In a statement, the Commission said it believed Buy Mobile was likely to have breached the Fair Trading Act as it could not provide the grounds or information it relied on when advertising certain prices for some models.
As an example, the Commission said Buy Mobile had advertised a NZ$930 discount on a Samsung Galaxy S% selling for NZ$339 on its website. Buy Mobile reportedly said it relied on publicly available information about competitors' prices to make discount claims, but could not provide this information when asked.
After being notified, Buy Mobile was no longer making comparative pricing claims.
“At the time a claim is made traders should be able to explain the basis for it and show where they got the information from," she said.
"When selling products like mobile phones, prices for which can change quite quickly, traders should have a system in place to ensure that any advertised discounts remain accurate and comparisons with other retailers are current.
“It is unfair to consumers who rely on pricing claims and to other businesses offering genuine savings, if price savings are exaggerated, or comparative information is not from a credible and current source."