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
Harcourts Group Limited Commerce Act 27 via s 30 Harcourts Group Limited was ordered to pay a penalty of $2.575 million following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me. Judgment 2016
LJ Hooker New Zealand Limited Commerce Act 27 via s 30 LJ Hooker New Zealand Limited was ordered to pay a penalty of $2.475 million following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me. Judgment 2016
Ray White (Real Estate) Limited Commerce Act 27 via s 30 Ray White (Real Estate) Limited was ordered to pay a penalty of $2.2 million following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me. Judgment 2016
Property Page (NZ) Limited Commerce Act 27 via s 30 Property Page (NZ) Limited was declared to have aided, abetted, counselled or procured five real estate companies to breach s 27 via s 30 of the Act. The real estate companies entered into and gave effect to a price fixing agreement to pass on to vendors the cost of advertising properties on Trade Me. No pecuniary penalty was imposed on Property Page (NZ) Limited. Judgment 2016
Lugton’s Limited Commerce Act 27 via s 30 Lugton’s Limited was ordered to pay a penalty of $1,000,000 following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me, and to take down existing Trade Me listings. Judgment 2016
ANZ Cars Limited Fair Trading Act 28 The Commission has reasonable grounds to believe that ANZ Cars 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
Youi NZ Pty Limited Fair Trading Act 13, 21C Youi NZ Pty Limited was ordered to pay a fine of $320,000 following admissions it had breached sections 13 and 21C of the Fair Trading Act through various false representations. These included representing that consumers could obtain a quote online when in fact this was not possible for the significant majority of customers; customers bank or credit card details were required to generate a quote when this was not the case; customers were obtaining a quote when in fact a policy was being issued. In addition Youi asserted a right to payment for unsolicited insurance policies by sending letters demanding payment and/or debiting consumers’ bank or credit card accounts without their express permission or knowledge. Judgment 2016
Smartcash Limited CCCF Act 105C(1), 17 The Commission issued three infringement notices as it had reasonable grounds to believe that Smartcash Limited breached s17 of the Credit Contracts and Consumer Finance Act 2003 by failing to include information required by paragraphs (ua), (ub) and (uc) of Schedule 1. Infringement – paid 2016
Nezam Anwer and Zodiac Motor Company Limited Fair Trading Act 13, 46A Zodiac Motor Company Limited was ordered to pay a fine of $105,000 following admissions it had breached section 13 of the Fair Trading Act by making false representations that its vehicles were AA appraised and that it was an AA Appraised Used Dealer. The company’s director, Mr Anwer has entered into Enforceable undertakings to pay Zodiac’s fine if the company fails to do so on time. Judgment and Enforceable undertakings 2016
PGG Wrightson Limited Commerce Act 27(1), 27(1) via s 30, 27(2), 27(2) via s 30 PGG Wrightson Limited were fined $2.7 million following settlement for breaching sections 27(1) and (2), and sections 27(1) and (2) via s 30 of the Commerce Act 1986 by entering into three anti-competitive agreements to set fees at livestock saleyards. They also agreed to contribute $50,000 to the Commission's costs. The fees arose in connection with the National Animal Identification and Tracing Act 2012. The agreements were: agents would charge farmers an RFID administration fee of $1.50 per head of cattle to register saleyard based cattle movements; saleyards would increase existing yard fees by $1.50 per head of cattle; and saleyards would charge a minimum fee of $25 for the tagging of any untagged cattle ($10 for any calves), where four employees of PGG Wrightson, Nigel John Thorpe, Donald Hugh James Baines, Douglas Michael Edwin Cartridge and Andrew Clark were charged according to their seniority and involvement in the conduct: Mr Thorpe ($25,000), Mr Baines ($20,000), Mr Cartridge ($20,000) and Mr Clark ($15,000). Judgment 2016
Karu Trading Company Limited Fair Trading Act 30(1) We have warned Karu Trading Company Limited that it is likely to have breached section 30(1) of the Fair Trading Act 1986 by supplying teddy bears that did not comply with the mandatory product safety standard. The mandatory product safety standard is established by the Product Safety Standards (Children’s Toys) Regulations 2005. Warning letter 2016
Bear Cottage Fair Trading Act 30(1) We have warned Bear Cottage that it is likely to have breached section 30(1) of the Fair Trading Act 1986 by supplying teddy bears that did not comply with the mandatory product safety standard. The mandatory product safety standard is established by the Product Safety Standards (Children’s Toys) Regulations 2005. Warning letter 2016
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