Fair Trading Act Enforcement Actions Register

The enforcement actions register contains all litigation and settlements since July 2009 under the Fair Trading Act. The register does not list investigations resulting in warnings, compliance advice or no further action. Information about warnings can be found in the Appendices to the Annual Report.

Parties Section Description Resolution Year
Chrisco Hampers Limited 10 and 13(i) Misleading conduct and misrepresentations relating to customers’ cancellation rights. Judgment 2012
GE Money 11 Misleading advertising of the benefits of a debt consolidation loan Settlement 2011
Pulse Utilities New Zealand Limited S13(g) Trader breached the Fair Trading Act by misleading customers about the amount they were required to pay when they sought to terminate their supply agreement with Pulse by failing to carry over a prompt payment discount to the customer's final invoice. Settlement 2011
Vodafone New Zealand Limited 11 Misleading representations that its Vodafone Live! mobile phone internet browsing service was "free to browse" and customers would be warned before incurring any charges. What consumers could and could not use for free was unclear and customers were not warned before incurring expensive data charges. Judgment 2011
Telecom Corporation of NZ Ltd 13(b) & 13(g) Alleged false or misleading representation as to the price of broadband services in that Telecom had overcharged customers due to a problem with the data usage meter. Settlement 2011
Compass Communications Limited 11 Alleged misleading representations in that there is a lack of disclosure regarding the existence of a daily administration fee. Judgment 2011
Wenatex New Zealand Limited 13(i) Trader breached the Fair Trading Act by misleading customers about their cancellation rights under the Door to Door Sales Act. Judgment 2011
Tel.Pacific New Zealand Limited 11 Misleading representations as to calling rates of prepaid phone cards. Judgment 2011
Vodafone New Zealand Limited Alleged misrepresentations concerning various broadband and mobile phone promotions. Judgment 2011
Morrison Car Company Limited 13(g) & 28(1) Misleading representations that vehicles were available on Trade Me for $1 reserve when trader was bidding on his own auctions (shill bidding). Vehicles were also advertised and supplied without CIN notices. Judgment 2011
Contact Energy Limited 13(g) Misleading consumers as to amount owed on accounts. Settlement 2011
Takarunga Management Limited and Trevor Allan Ludlow 45 and 30 (1) (e) CCCFA. 13 (i) FT Charging a third party fee that exceeded the actual amount payable, charging a cancellation fee not for reasonable expenses related to the contract and its cancellation. False and misleading representations as to rights. Judgment 2011
Honey New Zealand (International) Limited 13(j) Trader imported Chinese powered royal jelly and sold it in capsules claiming it was "made in New Zealand". Judgment 2011
The Home Finance Company 14(1)(b) Misleading advertising of sale by instalment scheme. Judgment 2011
Sung Yub Paik trading as Healthways Products Corporation Limited 10 Trader was misrepresenting the amount of mg in a capsule of its royal jelly products and the country of origin of product. Judgment 2011
Balmoral Homes Limited 13(f), (i), 14 Misleading representations that building contracts came with a Master Build Guarantee. Guilty pleas. Day and Jones both convicted and ordered to pay fines of $15,000 each. Total reparation ordered of $127,000 ($30,000 of which for emotional harm for 6 victims). Judgment 2010
1. Affinity Car Rental New Zealand Limited 2. Euro Car Rental New Zealand Limited 3. Kylee Harris 4. Gary Harris 13(b), (d), (f), (g), (h) (i) Alleged misleading representations that rental car hirers responsible for damage and that some cars were late model. Also charges levied which had not been disclosed in rental agreement. Fined a total of $37,960. $5,750 reparation to affected consumers. Judgment 2010
Prokiwi International Limited 13(j) Alleged misleading representation as to the country of origin of soap. Fined $48,000. Judgment 2010
Shim's International Limited 13(a) Alleged misleading claims on the labels of the products. Fined $6,000. Judgment 2010
Korea Health Limited and Sang Rae Kim 13(a) Alleged misleading claims on the labels of the products. Korea Health Limited fined 16,000, Sang Rae Kim fined $12,000, plus costs.
Judgment 2010
GM Car Wholesalers Limited 13(a), 28(1) Alleged that trader is providing false information in CINs Settlement 2010
Sunrise Motor Group Limited and Surya Kumar 27 Trader advertised vehicle for sale on Trade Me and at car yard that was imported damaged and this information was not disclosed on CIN. Judgment 2010
TMG Asia Pacific Pty Limited 11, 13(g)(b) Failure to disclose terms and conditions of text to win competition, misleading consumers. Fined $125,000, court costs $1040.
Judgment 2010
Mainfeeds Limited formerly t/a PCL Industries Limited 10, 13(a) Trader produced calf feed that did not comply with nutritional specifications on packaging. Fined $125,000, court costs of $1040. Judgment 2010
Tristram European Limited 13(g) Misleading representations about the price of motor vehicles particularly that vehicles could be purchased on 0% interest when 0% interest terms were not available on a lower negotiated price. Alleged misrepresentation about the price of vehicles, particularly that the amount of establishment fees had not been disclosed in advertising. Fined $18,000, court costs $650, solicitor costs $750.

Judgment 2010
New Zealand Natural Care Products Limited 13(j) Misrepresentation as to country of origin of product. Fined $15,000, court costs $260.
Judgment 2010
Larry Roger Binns 11, 13(a) Misrepresentation of quality of timber. Fined $15,000, court costs $130.
Judgment 2010
Budget Loans Limited 13(i) Fair Trading Act Misleading representations that creditor has the right to charge undisclosed credit fees, to charge default interest and fees after the sale of repossessed secured items, which is prohibited under the Contractual Remedies Act, that it has the right to attach its security interest to after-acquired consumer goods without specific appropriation despite section 44 of the Personal Property Securities Act. Creditor fined $30,750. The creditor reversed or refunded around $500,000 in overcharged interest and fees. During the Commission’s investigation Budget Loans also voluntarily reversed or refunded an additional $571,000 to its debtors in relation to credit fees that were not the subject of the current charges. Judgment 2010
ANZ National Bank Limited (ANZN) and ING (NZ) Limited (ING) 10, 13 (a), 13 (b), 13 (e) Misleading representations about the degree of risk when when promoting and marketing the ING Diversified Yield Fund (DYF) and the ING Regular Income Fund (RIF). Questions and answers published on 21 July 2010 are available at Fair Trading/Enforcement Outcomes Settlement, $45 million in refunds to affected investors 2010
Telecom New Zealand Limited 11 Misleading advertising statements in relation to its broadband at dial-up prices promotion, particularly the disclosure of the 12 month contract term and data allowance associated with the basic broadband plan. Settlement 2010
Methven Limited 13(e) Misleading advertising statements over conventional shower water flow being 20L per minute, when majority of NZ showers have a water flow of between 6-10ml per minute. Judgment 2010
Kenneth James Ross 13(i) Alleged that some aircraft and performers stated in advertising will not be apearing at the airshow. Criminal charges also laid by Police. Judgment 2010
Telecom Corporation of NZ Limited and Xtra Limited 13(g) Alleged misleading consumers by wrongly billing over 130,000 new broadband customers Settlement, $9.5 million in refunds paid to affected customers 2010
A) Invercargill Property Management Limited (IPM) B) Newfoundland Limited C) Southern Housing Limited D) CMA Property Investments Limited s14(1)(b) Alleged breaches of section 14(1)(b) by IPM by making representation that were false or misleading as to the nature of the interest that the IPM scheme occupiers acquire in the properties. A) Fined $38,500 and $25,000 reparation B) Fined $13,500 and $10,955 reparation C) Fined $10,500 and $5,000 reparation D) Fined $40,000 and $42,290 reparation Judgment 2010
Telecom New Zealand Limited 11 Misrepresentation concerning Go Large plan and the speed available for broadband users. Fines $500,000. Judgment 2010
A) Discount Premium Holidays Limited B) Devang Parikh A) s13(a) B) Commerce Act s103 A) False and misleading claims surrounding a holiday voucher scheme. Fined $209,000; court costs $4,940; solicitor fees $7,500.
B) Attempting to mislead the Commerce Commission. Fined $7000; costs $260.
Judgment 2010
Eden Office Seating 13(j) Misleading representations concerning the place of origin of goods. Fine $5000, costs $2500, court costs $130. Judgment 2009
Farmers Trading Company Limited 10 Misleading conduct that a television was new when in fact it had been returned for repair by a previous customer a year earlier. Fine $10,000, costs $130. Judgment 2009
Redpaths Furniture Limited 13(g) Represented 'was’ price was not true and had not been charged for six months or more. Recent price established, before sale, was less than represented ‘was’ price. Fine $28,000 ($1,000 per charge), court costs $3640 ($130 per charge). Judgment 2009
Peter Linton t/a Charitables Op Shop 11 Misleading consumers about the nature of a charity shop. Reparation $10,000. Judgment 2009
TrustPower Limited 11 Misleading its customers about the nature of a power bill review service. Fined $17,000. Judgment 2009
Brownlie Brothers Limited 13(a), 13 (j) Misleading representations as to the country of origin of fruit juice. Fined $45,000, costs ordered $6780. Judgment 2009