The Commerce Commission and Ministry of Consumer Affairs are inviting all Rotorua business people to a seminar about the Fair Trading Act and the Consumer Guarantees Act on Wednesday March 19.

The Chief Investigator from the Commission's Auckland office, Janet Whiteside, 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 finger food," Ms Whiteside said.

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

Included in the group are Malcolm Milburn from the Ministry's Trade Measurement Unit and Penny Nicholas from its Consumer Safety Section. They will be talking to business people and shop staff about issues that have come up in their work.

"This is a great opportunity for business people to increase their knowledge of the law," Ms Whiteside said. "Neither the Commission nor the Ministry has an office in Rotorua, and 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. No enforcement actions will result from this visit."

The Ministry's Trade Measurement Unit wants to ensure that goods are exchanged on the basis of fair, informed and accurate weight or measure by promoting effective market practices, and ensuring compliance with those practices.

This means that traders are aware of their legal obligations to use net weight, to sell a quantity that is not less than that indicated on a docket or label, and to use weighing instruments that are accurate and are approved for use in trade.

The Ministry is also aware of some misconceptions that both consumers and retailers have about the Consumer Guarantees Act. Consumer Advisor Ani Waaka said there has been confusion about manufacturer's warranty and consumers' rights under the Act, how the Act fits alongside other consumer protection laws and rights of return.

"This will be an opportunity to clarify any areas of uncertainty which may still be around," she said.

Commerce Commission staff in Rotorua March 17-19

Chief Investigator Janet Whiteside, Investigator Nicola Squire, Enquiries Officer Karen Cramer and Projects Officer Estelle Le Lievre. Fair Trading Manager Rachel Leamy will be in Rotorua on Wednesday afternoon and at the seminar.

Ministry of Consumer Affairs staff in Rotorua March 17-19

Consumer Advisors Ani Waaka and Leani O'Connor, Education Advisor Sue Sowerby, Advisor Penny Nicholas and Trade Measurement Officer Malcolm Milburn.

Seminar details

Venue:

Regal Geyserland

Date:19 March 1997

Time:6pm - 8.15pm (doors open 5.30pm)

Cost:$15 (inc. GST) per head includes finger food (no charge for media)

Cheques to Commerce Commission, PO Box 105-222, Auckland, Attention Eleanor James (door sales will be available on the night)

Speakers: Commerce Commission Fair Trading Manager Rachel Leamy

Ministry of Consumer Affairs Consumer Advisor Leani O'Connor

Ministry of Consumer Affairs Trade Measurement Officer Malcolm Milburn

Chairing the seminar is the Chief Investigator from the Commission's Auckland office, Janet Whiteside

Media contacts

Commerce Commission

Chief Investigator Janet Whiteside, Rotorua March 17-19, cellphone 025 473 141

Auckland (09) 377 7311

Fair Trading Manager Rachel Leamy, Rotorua at the seminar, Wellington (04) 498 0908

Communications Officer Vince Cholewa, work (04) 498 0920, home (04) 479 1432

Ministry of Consumer Affairs

Consumer Advisor Ani Waaka,Rotorua March 17-19, cellphone 025 465 410

Wellington (04) 474 2875

Trade Measurement Officer Malcolm Milburn Rotorua March 17-19, cellphone 025 455 583

Auckland (09) 570 9753

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

Recent action by the Commission includes:

  • a computer company was fined $50,000 for selling computer components which did not have the memory claimed for them
  • a car dealer was fined a total of $50,000 on two charges of 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

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 market place for consumers.

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.

The Consumer Guarantees Act

The Consumer Guarantees Act 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.

Following private legal action by a customer, a Dunedin car dealer was found to have breached the Consumer Guarantees Act and was ordered by the High Court to take back a car it had sold and pay compensation.