Commission report raises issues about court actions
Published18 Sep 1997
Several issues affecting Commerce Commission court actions are among those raised in the Commission's annual report tabled in Parliament today.
In the report, Commission Chairman Dr Alan Bollard states that the Commission supports current attempts to reform court procedures and to reduce times and costs of trials. It also anticipates a trend to increasingly realistic penalty levels under the Commerce Act.
The Commission was pleased with the $500,000 Port Nelson penalty, the highest to date under the Commerce Act. However, it is disappointed that after 10 years of Commerce Act case law, the highest penalty is still only 10 percent of the maximum permitted.
"This is an area the Commission will continue to focus on," the report states.
Under the Fair Trading Act, there is concern about the impact of that Act's three year limitation period. Where a possible breach of the Act relates to long-term purchases or investments - for example housing, savings or insurance - the three year limitation period greatly reduces the protection available to consumers.
The Commission has passed its concerns onto the Ministry of Consumer Affairs which advises the Government on Fair Trading Act matters.
Fair Trading Act fines increased significantly during the year. At the start of the year the highest penalty for a single charge was $22,500. It increased to $50,000 with the conviction of Edge Computer, and $63,000 with that of Bond & Bond. The maximum under this Act is $100,000.
Overall, the Commission notes that at times the two Acts it enforces have been criticised by those who think they are too weak or ineffective, and also at the same time by those who think they give the Commission powers that are too strong and intrusive.
The Commission's view is that it has been through a successful year and the Acts have brought considerable gains for New Zealand consumers.
Copies of the Commission's annual report are available from reception at its Wellington office, level 7, Landcorp House, 101 Lambton Quay.
Media contact: Corporate Services Manager Geoff Thorn
