Commission lists illegal signs and questionable business practices
Published27 May 1995
The Commerce Commission has published lists of common business signs that break the law, and common terms of trade, contracts, and business practices that risk breaking the law.
The Commission's Fair Trading Manager, Keith Manch, said the four pages of lists are included in a booklet aimed at business people. The booklet, Refunds, Returns, Guarantees and Warranties, explains the links between the Fair Trading Act and the Consumer Guarantees Act.
Mr Manch said the booklet was published because the Commission is concerned that many business people do not have a good understanding of this important area of consumer protection law.
"We see it as vital that business people are aware of the law so that they can meet their obligations," he said.
The two Acts work together. The Fair Trading Act prohibits false or misleading claims and generally applies before a sale is made.
The Consumer Guarantees Act sets minimum guarantees and rights to have problems fixed. It generally applies after a sale is made.
Making a false or misleading claim about the guarantees and rights made compulsory by the Consumer Guarantees Act is a breach of the Fair Trading Act. This happens if a business tries to opt out of the guarantees or rights it must provide or if it describes them as an extra service it is choosing to provide, or even to sell, to its customers.
Mr Manch said that so far the Commission has responded to what it has seen as breaches of the Fair Trading Act with about 25 warnings and signed settlements.
"Most of the businesses we have taken this action against have responded well," he said. "But if they ignore us or if there is a serious breach we can take court action."
Under the Fair Trading Act anyone - customers, competitors, the Commission and any other parties - can take legal action. Courts can fine businesses up to $100,000 as well as imposing a wide range of orders and injunctions.
Under the Consumer guarantees Act customers can take legal action and courts and the Disputes Tribunal can order businesses to pay refunds, damages and costs.
The free booklet is being publicised by the Retail and Wholesale Merchants Association, Manufacturers Federation and Employers Associations, and is available from Commission offices, Citizens' Advice Bureaux, Link Centres and Ministry of Consumer Affairs consumer advice offices.
Media contact:Keith Manch, Manager Fair Trading
Phone work (04) 498 0908 or (09) 377 3094, home (04) 479 7105
