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
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
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
Call Plus Services Limited (Slingshot) Fair Trading Act 13(b), 13(c), 13(e), 13(f), 13(g), 13(i) Fined $250,000 after pleading guilty to 50 charges under the Fair Trading Act in relation to the marketing of its telecommunications services. Judgment 2013
Love Springs Limited (Phillip John Smart) Fair Trading Act 10, 47(j) Love Springs Limited and its director Phillip Smart fined a total of $555,000 for breaches of the Fair Trading Act in relation to the door-to-door sales of water filters. Judgment 2013
Roger Sutherland Fair Trading Act 10, 13(a), 21(a) Convicted and fined $45,000 and ordered to pay over $26,000 reparation on 11 charges of breaching the Fair Trading Act relating to the promotion and selling of tickets for a return train journey from Christchurch to Dunedin for an Elton John concert, when no train was provided. Judgment 2013
Eco-Pal Limited Fair Trading Act 10 Manufacturer of plastic rubbish bags. Found guilty of 15 breaches of the Fair Trading Act and fined $60,000 in relation to environmental claims that were liable to mislead. Judgment 2013
Baycorp (NZ) Limited Fair Trading Act 13(i) Likely to have contravened section 13(i) of the Fair Trading Act 1986 by claiming to have a right, on behalf of its clients, to add collection costs, some legal and court costs and interest, onto a debtor’s balance after security items have been repossessed and sold. In the Commission’s opinion, Baycorp had no legal right to do so because section 35 of the CRA prohibits a lender from recovering more than the debt balance outstanding after goods have been repossessed and sold. Settlement 2013
Sky Network Television Limited Commerce Act 27 Certain provisions in Sky's contracts with telecommunications retail service providers are likely to have breached section 27 of the Commerce Act. Confidential material in the public version of this letter has been removed. Its location in the document is denoted by [ ]. Warning 2013
Pacrite Industries Limited Fair Trading Act 10 Manufacturer of plastic rubbish bags. Fined $30,000 for breaches of the Fair Trading Act in relation to environmental claims that were liable to mislead. Judgment 2013
NZ Look Ltd (Sonia Klair) Crimes Act 228(b), 258(1)(b) PLEASE NOTE THIS CASE IS NOW UNDER APPEAL - Company director Sonia Klair, sentenced to 10 months home detention after pleading guilty to 64 charges under the Crimes Act, in relation to her running a business which engaged in false billing practices, also known as pro-forma invoicing. Judgment 2013
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 PLEASE NOTE THESE CASES ARE NOW UNDER APPEAL - Four companies and four individuals convicted and fined a total of $601,900 for selling visiting Asian tourists a range of imported alpaca goods as “Made in New Zealand”, and making claims that duvets were 100% alpaca or merino wool when they were not. Judgment 2013
Mi Woolies Ltd Fair Trading Act 10, 13(j), 40(1) Company fined $63,000 after pleading guilty to 10 charges of breaching the Fair Trading Act. The charges relate to false or misleading country of origin claims by the Company on its "UGG New Zealand" branded sheepskin footwear. Judgment 2013
Elderton Limited Fair Trading Act 13(i)

CCCF Act 17, 18, 24, 41
Third tier mortgage lender who has settled with the Commission after admitting breaching the Credit Contracts and Consumer Finance Act and the Fair Trading Act in relation to loans it made to four customers. Has made cash refunds of $42,000 and adjusted the balance on one continuing loan by about $55,000. Settlement 2013
Warwick Keith Nelson Taylor Fair Trading Act 13(b), 13(h), 13(i), 28(1)

CCCF Act 17, 32, 41
Auckland car dealer fined $22,000 after admitting to a number of charges including misleading customers, selling unnecessary warranties, and charging higher interest rates than those agreed. Sentencing notes to follow. Judgment 2013