The Commerce Commission and Ministry of Consumer Affairs will be visiting Tauranga on Monday September 15 to Wednesday September 17 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 Tauranga businesspeople are invited to attend. The seminar will be on Wednesday September 17 at 6pm

The Chief Investigator from the Commission's Auckland office, Janet Whiteside, 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 Whiteside 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 Tauranga, 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 Pamela Rogers 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, hire purchase, product safety and weights and measures legislation."

The visit will have a particular focus on motor vehicle dealers, appliance, cellphone and computer retailers, pharmacies, sellers of goods covered by the three product safety standards (toys, bicycles and children's night-clothes) and booksellers.

These are business areas that the Commission has identified as raising specific compliance issues nation-wide. Computer retailers and booksellers are being concentrated on as part of the Commission's surveillance programme which identifies industries or practices that are of particular concern under the Fair Trading Act.

Seminar details

Venue: Quality Hotel, corner of Willow and Park Streets, Tauranga

Date: September 17

Time: 6pm - 8pm (doors open 5.30pm)

Cost: $20 (inc. GST) per head includes finger food (no charge for reporters)

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 Legal Advisor Lesa Kalapu

Commission Auckland office Chief Investigator Janet Whiteside to chair the seminar

Commerce Commission staff in Tauranga September 15-17

Chief Investigator Janet Whiteside, Investigators Catherine Butterworth and Nicki Squire, Enquiries Officer Donna Simpson, Projects Officer Estelle Le Lievre.

Fair Trading Manager Rachel Leamy will be in Tauranga on the afternoon of Wednesday September 17 and at the seminar.

Ministry of Consumer Affairs staff in Tauranga September 15-17

Legal Advisors Lesa Kalapu and Pamela Rogers, Senior Advisor (Consumer Safety) Colin Hooker and Trading Standards Officer Malcolm Milburn.

Media contacts

Commerce Commission

· Chief Investigator Janet Whiteside, Tauranga September 15-17, 025 473 141

Auckland (09) 377 7311

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

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

Ministry of Consumer Affairs

· Legal Advisor Pamela Rogers, Tauranga September 15-17, 021 613 481

Wellington (04) 474 2928

· Legal Advisor Lesa Kalapu, Tauranga September 15-17, 021 613 473

Wellington (04) 474 2825

· Communications Advisor Judy Cochrane, work (04) 470 2302

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 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 Services targets Maori, Pacific Island and low income 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.