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.

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
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
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
Trademark Publisher Fair Trading Act 21(c) Trademark Publisher 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. Trademark Publisher refunded over $600,000 in payments. Warning letter 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
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
Budge Collection Limited and Sun Dong Kim Fair Trading Act 13(a) Both Budge Collection Limited and Mr Sun Dong Kim pleaded guilty to breaches of section 13(a) of the Fair Trading Act 1986 for making false or misleading representations that Budge's alpaca wool duvets contained predominantly alpaca wool, when in fact they contained only low amounts of alpaca wool. Budge Collection Limited was fined $57,000 and Mr Kim $ 14,250. Judgment 2016
Cars 4 Less Ltd t/a cars4less Fair Trading Act 28 The Commission issued three infringement notices as it had reasonable grounds to believe that Cars 4 Less Limited t/a cars4less, 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. Infringement – paid 2016
Shop In Trucks Limited Fair Trading Act 36C, 40(1B) The Commission issued five infringement notices as it had reasonable grounds to believe that Shop In Trucks Limited had breached section 40(1B) of the Fair Trading Act by contravening the layby sale agreement disclosure requirements in section 36C of the Act. Infringement – paid 2016
Rolleston Cars Limited, trading as Merlin1692 Fair Trading Act 28(1) The Commission issued two infringement notices as it had reasonable grounds to believe that Rolleston Cars Limited t/as Merlin1692, 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. Infringement – paid 2016
Rent to Own 2003 Limited CCCF Act 41, 69 The Commission warned Rent to Own 2003 Limited that the amount of their security registration/credit check fee and mortgage repayment insurance risk breaching s41 of the CCCFA and that requiring some debtors to take out comprehensive mortgage repayment insurance when they did not qualify for redundancy cover risks breaching section 69. Warning letter 2016