The Commerce Commission has so far this financial year taken action against 40 businesses who it alleged were breaching the country of origin labelling regulations.

Commission Chairman Dr Alan Bollard said the Commission has taken three prosecutions to court, negotiated 7 settlements and issued 30 warnings.

In two of the court cases companies were fined $1,000 each, and the third is still before the court.

The settlements involved companies changing country of origin labels to ensure they were correct, and correctly labelling unlabelled goods.

Dr Bollard said Commission staff follow-up warnings and find that, in general, they work well and businesses change their behaviour to ensure they comply with the regulations. If warnings are ignored, then the Commission re-assesses the matter to decide what further action should be taken.

The regulations are made mandatory by the Fair Trading Act and require all clothing and footwear to have correct country of origin labels.

"The Apparel and Textile Federation is wrong in its statement that the Commission will not enforce the law," Dr Bollard said.

"I am happy with the surveillance carried out and enforcement action taken by the Commission in relation to these regulations.

"I note that the Federation states it plans to bring its own prosecutions against breaches it discovers. The Fair Trading Act allows anyone to take their own legal action and I welcome the Federation's decision, it will add further impetus to enforcement of this part of the law.

"Our investigations show that most breaches appear to occur through ignorance on the part of businesses, and they quickly correct their behaviour when the regulations are explained to them.

"However, major or repeated breaches do lead to court action."

The Commission also carries out education activities, visiting towns where it does not have an office, to meet and talk to business people. It also conducts seminars, and publishes free pamphlets and a newsletter.

"We use a successful mix of education, surveillance and enforcement to get compliance with the law," Dr Bollard said.

Media contact: Communications Officer Vincent Cholewa

Phone work (04) 498 0920, home (04) 479 1432

Note

The government financial year is July 1 to June 30.