Water filtration company Kiwipure has been fined $162,000 for making "unsubstantiated claims" surrounding the benefits of magnetic water filtration systems.
The business had initially pleaded not guilty but was sentenced on seven charges under the Fair Trading Act back in December by the Commerce Commission.
The commission alleged that Kiwipure did not have reasonable grounds for making the marketing claims about the product's benefits on its website.
Kiwipure claimed the benefits of the magnetic water filtration system had been scientifically proven. However, the commission found the company's testing did not include reliable scientific methods.
The water filter company stated its filtration systems used a magnetic "virtual ionizer" to soften water, reducing the build up of grime as well as using less washing powder and electricity.
The company also advertised softer water would reduce skin irritations and eczema.
Auckland District Court Judge Gibson said the company had operated with a "reasonably high degree of carelessness" by promoting unsubstantiated claims without proper research into the product being carried out.