Commerce Commission staff will be visiting shops and speaking at meetings in Palmerston North next week.

Commission Fair Trading Manager Keith Manch said Commission staff will be talking about the Fair Trading Act. The visits are part of a programme to raise the profile of the Commission and knowledge of the Act in areas where there are no Commission offices.

Commission 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.

"It is an education exercise," he said. "We want people to understand how to operate within the law to protect themselves and consumers."

As well as visiting shops, the investigators will be speaking to business people at a Chamber of Commerce seminar and to staff at the Link Centre and Citizens' Advice Bureau.

Chief Investigator Rachel Leamy and Investigators Ross McPherson and Fa'amoana Pa'o will be in Palmerston North on February 27 and 28.

If you wish to arrange an interview with Ms Leamy in Palmerston North, please phone Rachel Leamy, work (04) 471 0180.

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.