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.

Parties Act/Section Description Resolution Year
Pulse Energy Limited Fair Trading Act 11, 13(c), 13(g), 19(1)(b) In the Commission’s view Pulse Energy Limited is likely to have breached section 13(c) by switching customers without their consent; section 13(g) by comparing its GST exclusive rates with customers’ GST inclusive rates; and sections 11 & 19(1)(b) by representing that a low fixed daily rate was available to customers residing in a certain area where the rate being offered was not in fact available. Warning 2014
Broadlands Finance Limited (BFL) Fair Trading Act 09, 13(i) Likely breach of section 9 and 13(i) by BFL. Commission considers that BFL's conduct in representing that it was entitled to add interest and fees to customers' loans after it had repossessed and sold consumer goods pursuant to a security agreement is likely to breach sections 9 and 13(i). Under section 35 of the Credit (Repossession) Act 1997, a creditor is not entitled to recover more than the balance left owing after the proceeds of the sale of the repossessed assets have been deducted. Warning 2014
Sportzone Motorcycles and Motor Trade Finance Limited Fair Trading Act 09

CCCF Act 17, 41
Motor vehicle finance lender and motorbike seller charged credit fees that the Commission allege were unreasonable. In this judgment the Court provided further guidance on how credit fees may be calculated. This is the second of two separate judgments of the High Court. Judgment 2014
Broadlands Finance Limited Fair Trading Act 13(i) In the Commission's view Broadlands breached s13(i) of the Fair Trading Act by charging interest and fees on loans after repossessing and selling secured consumer goods. Broadlands has not admitted liability but has agreed to refund approximately $3.3 million in interest and fees to affected debtors. Settlement, including Enforceable Undertakings 2014
Mr Prabhash Srivastava Fair Trading Act 22 Certain misrepresentations made by the trader in the context of selling licenses to operate a medical supplies business were likely to breach section 22 Fair Trading Act 1986. Warning 2014
NZ Look Ltd (Sonia Klair) Crimes Act 228(b), 258(1)(b) Appeal against conviction and sentencing judgment dated 12 September 2013. Sonia Klair’s home detention sentence was reduced from ten to five months. Conviction and sentencing appeal decision 2014
Agrissentials NZ Limited Fair Trading Act 10, 13 Agrissentials have made representations (about its own product and that of its competitors) that are likely to be misleading and risk breaching sections 10 and 13 of the Fair Trading Act. Warning 2014
Glaistor Ennor Solicitors Nominee Company Limited Fair Trading Act 13(i)

CCCF Act 38, 39, 40, 41, 50
Likely breach of sections 38, 39, 40, 41 and 50 of the Credit Contracts and Consumer Finance Act for money lending. Also likely breach of section 13(i) of the Fair Trading Act in relation to misleading representations concerning the existence of a condition or right. Warning 2014
Robert Rowe, Steweart Porter, Rangi Savage Fair Trading Act 24 Mr Savage was fined $40,000, and Mr Rowe and Mr Porter $20,000 each. They were also ordered to pay reparation to the victims totalling $60,000 for breaching s24 of the FTA by promoting a pyramid scheme, TVI Express, during June–October 2011. Judgment 2014
David Rees Fair Trading Act 09, 13(a) Likely breach of s9 & s13(a) of the Fair Trading Act regarding the promotion and sale of Airfoam wall insulation. Warning was issued to David Rees (company director) as a party to the companies offending. Warning 2014
Hyeon Company Ltd, Premium Alpaca New Zealand Ltd, Duvet 2000 Ltd, JM Wool Ltd, Han Young Chae, Yun Duk Jung, Bo Sun Yoo, and Jong Myung Lee Fair Trading Act 10, 13 Appeal of High Court sentencing Judgment dated 10 September 2013. Appeal dismissed. Sentencing appeal decision 2014
Kuehne + Nagel International AG Commerce Act 27(2), 27(2) via s 30 Fined $3.1 million for breaching Part 2 of the Commerce Act by fixing the price of a surcharge imposed on freight shipments from the UK to New Zealand. Judgment 2014
Visy Board Pty Ltd Commerce Act 27(1) via s 30, 27(2) via s 30 Ordered to pay a penalty of $3.6 million and its former senior executive, John Carroll, $25,000, for breaching the Commerce Act by being involved in price fixing with Amcor Ltd. James Hodgson, who had responsibility for Amcor's New Zealand CFP operation was fined $60,000 plus costs for his involvement. Judgment 2014
MAC Warranties and Alan Spier Fair Trading Act 13(a), 13(i) Misrepresentations made when repossessing and selling vehicles the subject of consumer credit contracts. Judgment 2014
Carter Holt Harvey Ltd Commerce Act 27(1) via s 30, 27(2) via s 30, 80(1)(c) Fined $1.85 million for breaching Part 2 of the Commerce Act by fixing prices for the supply of structural timber to commercial customers in Auckland. Company director fined $5,000 for his involvement. Judgment 2014
District Health Boards (DHBs) Commerce Act 27 Certain provisions in the 2012 Community Pharmacy Services Agreement were likely in breach of section 27 of the Commerce Act Warning 2014
Pharmacies Commerce Act 27 Certain provisions in the 2012 Community Pharmacy Services Agreement were likely in breach of section 27 of the Commerce Act Warning 2014
Pharmacy Guild of New Zealand Incorporated Commerce Act 80(1)(c) The Pharmacy Guild has contravened s 80(1)(c) of the Commerce Act by aiding, abetting, counselling or procuring DHBs and/or Guild members to likely breach s 27 of the Commerce Act. Warning 2014
Tiny Terms Limited Fair Trading Act 13(i)

CCCF Act 17, 32
Finance company fined $77,200 for its part in the door-to-door sale of water filters by Love Springs Limited. Judgment 2014
Vodafone New Zealand Limited Fair Trading Act 11, 13(c), 13(e), 13(i) Paid out $268,231 to customers in a settlement reached with the Commission concerning the company's promotion of the "Broadband Lite" service. The issues resulted in potential breaches of sections 11, 13(c), 13(e) and 13(i) of the Act. Settlement 2013