Inquiry clears Total Image after changes

Press, 6 September 1983, Page 2

Inquiry clears Total Image after changes

PA Wellington Total Image New Zealand, Ltd, which was investigated by the Examiner of Commercial Practices for suspected pyramid selling, has been cleared after the company proposed substantial changes to the scheme. The Examiner, Mr Peter Donovan, investigated the marketing method and sales structure proposed by the company for the distribution of health foods under a section of the Commerce Act, 1975, which defines a pyramid selling scheme. Such schemes are prohibited trade practices. Mr Donovan said yesterday that during the investigation the company proposed a number of substantial changes to the scheme, including limiting the number of distributors, altering

the marketing structure, and providing a product guarantee. The company had also agreed to allow all those who had signed distributor agreements to reconsider their participation in what was largely a different scheme from the one on which recruitment began and to provide full refunds for those who wished to withdraw. Mr Donovan said he was of the opinion the new scheme was not one which required investigation in terms of the pyramid selling provisions of the Commerce Act.

The price of the goods being distributed by Total Image New Zealand, Ltd, was being looked at by the Trade and Industry Department in terms of the Price Freeze Regulations, 1982.