Noel Leeming criticised for selling essential items that are out of stock

Laptops for sale in a shop.

Noel Leeming is facing a barrage of online criticism for selling essential items on its website during lockdown that were actually out of stock.

As of Thursday 29 people had filed complaints with the Commerce Commission, with many others taking to social media to call the retailer out and asking TVNZ 1's Fair Go programme to get involved.

A number of customers have said on Noel Leeming’s Facebook page that they purchased items classed as essential on its website, only to find out at a later date - once payment had been processed - that the product was out of stock.

The Commerce Commission has clear messaging about its advertising standards for online.

In its consumer rights FAQ , the commission says “sellers are prohibited from offering goods for sale where they have no realistic expectation of being able to deliver them”.

As of yesterday, the Commerce Commission said it had received 29 complaints related to Noel Leeming and its issues with delivery of essential products during the Level 4 Covid-19 lockdown.

The commission said it is currently in talks with Noel Leeming about these complaints.

“All retailers currently offering goods online should ensure they are able to deliver them within a reasonable time,” a Commerce Commission spokesperson said.

“Goods should not be offered for sale when the seller, not having the goods in stock, does not have knowledge of when the item will be in stock and able to be delivered.”

DISGRUNTLED CUSTOMERS

Disgruntled customers have also asked Fair Go to get involved, citing long wait times on customer service calls and products that had been purchased, but not delivered.

One Christchurch couple said Noel Leeming seemed to have “adopted bait advertising” and said they have had to wait for 45 minutes at a time to speak with someone in customer service. 

Ross Williamson bought a laptop and a mouse for his wife Ellie off of the Noel Leeming website on April 1. He says both products were listed on the website as available.

The usual automated e-receipt was sent on the same day acknowledging his purchase. However, on April 3, Noel Leeming emailed to tell Mr Williamson the wireless mouse had been sent, but they were waiting on stock for the laptop.

“The mouse was delivered within two days but I said it was useless without the laptop,” says Mr Williamson.

He says they contacted Noel Leeming to ask if they had a similar product in stock that he could be sent instead, which was the first of many emails to go unanswered.

“They didn’t have the courtesy to reply to the emails, it’s just been a nightmare. On April 6 I rang and cancelled but they still carried on with the order,” says Mr Williamson.

The laptop ended up being delivered, but Mr Williamson had already cancelled their order. He says they refused to accept the laptop and called again to get their credit back.

The couple was promised a refund for the laptop within three to five working days from April 6, but didn’t receive it until the 17th.

“I said 'this has to be a joke doesn't it?' We’ve cancelled it. They wouldn’t give the credit back until we got the laptop back.

“It’s just not right, it’s pathetic. I know everyone’s under pressure but their systems weren’t set up for the lockdown and they should have been.”

The Williamsons are not alone in their plight. Noel Leeming's Facebook page has a pool of disgruntled commenters waiting to either hear back from the company, have their product delivered, or get a refund. 

ISOLATED INCIDENTS

Noel Leeming said out of stock products being sold online were "isolated incidents".  

Jason Bell, general manager of merchandise, says all of Noel Leeming's stock marked as essential and offered for purchase online is either "available from our fulfillment centers or available from our suppliers before being available for purchase".

"In some isolated instances, a spike in demand or a delay with a supplier has meant stock has run out before we could update the status online. In these situations, we make contact with the customer to offer an alternative product or a refund."

He says Noel Leeming has added four times the resource to its customer service team and significantly expanded its fulfillment network to deliver thousands more orders each day.  

"We apologise to our customers and we’d like to thank them for their patience. From Tuesday, when we move to Alert Level 3, our store network will be able to significantly ease any backlog of orders," says Mr Bell. 

In 2018 the retailer was fined $200,000 for misleading consumers about their rights under the Consumer Guarantees Act, following a Commerce Commission prosecution. It saw Noel Leeming convicted on eight charges under the Fair Trading Act.

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