Commerce Commission and Ministry of Consumer Affairs to meet Invercargill businesses

What does the law say about interest free deals? Why is a "no refunds" sign illegal? What rights does a customer have to redress? How does a false representation come about?

These are a few of the types of questions the Commerce Commission and Ministry of Consumer Affairs expect to answer on a visit to Invercargill businesses next week.

"This is a friendly, informal visit," said Commission General Manager John Feil. "We are not coming to investigate anyone or catch them out. We aim to help traders understand their responsibilities under the law."

The Commission and Ministry will visit shops and business from March 2-4 to discuss the Fair Trading and Consumer Guarantees Acts. They are particularly interested in motor vehicle dealers; appliance, cellphone, furniture and computer retailers; pharmacies; sellers of toys, bicycles and children's night clothes; and booksellers.

These are areas that the Commission has identified as raising specific compliance issues nation-wide. Computer retailers and booksellers are being concentrated on as an area where a large number of problems are occurring.

Ministry staff will include specialists in product safety and weights and measures legislation.

All Invercargill business people are invited to a seminar on Wednesday March 4 at 6pm. This will give retailers an opportunity to explore issues such as bait advertising, refunds, consumers' rights to redress, layby and hire purchase regulations and what to do when a customer changes their mind.

"Similar visits to other towns where we do not have offices have seen impressive turn outs at seminars," Mr Feil said. "We hope Invercargill business people will be just as committed to understanding how to operate within the law to protect both themselves and their customers."

Seminar details

Venue: Kelvin Hotel

Date: March 4

Time: 6pm - 8pm (doors open 5.30pm)

Cost: $15 (inc. GST) per head includes finger food (no charge for reporters)

Cheques to Commerce Commission, PO Box 25-193, Christchurch, Attention Frances Miller (door sales will be available on the night)

Speakers: Commerce Commission General Manager John Feil

Ministry of Consumer Affairs Advisor Jennifer Blaylock

Commission Christchurch office Chief Investigator Stuart Wallace to chair seminar

Commerce Commission staff in Invercargill March 2-4

General Manager John Feil, Chief Investigator Stuart Wallace and Investigator Simon O'Callaghan.

Ministry of Consumer Affairs staff in Invercargill March 2-4

Advisors Jennifer Blaylock, Indira Sirisena and Mary Richardson; and Trading Standards Officer Brian Waltham.

Media contacts

Ministry of Consumer Affairs

• Advisor Jennifer Blaylock, Invercargill March 2-4, 021 613 479

  Wellington office (04) 474 2750

• Communications Advisor Judy Cochrane, work (04) 470 2302, home (04) 233 8175

Commerce Commission

The Commerce Commission exists to bring about awareness and acceptance of, and compliance with, the Commerce and Fair Trading Acts.

Fair Trading Act

The Fair Trading Act prohibits false or misleading representations, and gives the Minister of Consumer Affairs the power to make product safety and consumer information standards mandatory. It generally applies before a sale is made.

There are three product safety standards made mandatory by the Fair Trading Act. They are for:

• bicycles
• fire safety of children's night clothes
• toys for children aged up to three years (to prevent choking)

There are three consumer information standards made compulsory by the Act. They are:

• country of origin labelling for clothing and footwear
• fibre content of textile goods
• care labelling of textile goods

Recent action by the Commission in Invercargill includes:

• Prosecution - Mike Hughes Limited trading as "The Pink Bike Shop". Convicted on 11/12/92 for making false claims about the make of a racing cycle and that a racing bike was new.

• Prosecution June 1995 - Macaulay Ford, fined $50,000 for leasing a used car while claiming it was new and selling a new car with a used transmission.

• Settlement - Budget Rent a Car Invercargill branch. Made false claims about the mileage on rental vehicles that had their odometers disconnected while being relocated back to the Invercargill branch.

• Settlement - Selectrix Invercargill. Made misleading claims about price savings by comparing higher "was" prices with lower "now" prices. The "was" prices were recommended retail prices (rrp) that had not been charged by Selectrix. In another case, the conviction of Bond and Bond, the courts said that it is misleading and a breach of the Fair Trading Act to compare a price to a rrp unless the advertiser had charged the rrp.

• Settlement - Rice Refrigeration Ltd, trading as Rices. Rices admitted that it breached the Fair trading Act by making misleading claims about prices. It compared its prices to rrp's and claimed the difference was a saving to customers. Rices had never charged the rrp.

Education

The Commission puts considerable effort into educating business people about the Fair Trading Act. As well as media publicity, it holds seminars, visits areas where it has no office, provides speakers for conferences and works in particular with nation-wide traders. It also publishes two newsletters and a wide range of free pamphlets about the Acts it enforces.

Ministry of Consumer Affairs

The Ministry of Consumer Affairs exists to work with consumers and business to promote a fair and informed marketplace.

Trading Standards Service

Works to ensure that goods are exchanged on the basis of recognised, informed and accurate weight or measure. Administers and enforces the Weights and Measures Act 1987 and Regulations. Investigates complaints and upholds consumers' rights to safe products and services under the Fair Trading Act 1986. Provides policy advice to Government on weights and measures for use in trade; and about safety issues with consumer goods (with a particular focus on child products). Develops information resources for consumers and traders on weights and measures and product safety.

Recent work has involved prosecutions for underweight firewood and frozen seafood; helping to develop a code of conduct for electricity metering; and investigations into prams and strollers and cots and portable cots following the deaths of two babies.

Consumer Policy

Advises the Government on laws, practices and policies that affect consumers. Administers the Consumer Guarantees Act, Fair Trading Act, Hire Purchase Act, Layby Sales Act, Door to Door Sales Act, Unsolicited Goods and Services Act.

Recent work has involved publishing a discussion paper 'Electronic Commerce and The New Zealand Consumer' which examined technology trends and issues and their effects on consumers; releasing the 'Review of Contracts, Metering and Disputes Procedures for Domestic Electricity Customers' report and undertook follow-up work with the industry in developing codes of practice for metering and contracts; publishing policy papers on 'Market Self-Regulation and Codes of Practice and Mandatory and Voluntary Product Standards' and a framework, 'Assessing Costs and Benefits in Consumer Policy Development'; advising (with the Ministry of Justice) the Parliamentary Select Committee considering the Credit (Repossession) Bill; and participating as a member of the committee that reviewed the Insurance and Savings Ombudsman scheme.

The Consumer Guarantees Act.

The Act sets guarantees that consumer goods and services must meet. Consumer goods are those normally acquired for personal, domestic or household use. It also sets out the remedies available when the guarantees are not met. The Act will generally apply after a sale is made.