Concern about duty free promotions will be on the agenda when Commerce Commission staff visit shops and speak at meetings in Queenstown and Wanaka on April 26 and 27.

Commission Fair Trading Manger Keith Manch said Commission staff will be talking about the Fair Trading Act, with a particular focus on duty free promotions.

"We have had a lot of calls and letters from businesses in the area who are concerned that some duty free promotions are misleading tourists," Mr Manch said.

Last year an Auckland company was prosecuted for advertising opal, jade and paua jewellery as duty free. These goods are not subject to duty. The company was also prosecuted for having a duty free sign outside a shop which was not a duty free shop as defined by the Customs Act.

Mr Manch said the visit by Investigators from the Commission's Christchurch office is an education exercise.

"We want people to understand how to operate within the law to protect themselves and consumers," he said.

The Investigators will be talking to shop owners and managers to gauge their knowledge of the law and help them in any areas where they are not sure of their rights and obligations.

As well as visiting shops they will be speaking to meetings at the Chambers of Commerce in both towns.

Commission staff to visit will be Chief Investigator, Stuart Wallace, and Investigators, Margaret McPherson and Kevin Owen.

If you wish to arrange an interview with Mr Wallace please phone

work (03) 379 3284, he is unavailable today April 18, or

Vince Cholewa, Communications Officer

work (04) 471 0180, home (04) 479 1432

BACKGROUND INFORMATION

The Commerce Commission

The Commerce Commission is a Crown agency which reports to Parliament but is independent of the Government. It is separate from the Ministry of Commerce and the Ministry of Consumer Affairs.

Its role is to enforce the Fair Trading Act and the Commerce Act. It does this through a combination of educating business people, handling complaints, surveillance programmes, administrative settlements and prosecutions. It is an enforcement agency, not a policy adviser to the Government.

Fair Trading Act

The aim of the Fair Trading Act is to ensure that information available is accurate so consumers can make informed choices and are protected from unsafe goods. It applies to all aspects of the promotion and sale of goods and services, from advertising and pricing to sales techniques and finance agreements. It applies in addition to industry specific legislation like the Motor Vehicle Dealers Act and the Food Act.

The Act prohibits:

  • conduct that is "misleading or deceptive or is likely to mislead or deceive"
  • false or misleading representations
  • unfair practices

    • Product safety standards:

    These standards set test which products must meet before they can be sold. Safety standards can be added to the Act by the Minister of Consumer Affairs. Standards currently enforced through the Act are:

    • children's toys
    • bicycles
    • flammability of children's night clothes

    Consumer information standards:

    Consumer information standards can be added to the Act by the Minister of Consumer Affairs. Standards currently enforced throughout the Act are:

    • country of origin labelling of clothing and footwear
    • care labelling (drycleaning, washing, ironing etc) of textile goods
    • fibre content labelling of textile goods

    Investigation and enforcement:

    The Commission may initiate investigations into possible breaches of the Act in response to complaints or its own surveillance programmes. Following an investigation the Commission may:

    • take no further action
    • refer the matter to a more appropriate authority
    • issue a warning
    • negotiate a settlement
    • take court action

    Penalties:

    The Commission is not a judicial body, only courts can impose penalties. They can impose fines of up to $100,000 on companies and up to $30,000 on individuals. They can also impose a wide range of orders and injunctions.

    In addition to any action the Commission may or may not take, customers, competitors and anyone else can take their own legal action under the Act to the Disputes Tribunal or courts.