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
AFT Pharmaceuticals Limited Fair Trading Act 10, 13(e) AFT Pharmaceuticals Limited has been warned for likely breaching section 10 and 13(e) of the Fair Trading Act for representations made in their advertisements and on its packaging of the Maxiclear range that gave the impression that each of the four products were specifically formulated to treat particular symptoms when this was not the case. Warning letter 2017
GlaxoSmithKline Consumer Health Care New Zealand Limited Fair Trading Act 10, 13(e) GlaxoSmithKline Consumer Health Care New Zealand Limited has been warned for likely breaching section 10 and 13(e) of the Fair Trading Act for misrepresentation as to the nature or characteristics of goods or their suitability for a purpose relating to Voltaren and Panadol products. Warning letter 2017
Two Degrees New Zealand Limited Fair Trading Act 13(g) Two Degrees New Zealand Limited has been warned for likely breaching section 13(g) of the Fair Trading Act 1986 for advertisement of a broadband offer where essential pricing information related to the purchase and delivery of a modem was either inadequately disclosed, or not disclosed at all. Warning letter 2017
Vodafone New Zealand Limited Fair Trading Act 13(g) Vodafone New Zealand Limited has been warned for likely breaching section 13(g) of the Fair Trading Act 1986 for representations in relation to Sky Sport / SoHo Bundle that was likely to mislead consumers in relation to the full price payable, in that they inadequately disclosed the need for Basic SKY, which was an additional $49.91 per month. Warning letter 2017
Spark New Zealand Trading Limited Fair Trading Act 11, 12A Spark New Zealand Trading Limited, in advertising relating to Skinny, has been warned for likely breaching sections 11 and 12A of the Fair Trading Act 1986 by representing that Vodafone's 2G network was to close imminently, when it was not. Warning letter 2017
MyRepublic Limited Fair Trading Act 11, 13(b), 13(i) MyRepublic Limited has been warned for likely breaching sections 11 and 13(b) of the Fair Trading Act 1986 for their 1Gbps Upgrade advertisements which were likely to mislead consumers about the type, standard or quality of the service being offered as the 1Gbps service was not available at the time to advertisements were displayed. MyRepublic Limited have also been warned for likely breaching section 13(b) of the Act by making representations that consumers would experience "No Peak Time Lag" and "never experience peak time latency or speed issues". Warning letter 2017
Mitre 10 (New Zealand) Limited Fair Trading Act 10, 13(g) Mitre 10 (New Zealand) Limited was warned for breaching section 10 and 13(g) of the Fair Trading Act 1986 for making false representations on in-store signage claiming that Mitre 10's prices were "lowest" when it was unlikely that Mitre 10 had the lowest prices on all of the products offered for sale in stores at the time the representations we being made. Warning letter 2017
Sun City Motors Limited Fair Trading Act 28(1) The Commission issued 5 infringement notices as it had reasonable grounds to believe that Sun City Motors Limited breached section 28 of the Fair Trading Act by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. Infringement – referred to Ministry of Justice 2017
Best Buy Limited CCCF Act 17, 32 Best Buy Limited was fined $83,362.50 after pleading guilty to sixteen charges under the Credit Contracts and Consumer Finance Act 2003 relating to it failure to provide key information in its initial disclosure in breach of s17 and its failure to meet disclosure standards set out under s32. Judgment 2017
Budget Warehouse Limited Fair Trading Act 13(i)

CCCF Act 17
Budget Warehouse Limited was fined $100,000 after pleading guilty to breaching s17 of the CCCFA for failing to disclose all of the information required by that section; and of s13(i) of the FTA for making false or misleading representations concerning the existence or effect of any guarantee or right. Judgment 2017
Acute Finance Limited CCCF Act 41 Acute Finance Limited was fined $22,000 after pleading guilty to four charges of breaching s41 of the Credit Contracts and Consumer Finance Act 2003 by charging a fee for its repayment waiver that exceeded its reasonable costs. Judgment 2017
Kowhai Montessori Pre-School Limited and Rebecca Jayne Brindle Fair Trading Act 13(i), 40(1) Kowhai Montessori Pre-school Limited (Kowhai) was ordered to pay a fine of $254,099.10 and reparation in the amount of $11,400.90 following guilty pleas that it had breached section 13(i) of the Fair Trading Act by making false representations about the amount of funding it was receiving under the Government’s early childhood education (ECE) scheme. A former manager and director of the company, Mrs Brindle, has entered into Enforceable Undertakings to pay Kowhai’s fine and reparation order if the company fails to do so on time. Judgment and Enforceable undertakings 2017
Topline International and Jeffrey Bernard Cook Fair Trading Act 10 Both Topline International and Jeffrey Bernard Cook pleaded guilty to breaches of section 10 of the Fair Trading Act for marketing Topline’s flagship product, NatureBee potentiated Bee Pollen (NatureBee), on the basis it was New Zealand made and/or sourced. The pollen in the product was in fact imported from China and the key step in the product’s transformation had also occurred in China. Topline was fined $405,000 and Mr Cook $121,500. Judgment 2017
MellyPop Lingerie Limited Fair Trading Act 13(i) MellyPop Lingerie Limited (trading as MellyPop) was warned for likely breaching section 13(i) of the Fair Trading Act 1986 by having a refund policy that misled consumers about their rights under the Consumer Guarantees Act 1993. Warning letter 2017
Ina Villamaria t/a IN37 Fair Trading Act 28 The Commission issued two infringement notices as it had reasonable grounds to believe that Ina Villamaria breached section 28 of the Fair Trading Act 1986 by failing to display that the person was in trade on an auction listing as required by section 28B of the Act. Infringement – paid 2017
Motor Auctions Limited t/a Autoauction Fair Trading Act 28 The Commission issued two infringement notices as it had reasonable grounds to believe that Motor Auctions Limited (trading as Autoauction) breached section 28 of the Fair Trading Act 1986 by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. The Commission also issued one infringement notice for failing to display that the company was in trade on an auction listing as required by section 28B of the Act. Infringement – paid 2017
Nelson Motor Cycle Centre (2014) Ltd t/a Partsgirl Fair Trading Act 28(1) The Commission has reasonable grounds to believe that Nelson Motor Cycle Centre (2014) Limited breached section 28 of the Fair Trading Act by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. Infringement - paid 2017
Nelson Environment Centre t/a Nelson Refuse and Recycle Centre Fair Trading Act 31(5)(b) Nelson Environment Centre (trading as Nelson Refuse and Recycle Centre) was warned for likely breaching section 31(5)(b) of the Fair Trading Act, in relation to offering to sell a chainsaw without a chain brake. Warning letter 2017
North Pacific Limited Fair Trading Act 30(1) North Pacific Limited was warned for breaching section 30(1) of the Fair Trading Act 1986 by supplying baby walkers that did not meet Product Safety Standards (Baby Walkers) Regulations 2001. Warning letter 2017
Budget Loans Limited and Evolution Finance Limited Fair Trading Act 13(e), 13(i) Budget Loans Limited and Evolution Finance Limited have been found guilty in the Auckland District Court on 106 charges under the Fair Trading Act 1986. The companies were found guilty of representations made to 18 borrowers while enforcing loan contracts. the Commission filed 125 charges against Budget Loans and Evolution Finance. The District Court ruled that 19 charges should be dismissed. On appeal the High Court has found that the companies have a case to answer on these charges and they have been remitted to the District Court for consideration. The High Court has also dismissed the companies appeal against its conviction on the other 106 charges. Judgment 2017