The Commerce Commission said today that, as well as continuing its general enforcement of the Commerce and Fair Trading Acts, this year it will also focus on what it has identified as key areas.

Commission Chairman Peter Allport said that under the Commerce Act the Commission has added local authorities to its previously identified key areas of telecommunications, electricity, gas and health sectors.

It also aims to have major Commerce Act court actions against oil companies Caltex, Mobil and Shell; against the Ophthalmological Society and five individual ophthalmologists; and against Fletcher Challenge Limited, Fletcher Challenge Energy and the Electricity Corporation of New Zealand over the Kupe gas field come to trial this year.

Under the Fair Trading Act the motor vehicle industry, particularly car dealers, rental cars and the tyre trade, have been added to the areas to be focused on. Particular attention will continue to be paid to food and nutritional claims, major traders, product safety standards, computers, small print, pyramid selling and guarantees and remedies.

Significant Fair Trading Act court actions in progress include a case before the Court of Appeal to determine when compensation orders can be made, and District Court cases involving pyramid selling, the travel industry and the car industry.

Important governance issues for the Commission will be the appointments of a new Chairman and Deputy Chairman. Mr Allport has said that he will stand down in March to concentrate on his personal business interests. The Commission does not currently have a Deputy Chairman. Appointments to the Commission are made by the Governor General on the recommendation of the Minister of Enterprise and Commerce.

Mr Allport said that local authorities have been added to the list of key areas for the Commission because they own a large proportion of the country's assets and their trading activities have considerable impact on the economy. Historically they have had a regulatory role, and today are not always aware of what the law requires of them in a competitive environment.

Telecommunications, electricity and gas are key areas because they are all major industries that include natural monopolies and without which other industries could not function. The Commission has additional roles and responsibilities in the electricity industry now, since the passing of the Electricity Industry Reform Act last year.

The health sector is a $6 billion a year industry that has been subject to the Commerce Act since 1993. It is also a sector in rapid change and one that needs better understanding of the Act.

The motor vehicle industry will get particular attention under the Fair Trading Act because the Commission continues to receive many complaints about it and has taken much enforcement action against a broad cross section of the industry.

The Motor Vehicle Dealers' Institute is the first organisation to go onto the Commission's new initiative, the trade association programme. Under the programme the Commission will establish formal links with trade associations to help educate their members about the Fair Trading Act.

Food promotion is another multi-billion dollar industry and food is one of the most basic necessities - everyone must eat. A promoter can make huge gains over competitors by using false or misleading claims and can also cause serious harm to consumers and, because of the size and necessity of the market, to the economy.

The Commission's highly successful major trader programme will continue. A relatively small number of large traders account for most of the retail business and much of the advertising in New Zealand. The Commission deliberately puts a lot of resources into working with these traders to help them comply with the law, because this has wide-ranging benefit to almost all consumers and the economy as a whole.

Three product safety standards are made mandatory by the Fair Trading Act, those for toys, bicycles and children's night clothes. They are a particular concern to the Commission because breaches can cause serious injury and deaths. Unfortunately, last year the Commission repeatedly had to take enforcement action against unsafe toys.

Computer hardware and software retailing is raising issues under the Fair Trading Act because of the complex technology involved. Most consumers must rely on the manufacturers' and retailers' claims and cannot easily test the claims for themselves.

Use of small print that substantially alters the message of the bold print and other main features of advertising, and small print that is false or misleading in itself, are on-going problems.

Likewise, false or misleading claims that attempt to limit consumers' rights to guarantees and remedies that they must legally be given are also a continuing problem.

Pyramid selling schemes, too, are common. There is no such thing as a "legal" pyramid scheme in New Zealand. The Fair Trading Act prohibits all pyramid selling.

"The Commission has taken considerable enforcement action involving product safety standards, computer retailers, small print, claims about guarantees and remedies and pyramid schemes," Mr Allport said. "We will continue to do so until compliance improves."