Enforcement Response Register

This register contains warnings, settlements and judgments since 1 January 2014 under the Fair Trading Act 1986, the Commerce Act 1986, and the Credit Contracts and Consumer Finance Act 2003.

It does not contain all enforcement responses before this date or enforcement responses withheld under the Official Information Act 1982.

Please note that judgments will be published as we receive them from the Court. This can sometimes be several months after the relevant hearing.

Investigation reports

Selected judgments

Enforcement Response Guidelines

Our guidelines describe how the Commission enforces New Zealand's fair trading, competition and credit contract laws.

Parties Act/Section Description Resolution Year
Harmoney Limited Fair Trading Act 11 Harmoney Limited has been found guilty and fined $292,500 in the Auckland District Court, following admissions that they had breached s11 of the Fair Trading Act 1986. Harmoney mislead consumers into believing they had been pre-approved for a personal loan. Judgment 2016
Fletcher Steel Limited Fair Trading Act 13(a) Fletcher Steel Limited was warned for a likely breach of section 13(a) of the Fair Trading Act relating to representing that particular batches of 500E mesh complied with the requirements of the Standard (AS/NZ 4671:2001) when it did not. Warning letter 2016
United Steel Limited Fair Trading Act 13(a) United Steel Limited received compliance advice for a potential breach of section 13(a) of the Fair Trading Act relating to representing that particular batches of SE62 500E mesh complied with the requirements of the Standard (AS/NZ 4671:2001) when it did not. Other 2016
Godfrey Hirst NZ Limited Commerce Act 67 Court of Appeal decision rejecting Godfrey Hirst’s appeal Judgment 2016
PTMO Limited Fair Trading Act 09, 13(b), 13(c), 21C(1)(b) The Commission has issued a warning to PTMO Limited for sending a notice to trademark holders that is likely to breach the Fair Trading Act 2003 and mislead trademark holders. Warning letter 2016
Vikram Mehta Fair Trading Act 21, 40

Crimes Act 240, 66
Vikram Mehta, former director of Flexi Buy Limited, has been found guilty under s 240 of the Crimes Act 1961 for aiding Flexi Buy to obtain money by deception by making false representations to customers that their goods would be supplied after they made full or partial payments, knowing that the goods would not be supplied. Charges were also filed under s 21 of the Fair Trading Act 1986 as Mr Mehta aided Flexi Buy to accept payments from customers when at the time of acceptance he either did not intend to supply the goods or did not have reasonable grounds to believe that the goods would be supplied within a reasonable time. Mr Mehta will be sentenced on two charges under s 240 of the Crimes Act. Judgment 2016
Manawatu (1994) Ltd Commerce Act 27 via s 30 Manawatu (1994) Ltd were ordered to pay a penalty of $1.25m following admissions they had breached s 27(1) and (2) via s 30 of the Commerce Act by entering into and giving effect to an agreement with at least 10 other real estate agencies in Manawatu to pass on to vendors the cost of advertising a property on Trade Me. Judgment 2016
Jap Imports Limited t/a japimports.co Fair Trading Act 28 The Commission issued an Infringement Notice as it had reasonable grounds to believe that Jap Imports Limited breached section 28 of the Fair Trading Act by failing to comply with the Consumer Information Notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. Infringement – referred to Ministry of Justice 2016
TM Publisher AG Fair Trading Act 21(c) TM Publisher AG (TMP) were warned for potential breaches of s 21(c) of the FTA for sending unsolicited invoices without making a statement that recipients are under no obligation to pay. TMP refunded over $600,000 in payments. TMP also gave the Commission court enforceable undertakings in April 2016 which resulted in the reversal of payments to approximately 110 trademark holders, and an agreement not to engage in the same or similar conduct without the Commission or court’s consent. Warning letter and enforceable undertakings 2016
Smart Shop Limited t/a Smart Store Fair Trading Act 13(i), 36U

CCCF Act 17, 22
Smart Shop Limited was ordered to pay a penalty of $135,000 following admissions it had breached ss 17 and 22 of the CCCFA for failing to provide adequate disclosure. It also admitted to breaching s 13(i) of the FTA for misleading borrowers about their rights and s 36U for failing to disclose to consumers the required information about their extended warranty agreements. Judgment 2016
Ace Marketing Limited Fair Trading Act 13(i)

CCCF Act 17, 32(1)(c), 41
Ace Marketing Limited was ordered to pay a penalty of $150,000 following admissions it had breached ss 17, 32(1)(c) and 41 of the CCCFA for failing to provide adequate disclosure and for charging unreasonable credit fees. Ace Marketing also admitted to breaching s 13(i) of the FTA for misleading borrowers about their rights. Judgment 2016
Yoghurt Story New Zealand Limited and Frozen Yoghurt Limited Fair Trading Act 10, 13 Conviction of Yoghurt Story New Zealand Limited and Frozen Yoghurt Limited in respect of 110 charges under s10 FTA for misleading the public about the characteristics of the companies' frozen yoghurt products. The judge found that the companies had promoted frozen yoghurt products which did not contain yoghurt, and made misleading claims about the product’s health benefits. Fined $270,000 reduced to $70,000 on account of the companies insolvency so as not to disadvantage other creditors. Judgment 2016
Matt Blair Limited t/a Matt Blair Motors Fair Trading Act 28 The Commission issued an infringement notice as it had reasonable grounds to believe that Matt Blair Motors Ltd breached section 28 of the Fair Trading Act by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. Infringement – paid 2016
Trustpower Ltd Fair Trading Act 11 Trustpower Ltd was ordered to pay a penalty of $390,000 following admissions it had breached s 11 of the Fair Trading Act 1986 by misleading consumers over the price and terms of its bundled electricity and unlimited broadband offer. Judgment 2016
464 Limited t/a cars2gochch Fair Trading Act 28 The Commission issued two infringement notices as it had reasonable grounds to believe that 464 Limited t/a cars2gochch, breached section 28 of the Fair Trading Act 1986 by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008 and issued one for failing to display that they were in trade on an auction listing as required by Section 28B of the Act. Infringement – paid 2016
Inch Quality European Limited Fair Trading Act 28 The Commission has reasonable grounds to believe that Inch Quality European Limited breached section 28 of the Fair Trading Act by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. Infringement – paid 2016
AirAsia X Service Pty Limited Fair Trading Act 11, 13(b), 13(g) Air Asia was warned for potential breaches of ss 11, 13(b) and 13(g) of the Fair Trading Act relating to representing a headline price for flights that did not include charges for pre-selected optional services and unavoidable payment processing fees. Warning letter 2016
Coles Group New Zealand Holdings Fair Trading Act 30 Coles Group New Zealand Holdings (K Mart) has likely breached s 30 of the Fair Trading Act for supplying children's nightwear which had incorrect fire warning labels. Warning letter 2016
MIT Limited Fair Trading Act 28 The Commission has reasonable grounds to believe that MIT Limited breached section 28 of the Fair Trading Act by failing to comply with the consumer information notice requirements for used motor vehicles set out in the Consumer Information Standards (Used Motor Vehicles) Regulations 2008. Infringement – paid 2016
Adelphi Finance Limited CCCF Act 17 We have warned Adelphi Finance Limited that it has likely breached section 17 of the Credit Contracts and Consumer Finance Act 2003 for failing to provide borrowers with initial disclosure of applicable information about their consumer credit contracts. Warning letter 2016