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NZ Business Fined For Out-of-Date Website

Peter writes "A story reports that a restaurant in New Zealand has been fined NZ$3000 for failing to keep its website up to date. By having out-of-date menus and prices on its website, it has breached the Fair Trading Act, according to the New Zealand Commerce Commission."

42 of 377 comments (clear)

  1. Nonsense by Stevyn · · Score: 5, Informative

    The fact that it's on the Internet is moot; it's false advertising. Simply that.

    1. Re:Nonsense by nacturation · · Score: 5, Insightful

      I'd take exception to this if it were just a matter of the owner once having a website done up and then forgot about it. But the restaurant was warned not only by the customer who complained but also by the restaurant assocation. Even after all that, nothing was done. So it's clearly false advertising.

      And, once again, this has *nothing* to do with my rights online. How's that Legal section coming along, Taco?

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    2. Re:Nonsense by __aadhrk6380 · · Score: 5, Insightful

      Amen!

      If you advertise rates and don't meet them, you're wrong. I can understand "forgetting" to update your site, but once someone told you about it and it still goes uncorrected? There has to be some responsibility on the part of the advertisor (regardless of the medium) to make things right. Internet ads still account for billions of dollars world wide, and this is no different than a regular print or TV ad.

      There have to be warnings in place prior to sanctions - Again, there is always the possibility of an oversight, especially in the case of a company that doesn't use the web as their primary advertising method, but once notified, fix it for Gods sake!

      I was ready to come down hard here, but after I RTFA, I don't have a problem with this.

    3. Re:Nonsense by mikeswi · · Score: 4, Funny

      I had nearly the same thing happen to me yesterday as the customer in that story. For some reason, I woke up with a craving for a surf & turf omelette (grilled shrimp + steak strips). So I looked up the web site of this place in Tybee Island, GA where I used to have those.

      The web site still lists Surf & Turf omelettes on the menu. So I drove all the way there (2 hour drive. Believe me, those omelettes are worth it. They also make the best damned cup of coffee in North America) just to find that shrimp are out of season and so they didn't have any to make a surf & turf.

      Maybe I should email them a link to this story and a link to their own menu. That was pretty annoying.

    4. Re:Nonsense by Frank+T.+Lofaro+Jr. · · Score: 5, Insightful

      False advertising on the Internet is still false advertising, no new laws are needed, it is illegal in any medium. In general things illegal in one medium are illegal in all, unless the law specifies otherwise.

      This isn't a rights or "Internet" or online case primarily, it is a case of false representations that happened to be on the Internet. Not fundamentally different than if it had been in a newspaper or radio ad, or a billboard, etc.

      --
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    5. Re:Nonsense by brilinux · · Score: 3, Insightful

      Yeah, then maybe Slashdot would get fined for all those dupes and old stories.

    6. Re:Nonsense by hunterx11 · · Score: 3, Informative

      Even Ayn Rand wanted fraud to be illegal. GP is just a troll.

      --
      English is easier said than done.
    7. Re:Nonsense by Coryoth · · Score: 4, Insightful

      Alternatively you can just point out that free markets tend to work best when the parties involved in a transaction have as information as possible. Introducing false information distorts transactions and harms the efficiency of the free market. Requiring truth in avertising is helping the maximise the efficiency of the market.

      Jedidiah.

    8. Re:Nonsense by nacturation · · Score: 4, Funny

      If I had to stretch my imagination for every story like this, my brain would look like the goatse guy.

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    9. Re:Nonsense by whathappenedtomonday · · Score: 5, Funny
      False advertising on the Internet is still false advertising

      you mean things like "news for nerds, stuff that matters", right?

      --
      I hope I didn't brain my damage.
    10. Re:Nonsense by Anonymous Coward · · Score: 3, Interesting

      Would an old 1973 catalogue also be false advertizing? See, the law *does* have to specify whether a webpage can be just like a printed catalogue, accurate only at the time of publication.

    11. Re:Nonsense by Anonymous Coward · · Score: 3, Insightful

      This is a completely ass-backwards understanding of economics. Free markets cause informed consumers, not vice versa. What, you think capitalism doesn't work unless and until everyone tells a close approximation to the truth? That's nuts. If that were true, we'd still be living in caves. Humans are not by nature honest with each other.

      Indeed, buyers and sellers have every motivation to lie to each other, and will do so in an unfree (e.g. Soviet) market as much as possible. But in a free market, entrepreneurs can easily drive liars out of business simply by hewing closer to the truth, because it's an obvious fact of economics that most business is repeat business, and an obvious fact of psychology that no one likes doing business with a liar.

      Put it another way: adding false information to a product is just selling an inferior product. In a free market someone can and will come along and sell the same product without attaching a false information "feature." Then, with his "better quality" product he'll drive you out of business in no time. He'll have great fun and much success pointing out your lies in his own advertising. That is exactly what happens in modern American advertising. You can always count on Chevy to point out where Ford stretches the facts, or on Microsoft to keep the consumer thoroughly informed of the drawbacks of Mac OS X or Linux. These forces are far more powerful at keeping corporations honest than any fiddling oversight by the government.

      Honesty naturally evolves in a free market because it is the only way for a business to survive in the long run. When markets are not free, public honesty tends to suffer greatly.

    12. Re:Nonsense by awol · · Score: 4, Insightful

      "Alternatively you can just point out that free markets tend to work best when the parties involved in a transaction have as information as possible"

      Not just tend, but information is necessary for the existence of a free market. Indeed one of the most valid criticisms of free market microeconomics (well even macro actually) is the assumption about perfect information. Without it, the market cannot be free.

      --
      "The first thing to do when you find yourself in a hole is stop digging."
    13. Re:Nonsense by Midnight+Thunder · · Score: 3, Insightful

      It is probably laziness, but if the restaurant owner does not want to spend time updating the web site, then (s)he should not present information that is likely to go out of date.

      --
      Jumpstart the tartan drive.
  2. Re:Scary by Shachaf · · Score: 4, Insightful

    As long as you don't sell things and claim they cost less than they actually do, there shouldn't be a problem.

  3. this happened to my dad's engineering company by CAIMLAS · · Score: 4, Informative

    This happened to my dad's small engineering company. He had the phrase "engineers" on the site, when in fact there was a single engineer (PE) and an EIT (engineer in training) who was weeks away from becoming a full-fledged engineer.

    I think the state board of licensure fined him something around $50,000? Absolutely rediculous. Granted, the head of the board was the engineer for a competing company I believe, so there might've been other motivations... stupid small states.

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    1. Re:this happened to my dad's engineering company by Pxtl · · Score: 4, Insightful

      Well then, why don't we start calling police officers "lawyers", and military aircraft pilots "commandoes".

      The word Engineer means something. It denotes a level of legal and professional obligation to one's work that does not necessarily exist in other careers. When an individual software developer becomes personally legally responsible for the performance of his company's product, then he can call himself an engineer.

      That kind of legal liability don't sound fun? Well then, don't be champing at the bit to get to call yourself "engineer". Its not a snobbery thing, its a safety thing: a person knows that, if they hire an engineer to do something, then they're legally required to stand behind their work. As such, certain jobs require an Engineer, not an "engineer" - this is much like how a person can have a doctorate in biology and extensive medical knowledge, but can't practice legally as a medical doctor. Its for safety reasons - he might be every bit the doctor as the real, certified person, but he has not sworn to the hippocratic oath, he does not have malpractice insurance set up, and various other considerations of accountability may not exist. Also, the state did not keep as close an eye on his medical training. Engineering programs are inspected.

      The whole Engineer licensing thing didn't start because of a bunch of engineers wanting to stroke their egos. It started because of a series of catastrophes where nobody was accountable.

      So, if you are not designing safety-critical systems, there's no reason to want to call yourself an engineer, unless you just like the fancy word. It is not just a fancy word - abusing it is just like people who use the word "literally" for emphasis.

  4. There's nothing wrong by MC68000 · · Score: 5, Insightful

    The internet is a mature medium. The restaurant was warned about it, and they failed to do anything. It's an open and shut case of false advertising. Would you tolerate your brokerage firm listing out of date brokerage fees? Or your bank listing out of date interest rates?

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  5. It's false advertising by sahonen · · Score: 3, Insightful

    Exactly why is a web site a special case from other forms of promotion and advertising?

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    1. Re:It's false advertising by nacturation · · Score: 5, Insightful

      Once you start a website, should you be legally obligated to keep it up to date? What if it's a personal website that gives obsolte directions on how to get somewhere? This seems like a really hasty and simplistic decision by people who haven't thought the situation through.

      Imagine if your bank advertised no charges on all bank accounts on their website, so you sign up for several accounts and all your friends an family do too. At the end of the month, you get your statements and find that you've been charged a lot in bank charges. So you notify the bank about it and also let the local banking assocation know. The banking assocation also notifies the bank about it but still the bank does nothing to correct the obvious error, such as having the page removed or shutting down the site.

      Do you think it's wrong to fine the bank in that situation?

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    2. Re:It's false advertising by novakreo · · Score: 3, Informative

      While the restaurant was clearly stupid for not doing anything even after being warned, I'm not at all convinced that commercial enterprises are (or should be) under an obligation to find and destroy all out of date promotional material. Which is essentially what this judgement amounts to.

      Nice straw man. Nobody is saying the restaurant, or anybody else, should have to destroy old promo material.

      Anyone who now visits the website (assuming it hasn't been updated), will see old prices, which is equivalent to new promotional material deliberately containing old prices. I say deliberate, because TFA states the restaurant was informed of its oversight. This is false advertising, and this is what they have been fined for.

      What if it's a personal website that gives obsolte directions on how to get somewhere?

      I'm not a New Zealander, but I doubt that their Fair Trading Act would apply to individuals who aren't running a business. It seems that all you're doing is scaremongering about what is a perfectly reasonable judicial decision.

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    3. Re:It's false advertising by tria · · Score: 3, Informative

      Not a lawer, but the bit of law he was fined under only applies if promoting goods or services: Fair Trading Act 1986 Part 1 S13 SS(g): No person shall, in trade, in connection with the supply or possible supply of goods or services or with the promotion by any means of the supply or use of goods or services,-- g) Make a false or misleading representation with respect to the price of any goods or services; or

  6. What next? by ediron2 · · Score: 3, Funny

    In other news, the Staten Island Ferry was fined $30,000 after a customer got in line clutching a rate card from 1958.

    Turning to Europe, a German recycling firm was shuttered over the weekend when it was discovered that, in a locked, donated trunk of old books and papers, they had been in posession of WWII-era Nazi propaganda.

    And PETA's founder was forced to resign today after it was learned his father once ate a steak. Rare.

    1. Re:What next? by ediron2 · · Score: 3, Insightful
      Regarding RTFA, I did. The OP stated that the fine was due to 'failure to keep (a) site current'. The articles indicate owner unwillingness, but the owner was quoted as claiming he lacked the time or the skills to fix the site.

      If you know a few business-owners (esp restaurant owners), you'll agree that some are utterly clueless on IT and economic/finance practices. What if this guy really is just clueless?

      This NZ$3000 case isn't an ideal case for what I'm saying, but what about the precedent? This potentially sets a legal and public-opinion precedent that I'm not thrilled with:

      1. First precedent: publishing specific details are risky on your website, because you can be held accountable long after you've forgotten that you ever created some orphan page. Think I'm crazy? Imagine a one-time web ad: 'throughout june, mention this ad and get a surf-n-turf special for $12.95'.... oops, no year. Now, your cut-rate $50-per-modification webmaster cuts the link in July, but leaves the html on the server for your/his future reuse, and some webcrawler never forgets it. As I said, 'In other news, the Staten Island Ferry was fined $30,000 after a customer got in line clutching a rate card from 1958.'

        Suing a company for old, orphaned, or flawed webpages creates a small barrier against entry. It gives an avenue for large firms to hammer on smaller/weaker competitors (into oblivion) for insufficient detail or inaccuracies online. If they act defensively, they publish less detail, and we lose detailed data because of the maintenance costs.

        Would you rather price information for some shops be utterly unavailable online? Is that the stance of everyone disagreeing with me here? 'Cuz we risk a subtle chilling effect happening if the 'net is policed for accuracy, whether by a government commission or by competitors given more leeway to frivolously sue.

        Would the restaurant's site be sufficiently fixed if a tiny bit of print said: 'last updated 21-Sept-2004'? Because I can't count the number of restaurants, bars and arts venues, online stores, peer-review sites and newspaper/magazine-based reviews that have some small bit of out-of-date info on the 'net.

        Hell, even this story suffers the time-distortion effects of the web: it was old enough news that I literally found 130 copies of the story on the web. Apparently, nerds are among the last to know that this happened in February.

      2. Screwed by a gift: a friend/customer/admirer or some wannabe offers you a bargain website? Turn it down, because they might not give you keys to the site, maintain it, etc., but you'll be held responsible. Or, in my facetious tone, '...it was discovered that, in a locked, donated trunk of old books and papers, they had been in posession of WWII-era Nazi propaganda.'

        Would you rather only *large* companies advertise online? Because that's another risk: if you can't afford to pay for the maintenance, don't advertise online. Also, if you can't afford to have your ad vetted for legal risks, don't run it.

      3. Killed by bad press: even a lame claim against a PR-dependent company can do massive damage. And PETA's founder was forced to resign today after it was learned his father once ate a steak. Rare.

        Would yu want your favorite hangout to take the PR hit for being 'under investigation' or for news that they're being sued by a customer?

      My original post was off-the-cuff, but I'll stand by it, even if it does mean another round of moderator smack-down. This is one of those road-to-hell / good-intentions things. Worse, the commission/judge used buzz-phrases that made them sound like a bad web-advertising seminar from '98, they seem oblivious to international issues, they don't seem aware of the high cost of content maintenance, etc. Meanwhile, sensible web marketing advice like datestamp or expiration notices never got mentioned and they're making legal precedents that are easily abused.
  7. If the website was hosted outside of New Zealand. by xRobx · · Score: 3, Interesting

    Well I looked around the article but couldn't locate any information whether the site was hosted inside of New Zealand or outside, but I would imagine if it was hosted outside of New Zealand that they would have no right to go after the company for what their website contained, since it would not be on their soil.

  8. Re:Scary by Alpha_Traveller · · Score: 3, Interesting

    I hope this does happen in the USA, but only to companies.

    A) Too many companies leave false, misleading information.
    B) Too many companies still believe a Web site is something you can build and leave alone, or revisit only once a year.
    C) It'll keep large companies from hiring part-time Webmasters, and encourage more full time hires to conduct regular Web site updates.

    Hmmm... okay, 2 out of 3 wouldn't be bad...

    --
    "Love is like pi - natural, irrational, and very important." (Lisa Hoffman)
  9. Slashdot will be next by Magickcat · · Score: 4, Funny

    Slashdot had better watch out too then. It's putrid colour scheme and invalid html code are even more outdated.

    --

    Si tacuisses philosophus mansisses. If you had kept quiet, you would have remained a philosopher.

  10. This sends a good message by nodehopper · · Score: 5, Insightful

    This goes back to the days of "Bait and Switch" advertising in newspapers back in the 70's. Certainly, if the restaurant posted prices, then they do have a legitimate responsibility to keep that sort of "Time Sensitive" information up to date.

    "The complaining customer had notified both the restaurant and the Restaurant Association of New Zealand that the website menu was out of date and misleading, but the operator, despite knowing about the issue, had done nothing to correct the website."

    This sends a good message to commercial web site operators and e-commerce sites that they have to maintain current and correct information and can't just say "We didn't have time to update things.....so not our problem"

    I don't think I need to worry about my blog I set up one weekend a couple months ago and haven't touched since......do I ???
    --
    "We will remember not the words of our enemies, but the silence of our friends. " Dr. Martin Luther King, Jr.
  11. Re:Scary by luvirini · · Score: 3, Insightful

    Well, US is not known for the high level of consumer rights. But I do foresee similar cases in some country in the EU where they have reasonably effective consumer protection laws and authorities.

  12. Re:So What? by kd5ujz · · Score: 4, Informative
    Read the Article.

    Tony's Vineyard Restaurant in Henderson, Waitakere, found out the hard way that out of date menus are misrepresntations substantial enough to attract the attention of the Commerce Commission.

    The restaurant operator pleaded guilty on Thursday in the Waitakere District Court to breaching the Fair Trading Act in relation to website promotion of its menu and prices and was fined $3,000 plus $260 in court costs.

    According to the commission, the restaurant's website made various representations about the availability and price of certain meals on the menu over a six month period dating from a customer complaint.

    The commission said that many of the meals were not actually available for order at the restaurant, and others were not available at the listed price. In some circumstances, the website price varied between 17 and 36 per cent cheaper than the in-house menu.

    The complaining customer had notified both the restaurant and the Restaurant Association of New Zealand that the website menu was out of date and misleading, but the operator, despite knowing about the issue, had done nothing to correct the website.
    --
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  13. Re:If the website was hosted outside of New Zealan by Anonymous Coward · · Score: 4, Informative

    I think you missed the point.

    We are protected here in NZ, from false advertising which may draw us into a store, restaurant etc. expecting low priced goods or special bargains.

    The restaurant can host its website wherever it wants, it was still telling New Zealanders that it had specific items on its menu, which it no longer actually serves.

    p.s. last time I dined there the staff were rude and incompetent, and they deserve to be straightened out in any way possible.

  14. Re:Give the guy a break by tria · · Score: 3, Informative

    NZ has a law the Fair Trading Act 1986. Part of it is around consumer protection. Basically the part he has been fined under is a section that states business must advertise prices, product spec etc correctly. It doesn't matter if it was in print or online it's advertising. He was warned about it and did nothing, so he was fined. It's not about Big brother jumping in. He broke a law (that pre-dates common usage of the Internet) and he got caught. A number of companies a year get fined for this sort of action, the only reason this got much of a headline is that it was the 1st web-based advertising to be fined under the Act.

  15. Offtopic... by rathehun · · Score: 3, Funny

    In other news, hordes of dissapointed Slashdotters find that they can't /. the servers because there is no direct link.

  16. Re:Scary by drsquare · · Score: 4, Insightful

    It doesn't matter how 'stupid' or 'naive' the customers are. False advertising is false advertising. It amuses me how some people here think that otherwise illegal activities are suddenly fine if they're done using a computer.

    If as a business owner you don't like it, then the real solution, rather than to bitch and moan about those evil trade laws, is to advertise real information rather than false information. I mean, I can't think that any business anywhere has any excuse for knowingly advertising false information.

  17. Let's screw all the mom and pop businesses by D.+Book · · Score: 3, Insightful

    This sounds like it has the potential to be a great money spinner for Slashdot users with a litigious streak and zero sympathy for the non-computer/Internet literate.

    There are thousands of "mom and pop" businesses out there who paid a webmaster to make them a site as a one-off after being bombarded with the message that their business will go under if they don't join the 21st century and get an Internet presence. Once their contract with the webmaster expires, these sites often sit dormant for years. The owners of these businesses are typically working their asses off on the fundamentals to stay afloat, and it's probable that many barely recall the fact that they have a (rather pointless) Internet presence, let alone know how to update the site, or have the spare cash to hire a webmaster just to update a few details.

    So here's what we do. We seek these sites out, send an e-mail to their long since unmonitered account complaining that we were misled because the site's details are not up-to-date, and sue the pants off them when there is no response. And we don't have to feel the least bit bad about our nuisance lawsuits tying up the overburdened court system, because after all, these greedy small businesses maliciously attempted to deceive people, and we're just doing our bit to eliminate this evil from the world.

  18. Ok, try this hypothetical... by Cap'n+Crax · · Score: 4, Insightful

    (Say) I own a restaurant. I've been in restaurant business for 28 years, but just recently this young man approached me about a "web-site" thing. I don't know diddly-squat about computers and such, but it's cheap. I pay him $500 and sets up a web-site for me. All is wonderful...

    Later, I get notice that my web-site thing is "wrong" but I can no longer reach the guy that made it? What do I do??????

    [I in fact know people who have web sites set up for their business by short-lived companies. The web sites often live on, longer than their creators. The "owners" who paid to have them created may not know HOW to change them.]

    --
    PK: 09F911029D74E35BD84156C5635688C0
    1. Re:Ok, try this hypothetical... by danila · · Score: 3, Insightful

      How is it different from me paying a newspaper to print my ads promoting some discounted special offers, then raising the prices back and refusing to do anything about newspaper ads, because I forget which newspaper it was, don't remember the name of my advertising agency, lost their telephone number, the dog ate my homework, etc.

      It's not different, just because it's online. You fail to update your website, it's your fault, now pay a fine AND fix the problem.

      --
      Future Wiki -- If you don't think about the future, you cannot have one.
  19. I got a good deal on a digital camera that way... by nettdata · · Score: 3, Interesting

    I went to a local Vancouver camera shop's web site, and looked into pricing for a Sigma SD10. Found that they had a great deal on for the camera body, 2 lenses (wide angle and zoom), case, and really nice flash.

    I went down and tried to buy the camera, but was quoted a HUGELY different price for it. I asked the guy to go to their website and tell me what it says, after which the clerk said someone made a mistake on the data input... turns out the price was only for the base, not including the 2 lenses and the flash.

    As a result, the clerk called the owner/boss, who asked them if the lower price was actually on the site, and had a detailed description of what was included in that price, and when it was validated, he said "well, give that stuff to him at that price... and CHANGE THE WEBSITE. " The site was changed while I was still in the store paying for my camera.

    So, at the end of the day, I saved over $1,500 due to their screwup. I kind of felt bad about it, and ended up buying more stuff than I would have (huge amounts of ram, rechargeable batteries, tripod, etc), but it was nice to see the guy live up to his on-line marketing.

    --



    $0.02 (CDN)
  20. Hopefully WalMart is next. by stuartkahler · · Score: 4, Interesting

    In larger markets, WalMart has their in-store pricing match their online pricing because they're undercutting local stores online and b&m. However, in rural areas where there's no Best Buy, CC or whatever to compete with, they charge the regular price in-store. If you ask the customer service people, they refuse to price match their own website advertised prices. You can go online to order it, but you can't get it in the store.

    Example: Recently, some new DVD came out that would normally run at least $19.99. Best Buy and others were selling it at $15.99 to bring in customers. Walmart was selling it for $14.88 online and in stores near Best Buy. In Walmarts in the middle of nowhere, the price was the full $19.99. No price matching. I skipped going to Best Buy to pick it up because walmart.com said I could get it at Walmart for $14.88. By the time I was near a Best Buy again, the sale was over.

    It's not even a case of old or mistyped pricing. They're actively selling at the price, just not in certain areas where they can get away with jamming up the customer. Most other places that charge less online will at least give you the lower price in the store if you ask.

  21. False advertising? by AussiePenguin · · Score: 3, Insightful

    Nothing annoys me more than all the web sites out there that are out of date. However, if it's clearly out of date then is that really false advertising? Perhaps I just have a sense of what is out of date (well some of these web sites will have shocking 10 year old looking HTML so I'll disregard the information within seconds). Though if the web site owner were place a disclaimer saying "Prices current as of ", I don't see why they'd be liable 2 years later when they've forgotten to update prices. In any case, it probably makes sense for businesses to date any prices they publish, even in fine print. I'm guessing that the web site in question didn't do this.

    What really annoys me more though is computer retailers who advertise online prices that are discounted to compensate for postage but when you walk into their store the prices are completely different. Perhaps I ought to tell 'em next time I notice that they're probably breaking fair trading laws and follow it up with the ACCC if they don't honour their prices.

    --

    Jeremy
    Melbourne, Australia
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  22. I smell astroturf by acb · · Score: 3, Interesting

    This reminds me of the stories about ridiculous lawsuits (i.e., people suing toaster manufacturers for millions, and winning, because their toaster didn't have a sticker warning them not to use it in the bath), many of which are said to be planted by lobby groups pushing for product-liability laws to be pulled back, making it harder for consumers to sue.

    Similarly, I wonder whether the distortion in this story (turning false advertising into outrageous government interference in personal web publishing) has an agenda behind it. Perhaps someone wants to weaken New Zealand's truth-in-advertising laws?

  23. "Prices valid through March 31, 2005" by davidwr · · Score: 3, Insightful

    Put an prominent expiration date on all your web sites and you won't have this problem.

    --
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