Enforcement Response Register

This register contains warnings, settlements and judgments since 1 January 2014 under the Fair Trading Act 1986, the Commerce Act 1986, and the Credit Contracts and Consumer Finance Act 2003.

It does not contain all enforcement responses before this date or enforcement responses withheld under the Official Information Act 1982.

Please note that judgments will be published as we receive them from the Court. This can sometimes be several months after the relevant hearing.

Selected judgments

Enforcement Response Guidelines

Our guidelines describe how the Commission enforces New Zealand's fair trading, competition and credit contract laws.

Parties Act/Section Description Resolution Year
Avanti Finance Limited CCCF Act 51, 54 Alleged that creditor was charging debtors an unreasonable estimate of creditor's loss upon full prepayment of their consumer credit contracts, and made misleading representations as to the characteristics of the formula used to calculate the estimate of loss. Creditor found not guilty in District Court in 2009. Commission appeal to High Court dismissed. Judgment 2010
Sunrise Motor Group Limited and Surya Kumar Fair Trading Act 27 Trader advertised vehicle for sale on Trade Me and at car yard that was imported damaged and this information was not disclosed on CIN. Judgment 2010
Shell New Zealand Limited Fair Trading Act 10, 13(e) Alleged misleading representation re fuel economy formula Judgment – all charges dismissed 2010
Progressive Enterprises Limited Fair Trading Act 17(a) Alleged that offer made of prize with no intention to supply Judgment – Court of Appeal dismissed charges 2010
TMG Asia Pacific Pty Limited Fair Trading Act 11, 13(b), 13(g) Failure to disclose terms and conditions of text to win competition, misleading consumers. Fined $125,000, court costs $1040. Judgment 2010
Mainfeeds Limited formerly t/a PCL Industries Limited Fair Trading Act 10, 13(a) Trader produced calf feed that did not comply with nutritional specifications on packaging. Fined $125,000, court costs of $1040. Judgment 2010
Tristram European Limited Fair Trading Act 13(g) Misleading representations about the price of motor vehicles particularly that vehicles could be purchased on 0% interest when 0% interest terms were not available on a lower negotiated price. Alleged misrepresentation about the price of vehicles, particularly that the amount of establishment fees had not been disclosed in advertising. Fined $18,000, court costs $650, solicitor costs $750. Judgment 2010
New Zealand Natural Care Products Limited Fair Trading Act 13(j) Misrepresentation as to country of origin of product. Fined $15,000, court costs $260. Judgment 2010
Larry Roger Binns Fair Trading Act 11, 13(a) Misrepresentation of quality of timber. Fined $15,000, court costs $130. Judgment 2010
Foundation Custodians Limited CCCF Act 54 Alleged that creditor is charging an unreasonable estimate of its loss upon full prepayment and is in fact charging a different formula to that disclosed Settlement 2010
Dolbak Finance Limited Fair Trading Act 13(i)

CCCF Act 17
Alleged breach of s13 Fair Trading Act (continued enforcement of contracts where full disclosure has not been made) and ss17 and/or 32 of the CCCF Act. Litigation resolved. Guilty pleas to representative charges and sentencing. Convictions entered on 2 charges (one each act) and fined $1000 on each charge. Judgment 2010
Budget Loans Limited Fair Trading Act 13(i) Misleading representations that creditor has the right to charge undisclosed credit fees, to charge default interest and fees after the sale of repossessed secured items, which is prohibited under the Credit (Repossession) Act, that it has the right to attach its security interest to after-acquired consumer goods without specific appropriation despite section 44 of the Personal Property Securities Act. Creditor fined $30,750. The creditor reversed or refunded around $500,000 in overcharged interest and fees. During the Commission's investigation Budget Loans also voluntarily reversed or refunded an additional $571,000 to its debtors in relation to credit fees that were not the subject of the current charges. Judgment 2010
ANZ National Bank Limited (ANZN) and ING (NZ) Limited (ING) Fair Trading Act 10, 13(a), 13(b), 13(e) Misleading representations about the degree of risk when when promoting and marketing the ING Diversified Yield Fund (DYF) and the ING Regular Income Fund (RIF). Questions and answers published on 21 July 2010 are available at Fair Trading/Enforcement Outcomes Settlement, $45 million in refunds to affected investors 2010
Telecom New Zealand Limited Fair Trading Act 11 Misleading advertising statements in relation to its broadband at dial-up prices promotion, particularly the disclosure of the 12 month contract term and data allowance associated with the basic broadband plan. Settlement 2010
Methven Limited Fair Trading Act 13(e) Misleading advertising statements over conventional shower water flow being 20L per minute, when majority of NZ showers have a water flow of between 6-10ml per minute. Judgment 2010
Kenneth James Ross Fair Trading Act 13(i) Alleged that some aircraft and performers stated in advertising will not be apearing at the airshow. Criminal charges also laid by Police. Judgment 2010
Southern Cross Finance Limited CCCF Act 41, 42 In a settlement with the Commerce Commission, Southern Cross Finance Limited has admitted charging unreasonable loan establishment fees and will refund just under $700,000 to 250 customers it overcharged between July 2006 and October 2009. Settlement 2010
Interchange: Visa International Service Association and Visa Worldwide Pte Limited, MasterCard International Incorporated , ANZ National Bank Limited, ASB Bank Limited, Bank of New Zealand, Kiwibank Limited and New Zealand Post Limited, TSB Bank Limited, The Warehouse Financial Services Limited, Westpac New Zealand Limited Commerce Act 27, 30 Alleged agreements between banks and card schemes to set the amount of the interchange fee, provide the rules of operation of card schemes, limiting entry into the card services market and other related provisions, thereby controlling the level of the merchant service fee paid by retailers Settlement 2010
Telecom Corporation of NZ Limited and Xtra Limited Fair Trading Act 13(g) Alleged misleading consumers by wrongly billing over 130,000 new broadband customers Settlement, $9.5 million in refunds paid to affected customers 2010
A) Invercargill Property Management Limited (IPM), B) Newfoundland Limited, C) Southern Housing Limited, D) CMA Property Investments Limited Fair Trading Act 14(1)(b) Alleged breaches of section 14(1)(b) by IPM by making representation that were false or misleading as to the nature of the interest that the IPM scheme occupiers acquire in the properties. A) Fined $38,500 and $25,000 reparation B) Fined $13,500 and $10,955 reparation C) Fined $10,500 and $5,000 reparation D) Fined $40,000 and $42,290 reparation Judgment 2010