Nelson businesses to meet Commerce Commission and Ministry of Consumer Affairs

The Commerce Commission and Ministry of Consumer Affairs will be visiting Nelson on Monday March 23 to Wednesday March 25 to visit shops and businesses to discuss the Fair Trading and Consumer Guarantees Acts and other consumer protection issues.

In addition the Commission and Ministry are holding a seminar which all Nelson businesspeople are invited to attend. The seminar will be on Wednesday March 25 at 6pm

Commission Fair Trading Manager Rachel Leamy said she hopes there will be an excellent response to the seminar.

"We will be talking about two of the most important laws that affect businesses every day. After the seminar, there will be plenty of time for questions and informal discussion over finger food," Ms Leamy said.

"This is a great opportunity for business people to increase their knowledge of the law. Neither the Commission nor the Ministry has an office in Nelson, and it is more difficult for businesspeople to make contact with us, so we are coming to them.

"It is an education exercise. We want people to understand how to operate within the law to protect themselves and their customers."

Ministry Legal Advisor Ani Waaka said: "We trust that traders will take advantage of the visit and the seminar to clarify any areas of uncertainty in respect of the Consumer Guarantees Act.

"We know that a number of misconceptions have arisen about the Act since it was introduced in 1994. The seminar will provide the opportunity for traders to check their own knowledge of the Act and have any questions answered.

"Consumer Affairs staff taking part in the visit will also be available to provide information to business people on other areas of consumer law such as layby sales and hire purchase, and meeting with a number of Nelson community groups."

On this visit Commission staff will be focusing on motor vehicle and appliance dealers, cellphone, computer and furniture retailers, pharmacies. Sellers of goods covered by the three product safety standards (toys, bicycles and children's nightclothes).

These are areas that the Commission has identified as raising specific compliance issues

Seminar details

Venue: Tahuna Beach Conference Centre

Date: March 25

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 2351, Wellington, Attention Olive Barry; phone (04) 498 0910, fax (04) 471 0771 (door sales will be available on the night)

Speakers: Commerce Commission Fair Trading Manager Rachel Leamy

Ministry of Consumer Affairs Legal Advisor Ani Waaka

Commerce Commission staff in Nelson March 23-25

Fair Trading Manager Rachel Leamy, Projects Officer Estelle Le Lievre, Enquiries Officer Leonie Boyd and Investigator Graeme Wood.

Ministry of Consumer Affairs staff in Nelson March 23-25

Legal Advisors Lesa Kalapu and Ani Waaka, and Project Advisor Ngapera Hoerara.

Media contacts

Commerce Commission

• Project Advisor Ngapera Hoerara Nelson 021 613 477, Wellington (04) 470 2306
• Communications Advisor Judy Cochrane work (04) 470 2302, home (04) 233 8175

Background

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

• a retail chain was fined $63,000 for making false claims about recommended retail prices, free interest terms and price savings
• a computer firm was fined $50,000 for making false claims about the memory of computers and computer components
• a car dealer was fined $50,000 for calling used cars new
• a retailer was fined $25,000 for three charges of selling unsafe bicycles
• a lawyer and his company were fined $20,000 for misleading land buyers
• a bank was fined $16,000 for using misleading mortgage ads
• the Court of Appeal defined when so called "free" promotions are misleading

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.

Consumer Information Service

Provides assistance to target consumers through the Consumer Advocacy Team and works to empower target consumers by running consumer education programmes using a variety of mediums. Provides support, assistance and training to community agencies such as Citizens' Advice Bureaux, Budget Advice Services and some community Law Centres. Works with business on areas of compliance with consumer law. Develops written resources for consumers, traders, business, schools, and TOPs programmes.

NB: The Consumer Information Service targets low income, Maori and Pacific Island consumers. Businesses of particular interest to the Service are those who have a high customer base of our target consumers.

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.