The Commerce Commission and Ministry of Consumer Affairs are inviting all New Plymouth businesses to a seminar about the Fair Trading Act and the Consumer Guarantees Act on Wednesday March 27.

Commission Fair Trading Manager Rachel Leamy said she hopes there will be an excellent response from business people.

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

As well as giving the seminar, Commission and Ministry staff will be in New Plymouth from Monday to Wednesday visiting shops and talking to owners and managers.

"The aim is to improve business people's knowledge of the law," Ms Leamy said. "Where there is no Commission or Ministry office in a town, it is more difficult for business people 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."

The Fair Trading Act is enforced by the Commission. It prohibits false or misleading representations and makes compulsory consumer information and product safety standards. It generally applies before a sale is made.

The Consumer Guarantees Act is administered by the Ministry and sets guarantees that goods or services must meet. It also provides remedies for failure to meet the guarantees. It generally applies after a sale is made.

Seminar details

March 27, 6pm - 8pm, Plymouth Hotel, Cr Courtenay and Leach Streets, New Plymouth

$12 (inc. GST) per head includes finger food (no charge for media)

Speakers: Commerce Commission Fair Trading Manager Rachel Leamy, Ministry of Consumer Affairs Senior Advisor Kim Morton

Commerce Commission staff in New Plymouth March 25-27

Chief Investigator Ross McPherson, Estelle Le Lievre, Rachel Prosser

Ministry of Consumer Affairs staff in New Plymouth March 25-27

Senior Advisor Kim Morton, Ngapera Hoerara, Pamela Rogers

Media contacts:

In New Plymouth Commerce Commission Chief Investigator Ross McPherson 021 662 773

Ministry of Consumer Affairs Senior Advisor Kim Morton 025 465 410

Commerce Commission Fair Trading Manager Rachel Leamy at the seminar.

Commerce Commission Communications Officer Vince Cholewa

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

Ministry of Consumer Affairs Communications Manager Vince Calcinai

Phone work (04) 474 2750, home (04) 389 1787

Background

The law

The Commerce Commission enforces the Commerce Act and the Fair Trading Act.

The Fair Trading Act prohibits false or misleading representations and makes compulsory product safety and consumer information standards.

There are three product safety standards made compulsory 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 includes:

· 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

· The Auckland District Court ruled that in interest free promotions, the interest free price must be the same as the advertised cash price

· the Christchurch District Court ruled that "we will pay your interest" promotions are the same as interest free promotions, so the total price paid on terms must be the same as the advertised cash price

Education

The Commission has also put considerable effort into educating business people about the Act. As well as publicity, it has held seminars, visited towns where it has no office, provided speakers for conferences and has worked in particular with nation-wide traders. It also publishes a newsletter and a wide range of free pamphlets about the Acts it enforces.

Ministry of Consumer Affairs

Consumer Advice Service

Provides advice to people with consumer problems. Advice is free. The Consumer Advice Service has offices in Auckland, Wellington and Christchurch and operates toll-free telephone numbers.

Works with business to ensure that companies comply with consumer law.

Information and education services

Provides information to consumers and to business about buying and selling goods and services eg leaflets, videos, booklets, education resources, seminars

Trade measurement

Checks that traders' weights and measures are accurate.

Enforces and administers the Weights and Measures Act 1987.

Consumer safety

Investigates reports of unsafe consumer products.

Advises the Minister of Consumer Affairs about the exercise of the Minister's powers under the Fair Trading Act.

Consumer policy

Advises the Government on laws, practices and policies that affect consumers.

Administers the Consumer Guarantees Act, Fair Trading Act, Hire Purchase Act, Unsolicited Goods and Services Act, Layby Sales Act.