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
Auckland Academy of Learning Limited Fair Trading Act 10, 13(e), 36L(3) Auckland Academy of Learning Limited was fined $351,000 after pleading guilty to 9 representative charges under the Fair Trading Act 1986 relating to misrepresenting the performance characteristics, uses or benefits and the need for and suitability for purpose of the CAMI program. The company also plead guilty to 2 representative charges of failing to give consumers oral notice of the rights to cancel and uninvited direct sale agreement. Judgment 2017
Tower Insurance Limited Fair Trading Act 13(g) Tower Insurance Limited overcharged insurance premiums to some of its customers between July 2003 and September 2016 due to incorrectly calculated multi-policy discounts. The Commission’s view was that in doing so, Tower had likely breached section 13(g) of the Fair Trading Act 1986 by making false representations to customers about the amount they were required to pay for insurance. Tower entered into a settlement agreement with the Commission and has agreed to refund affected customers and pay an amount to Citizens Advice Bureau. Out of court settlement 2017
Fujitsu General New Zealand Limited Fair Trading Act 12A Fujitsu General New Zealand Limited (Fujitsu) was fined $310,000 after pleading guilty to seven charges under the Fair Trading Act for making unsubstantiated and misleading claims about the energy efficiency and performance of some of its heat pumps. Judgment 2017
Melric International Limited Fair Trading Act 40(1) Melric International Limited has been warned for likely committing an offence under section 40(1) of the Fair Trading Act 1986 in that, contrary to section 31(5) of the Act, it supplied goods that did not fully comply with the Unsafe Goods (Hot Water Bottles) Permanent Prohibition Notice 2016. Warning letter 2017
Seymour Distributing Ltd Fair Trading Act 40(1) Seymour Distributing Ltd has been warned for likely committing an offence under section 40(1) of the Fair Trading Act 1986 in that, contrary to section 31(5) of the Act, it supplied goods that did not fully comply with the Unsafe Goods (Hot Water Bottles) Permanent Prohibition Notice 2016 (Notice). Warning letter 2017
Veloce Vehicles Fair Trading Act 28(1) The Commission has reasonable grounds to believe that Daniel Cain (trading as Veloce Vehicles) breached section 28(1) 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. Infringement – paid 2017
Kiwi Personal Finance Limited (KPFL) CCCF Act 83G, 83ZN

Fair Trading Act 13(j)
Kiwi Personal Finance Limited (KPFL) has been warned for likely breaching section 13(i) of the Fair Trading Act for representations made in its contracts and repossession warning notices about its ability to repossess under ‘all present and after acquired property’ (APAAP) clauses. KPFL were also warned for likely breaching section 83G of the Credit Contracts and Consumer Finance Act as repossession warning notices were missing key information that is required under Schedule 3A. KPFL were also warned for possibly breaching section 13(i) of the Fair Trading Act and/or section 83ZN of the Credit Contracts and Consumer Finance Act for taking security interest over a “bedroom suite”. Warning letter 2017
Macful International Limited CCCF Act 17, 32 Macful International Limited trading under the name Ezi Truck was fined $126,000 after pleading guilty to 16 charges under the Credit Contracts and Consumer Finance Act 2003 relating to failing to provide key information to borrowers before they entered into consumer credit contracts and failing to provide information clearly and concisely and knowingly failing to be registered on the financial service providers register and failing to become a member of a dispute resolutions scheme. Judgment 2017
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
ANZ Cars Limited Fair Trading Act 28(1) The Commission has reasonable grounds to believe that ANZ Cars Limited breached section 28(1) 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. Infringement – paid 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
Zee Shop Limited CCCF Act 17, 32 Zee Shop Limited was fined $108,000 after pleading guilty to 7 charges of failing to disclose key information to borrowers before they entered into consumer credit contracts and failing to express information clearly and concisely. Judgment 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
Online Limited Realty Commerce Act 27 via s 30 Online Realty Limited was ordered to pay a penalty of $1.05m following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me. Online operates in the Hamilton region under the Ray White brand. Judgment 2017
Sun City Motors Limited Fair Trading Act 28(1) The Commission issued 3 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
Rankers.co.nz Limited Fair Trading Act 11, 13(b) Rankers.co.nz Limited have been warned for likely breaching sections 11 and/or 13(b) of the Fair Trading Act by making representations that the information on Rankers’ website was independent, impartial and free from any bias. In the Commission’s view, Rankers applied their own bias, determining which campervan companies appeared on the main ranking table, by excluding companies that did not pay commissions for bookings. Warning letter 2017