Reviews with one, two or three stars would not be published unless the customer responded to a follow-up email from the company.
No low rating reviews were published for a period during 2020.
In her sentencing decision, Judge Belinda Sellars KC called The TV Shop’s offending in relation to online reviews “deliberate and systematic”.
She said its managers and executive were aware of, and at times directed, the conduct.
“It is clear from the evidence that BDL made concerted and repeated efforts to improve the online rating and reviews of its products and thereby deliberately mislead consumers.
“The methods that staff were instructed to follow for posting reviews were designed to circumvent Product Review and Google’s processes to stop non-independent reviews.”
Commerce Commission deputy chair Anne Callinan said it was unacceptable to post or manipulate product reviews in a way that misleads people.
“My message to businesses is simple: don’t pull the wool over people’s eyes,” Callinan said.
“Kiwis should be able to trust online reviews are genuine and free of manipulation.”
In its December judgment, the court also found representations about “free” or “bonus” items were misleading.
The TV Shop’s popular Air Roaster Pro product was advertised for three years as including an accessory pack, described as a “free” or “bonus” item, or “special offer”.
In reality, the product was always sold with the accessory pack and customers were not getting anything extra.
The TV Shop also systematically misled customers about their rights under the Consumer Guarantees Act (CGA).
The company had policies and instructions in place that meant call centre staff suggested customers had no rights to refunds or remedies beyond a “30-day Money Back Guarantee scheme” or “risk-free trial” if customers thought products were broken, faulty or mis-advertised.
“Representations made by a business about the CGA are extremely important to consumers given the protective nature of the legislation,” Sellars said.
The TV Shop was previously fined $123,500 in 2022 after failing to comply with extended warranty disclosure requirements.
In 2015, the business was fined $153,000 for misrepresentations that a ladder being sold or advertised had a certification when it did not.
The Commerce Commission filed separate proceedings against The TV Shop in February, alleging the company engaged in unconscionable conduct by utilising exploitative and misleading practices when selling high-value products to consumers.