Having a manager forget about a Commerce Commission warning has led to a wholesaler which supplied retailers throughout New Zealand, Butlers Equestrian Supplies Ltd, being fined $1,000 for breaching the Fair Trading Act.

The Commission prosecuted Butlers for a breach of the country of origin labelling regulations enforced through the Act. Butlers pleaded guilty in the Auckland District Court today.

Judge Ronald Young said country of origin labelling is an important matter.

Butlers sold Weatherbeeta jodhpur boots with no country of origin labels. Despite their English sounding name, the boots were made in China.

In its submissions to the Court, the Commission said it is generally accepted that some customers are willing to pay more for European products because they believe the goods are of higher quality.

Commission Chairman Dr Alan Bollard said that Butlers' New Zealand Manager was warned last year that all footwear must have correct country of origin labels. Before the warning, the Manager had confirmed that none of Butlers' footwear had country of origin labels.

When further complaints were investigated, the Manager told a Commission Investigator that he had told Butlers' Australian parent company about the warning but then forgot about the matter.

"We make considerable effort to educate business people about the law," Dr Bollard said. "But if our advice or warnings are ignored we will prosecute.

"Neither Butlers' New Zealand Manager nor its owners took action to ensure the company complied with the law. They brought this fine upon themselves."

Media contact: Communications Officer, Vincent Cholewa

Phone work (04) 498 0920, home (04) 479 1432

Background information

The Commerce Commission enforces the Fair Trading Act and the Commerce Act.

Three consumer information standards are enforced through the Fair Trading Act:

· country of origin labelling of footwear and clothes

· fibre content labelling of textile goods

· care labelling of textile goods

They apply to manufacturers, importers, distributors and retailers.

To educate businesses about the law, the Commission works with trade organisations, conducts seminars and visits towns where it has no office.

It also publishes a wide range of free pamphlets aimed at business people, including one about country of origin labelling.

Most of its enforcement action is through warnings and settlements with businesses who may have broken the law, rather than through court action. However, if these options do not work or if its first contact with a company is about a serious breach of the law, it will prosecute.