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
Craig Douglas Fair Trading Act 13(e), 13(f) Likely breach of sections 13(e), 13(f) of the Fair Trading Act on the website at www.clearwaterhomes.co.nz by entering false customer testimonials and claiming 20 years experience for the Clearwater Homes partnership in Canterbury. Warning 2015
Sportzone Motorcycles Limited 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 alleged were unreasonable. The Court ruled that the fees were unreasonable, and provided guidance on how credit fees may be calculated. The lender and seller unsuccessfully appealed against those decisions. Judgment 2015
Air New Zealand Ltd Fair Trading Act 11, 13(g) In the Commission’s view Air New Zealand Ltd is likely to have breached sections 11 and 13(g) of the Fair Trading Act by selling travel insurance on an opt out basis, when customers book online or via Air NZ’s mobile app. The Commission considered that the company’s disclosure of the requirement to opt out of the insurance was insufficient to bring it to the attention of all reasonable consumers Warning 2015
Westpac New Zealand Limited and Westpac Banking Corporation (Westpac) Fair Trading Act 09 The Commerce Commission considered that Westpac engaged in conduct that was misleading or likely to mislead certain customers by understating the risks and/or overstating the benefits of interest rate swap agreements. The Commission and Westpac reached a negotiated settlement whereby Westpac agreed to make available $2.47 million to eligible customers and make an out-of-court admission that some of its conduct breached section 9 of the Fair Trading Act 1986 in relation to some of its rural customers. Settlement 2015
ASB Bank Limited (ASB) Fair Trading Act 09 The Commerce Commission considered that ASB engaged in conduct that was misleading or likely to mislead certain customers by understating the risks and/or overstating the benefits of interest rate swap agreements. The Commission and ASB reached a negotiated settlement whereby ASB agreed to make available $2.7 million to eligible customers and make an out-of-court admission that some of its conduct breached section 9 of the Fair Trading Act 1986 in relation to some named customers. Settlement 2014
Wild Nature NZ Limited and Sung Ho Park Fair Trading Act 10, 13 Wild Nature NZ Limited and Mr Park convicted for selling Asian tourists imported alpaca rugs as “Made in New Zealand”, and making claims that duvets were 100% alpaca or merino wool when they were not. Fined a total of $268,444. Sentencing decision 2014
ANZ Bank New Zealand Limited (ANZ) Fair Trading Act 09 The Commerce Commission considered that ANZ engaged in conduct that was misleading or likely to mislead certain customers by understating the risks and/or overstating the benefits of interest rate swap agreements. The Commission and ANZ reached a negotiated settlement whereby ANZ agreed to pay up to $18.5 million to eligible customers and make in-court admissions that it engaged in misleading conduct. The High Court granted the Commission’s application for a declaration that the bank’s conduct breached the Fair Trading Act 1986. Settlement and judgment 2014
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
BGV International Limited Fair Trading Act 10 BGV International Limited convicted for offering for sale alpaca rugs that were bearing labels that represented the rugs were made in New Zealand, when the rugs were actually imported from Peru. Fined $22,000. Sentencing decision 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
Changes to Consumer Credit Law