Strandbags has had seven charges issued against it by the New Zealand Commerce Commission over its discounting and sales practices.
The Commerce Commission alleges that between July 2018 and January 2020 the bag retailer's advertised discounts or special prices were liable to mislead the public.
According to the Commerce Commission, during the period Strandbags advertised sale prices using methods such as strikethrough pricing, percentage discount claims, savings claims and was/now pricing.
"The Commission alleges that this conduct created the impression that prices being offered were significantly discounted or special prices when products were in fact being sold at their usual price or nearer to their usual price than consumers would believe to be the case," the Commission said in a statement.
"The Commission alleges that advertised discounts were liable to mislead in a variety of ways.
"For example, some products had not been previously sold at the higher price from which a discount was said to be made, while others were on sale for so long that the prices could no longer be said to be special.
"The Commission also alleges that the prices of certain products were artificially inflated prior to promotion in order to make a more significant discounted pricing claim," the Commission said.
According to Strandbags' website, it operates 300 stores across Australia and New Zealand, with the Commission stating 28 of those are in New Zealand.
Meanwhile, in 2017, NZ retailer Bike Barn was fined $800,000 by the Auckland District Court for misleading consumers about discounts and the duration of such sales.
Strandbags' case is currently before the court.
Strandbags has been approached for comment.