohibits "bait advertising", advertising of goods and services that the advertiser doesn't intend to supply or doesn't have reasonable grounds to believe it can supply at the advertised price for a period and in quantities that are reasonable.