Unicorn Trading fined after not honouring settlement with Commerce Commission
Published30 Mar 2000
Failing to honour an earlier settlement with the Commerce Commission led to husband and wife Seung Ho Ahn and Choon Hee Ahn being prosecuted and fined $2,000 in the Auckland District Court yesterday afternoon.
Mr and Mrs Ahn trade in the Victoria Park market as Unicorn Trading. Yesterday, they admitted that they breached the Fair Trading Act by selling clothing that did not comply with mandatory consumer information standards the clothing did not have fibre content labels and care labels.
Judge Thorburn said that he took into account Unicorn Trading's small size in setting the fine.
Commission Chair John Belgrave said that the prosecution should be seen as a warning to all businesses to heed Commission warnings and honour settlements.
"We see warnings and settlements as part of our education role," Mr Belgrave said. "They are intended to help businesses understand and comply with the law. Where a warning is ignored or a settlement is not honoured we will look at taking further action."
In September 1997 the Commission ended an investigation with a settlement with Unicorn Trading. In the settlement Unicorn Trading gave signed undertakings to:
cease selling clothing that did not have correct country of origin labels
ensure that all clothing supplied at the store had country of origin, care and fibre content labels in English, and
introduce procedures to check all clothes that arrive at the store to ensure that they comply with the consumer information standards.
In August last year Commission staff visited the store and found jackets and tops that did not comply with the consumer information standards. Mr and Mrs Ahn were interviewed and acknowledged that:
the clothes had no care and fibre content labels
they did not check all clothing
they had been previously warned about the consumer information standards, and
the Commission had previously given them information about the standards.
Background
The Minister of Consumer Affairs has power under the Fair Trading Act to make consumer information standards mandatory. To date there are mandatory consumer information standards for:
country of origin labelling of clothing and footwear
care labelling of textile goods, and
fibre content labelling of textile goods.
Courts can impose fines of up to $30,000 on an individual and up to $100,000 on a company.
