Total Image check

Press, 1 June 1984, Page 7

Total Image check

PA Wellington The Justice Department's Commercial Affairs Division is investigating the activities of Total Image N.Z., Ltd. the direct-selling diet food distributor. The Registrar of Companies. Mr Kevin McCormack, said yesterday that the investigation was being carried out under powers of inspection provided in section 9 of the Companies Act. Total Image International’s public relations director. Mr Philip Lanham, said on his arrival in New Zealand last week-end that Total Image N.Z., which works under franchise from the parent company, had had financial difficulties. The company’s bankers had dishonoured several of its cheques because of insufficient funds but the situation had been solved. Mr Lanham said. “We now issue cheques only when we have money in the bank to cover them,’’’ he said. The Examiner of Commercial Practices, Mr Peter Donovan, has announced he is investigating another direct-selling scheme for health products to decide whether it is a pyramid selling scheme. Anyone considering joining the scheme, run by an organisation called Personal Best, should first seek legal advice, he said. “Pyramid selling schemes are illegal and persons promoting or running such schemes commit an offence,” he said. Any statements claiming that either that he, or the Trade and Industry Department, had approved the Personal Best selling scheme were incorrect, Mr Donovan said. There was no provision under the Commerce Act for such schemes to be approved. When his investigation was completed, if he was satisfied it was not a pyramid scheme, no action would be taken but there would be no "approval” of the scheme, Mr Donovan said.