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December 1997

1997: More court action, precedent cases and higher penalties

28 December 1997

1997 saw more court action being taken by the Commerce Commission, important legal precedents being set and higher penalties being imposed by courts.

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$10,000 fines for misleading Jeep ads

19 December 1997

Chrysler importer, Astre (NZ) Pty Limited was fined $10,000 in the Auckland District Court yesterday, after admitting it made misleading claims about the prices of Jeeps.

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Fair Trading breaches cost Enerco more than $14,500

18 December 1997

In the Auckland District Court today, Enerco New Zealand Limited admitted its "Buy Smart" and "Home Smart" gas promotions were misleading, pleaded guilty and was ordered to pay fines and costs totalling $14,535.

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Commission to prosecute BellSouth

18 December 1997

*On 27 November 1998 Rushton DCJ ruled that Bell South New Zealand was not in breach of the Fair Trading Act.*

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Appliance dealer admits Fair Trading breach

17 December 1997

Southland's largest appliance retailer, Rice Refrigeration Limited, has admitted that it breached the Fair Trading Act by making misleading claims about prices.

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Misleading subscription offers

14 December 1997

After a Commerce Commission investigation, three magazines, Fashion Quarterly, Cleo and She & More, will publish apologies for misleading consumers about subscription offers.

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NZ Office Products fined $5,000 for misleading prices

11 December 1997

A subsidiary of Blue Star Group, New Zealand Office Products Limited, has been fined $5,000 after admitting it breached the Fair Trading Act by making misleading claims about prices.

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Bicycle safety standard and Christmas shopping

6 December 1997

As the Commerce Commission ends an investigation involving a bicycle importer and distributor, it is warning anyone buying bicycles to check them carefully preferably before buying and certainly before the bicycles are ridden.

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Appeal fails – $12,000 pyramid selling penalties stand

5 December 1997

The Christchurch High Court has rejected an appeal by Leo van Dijk against his conviction and fine of $10,000 plus $2,000 costs for operating a pyramid selling scheme.

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November 1997

Big problem with cellphone promotions leads to more Commission court action

30 November 1997

"There is a big problem with cellphone promotions," Commerce Commission Chairman Dr Alan Bollard said today.

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Big competition issues face electricity industry

19 November 1997

The electricity industry is facing significant Commerce and Fair Trading Act issues, some of which are before the courts now, while others will hopefully be resolved without court action Commerce Commission Chairman Dr Alan Bollard said today.

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High Court injunction stops Stefan's misleading advertising

7 November 1997

The Wellington High Court yesterday imposed injunctions on Enza subsidiary, Stefan's Fresh Juice Company, promotions of orange juice, after finding that the promotions were misleading and breached the Fair Trading Act.

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Fine print: We will give you a loan for a fee of up to only $500*

5 November 1997

This example of fine print in advertising is real. It is from one of the Commerce Commission cases being discussed today at a seminar about advertising regulation, being run by the Commission and the advertising industry.

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October 1997

What you see is what you get – and a refund offer Commission settlement with Revlon

31 October 1997

As part of a settlement with the Commerce Commission, Revlon New Zealand Limited is publishing corrective advertising to ensure that what its customers see is what they get, and is offering dissatisfied customers a refund.

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Commission investigating claims about food

30 October 1997

The Commerce Commission is continuing its investigation into food labelling and promotional material.

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Ben Rumble fined $8,000 for Fair Trading breach

9 October 1997

Commerce Commission action against misleading cellphone promotions continued today with the Christchurch District Court fining Ben Rumble Communications Limited and Bennie Arthur Rumble a total of $8,000 for breaching the Fair Trading Act.

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Cellphone company admits Fair Trading breach: Commission says industry must clean up its act

8 October 1997

Hart Candy Communications Ltd has admitted that its advertising of cellphones breached the Fair Trading Act.

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September 1997

Commission report raises issues about court actions

18 September 1997

Several issues affecting Commerce Commission court actions are among those raised in the Commission's annual report tabled in Parliament today.

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Tauranga businesses to meet Commerce Commission and Ministry of Consumer Affairs

10 September 1997

The Commerce Commission and Ministry of Consumer Affairs will be visiting Tauranga on Monday September 15 to Wednesday September 17 to visit shops and businesses to discuss the Fair Trading and Consumer Guarantees Acts and other consumer protection issues.

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Korean officials visit NZ to study competition law

3 September 1997

A five-member Korean government delegation will meet the Commerce Commission tomorrow to study New Zealand's competition law, the Commerce and Fair Trading Acts.

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August 1997

Black Magic pyramid selling penalties total $29,000

29 August 1997

A further Commerce Commission prosecution has brought the total fines and costs imposed on people involved in the Black Magic pyramid selling scheme to $29,000.

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Accent Holidays misled public to promote time shares

29 August 1997

The Auckland District Court was today strongly critical of Accent Holidays Ltd when it fined it $25,000 for breaching the Fair Trading Act by making misleading claims to promote time shares.

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Scam costing NZ business $millions

21 August 1997

"False invoices", "proforma invoicing", "rogue publishing", and telefraud - it goes by various names, but it is all a scam that is costing New Zealand businesses millions of dollars a year.

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False claims that seaweed soap causes weight loss

17 August 1997

The Commerce Commission said today that, in its view, the distributor of Soft Seaweed Soap, SCI Natural (NZ) Ltd, had made false claims that the soap would help people lose weight, and may have breached the Fair Trading Act.

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Commission withdraws warnings

8 August 1997

The Commission has withdrawn the warnings given to Alpine Energy Limited, Dunedin Electricity Ltd, Electricity Invercargill Ltd and The Power Company Ltd concerning attempts to contract out of the Consumer Guarantees Act 1993.

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Significant Penalty applied in Job Advert Case

5 August 1997

In the first significant case involving employment advertising under the Fair Trading Act, a Christchurch District Court judge yesterday fined the Prudential Assurance Company of New Zealand Ltd a total of $23,000.

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July 1997

Commission settlement – Les Mills changes TV advertising

29 July 1997

As part of a settlement with the Commerce Commission, Les Mills World of Fitness has changed its television advertising to ensure that it does not mislead potential members about joining fees.

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Commerce Commission – compliance through enforcement, surveillance, education

28 July 1997

The Commerce Commission intends to further increase compliance with the Commerce and Fair Trading Acts through a mix of enforcement action, surveillance and education in the 1997-1998 financial year (1 July 1997 to 30 June 1998).

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Commission warns 29 power companies

25 July 1997

The Commerce Commission has warned 29 power companies that their contracts for domestic consumers are at risk of breaching the Fair Trading Act.

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Precedent case – promoting pyramid scheme costs $12,000

23 July 1997

The Christchurch District Court today fined Leo Van Dijk $10,000, plus $2,000 solicitor's costs, for breaching the Fair Trading Act by promoting a pyramid selling scheme known variously as "Black Magic", "Magic 95" and "Black Magic 95".

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June 1997

Commission settlement:

29 June 1997

After a Commerce Commission investigation into misleading claims about fat content, Woolworths (NZ) Limited has changed the way it labels and checks meat.

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Court makes big change to recommended retail price promotions

26 June 1997

Analysis of comments made by Judge Green in sentencing Bond and Bond to a record $63,000 Fair Trading Act fine shows that his decision makes a significant change to when using recommended retail prices is misleading and a breach of the Fair Trading Act.

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Warning: Endeavour retirement plan includes pyramid selling

11 June 1997

The Commerce Commission has warned Endeavour International Ltd that the company's retirement savings scheme, the Endeavour Plan, risks breaching the Fair Trading Act because it includes pyramid selling.

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May 1997

Commission finds no evidence that Xtra breaches

29 May 1997

The Commerce Commission has found no evidence that Telecom's Internet service provider (ISP), Xtra, is breaching the Commerce Act by offering below cost access to the Internet.

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Record fine imposed on Bond and Bond $63,000

8 May 1997

The Christchurch District Court has imposed the highest fine yet under the Fair Trading Act, $63,000, on Bond and Bond Limited after the company admitted breaching the Act by running a series of misleading advertising campaigns.

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Ford admits Fair Trading breach pays refunds

5 May 1997

As part of a settlement with the Commerce Commission, Ford Motor Company of New Zealand Limited has admitted its Shoctober promotion breached the Fair Trading Act because extra costs were not explained, and is paying refunds to 121 customers.

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The Fair Trading Act A Guide for Advertisers and Traders

1 May 1997

The Commerce Commission has published what is the only detailed plain English guide to the Fair Trading Act intended specifically for people running their own businesses, managers and anyone else responsible for day-to-day business decisions.

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April 1997

Bond and Bond increased prices for special promotion

29 April 1997

Bond and Bond Limited admitted in the Christchurch District Court that a series of advertising campaigns running for four months was misleading and breached the Fair Trading Act.

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Commission warns pharmacists about weight loss products

6 April 1997

As part of an investigation focusing on weight loss products, the Commerce Commission has warned pharmacists that they risk breaching the Fair Trading Act if they promote weight loss products that do not work.

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March 1997

Commission investigations in food industry

25 March 1997

The Commerce Commission is continuing investigations and enforcement action in the food industry, Commission Fair Trading Manager Rachel Leamy told industry representatives today.

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Factual statements about food can be misleading

18 March 1997

The conviction of Pacific Dunlop Holdings (NZ) Limited for making misleading claims about Plumrose Light Deli Ham sets a significant precedent for the food industry - a factually correct statement can still be misleading and breach the Fair Trading Act.

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Electronic commerce raises Fair Trading issues

17 March 1997

Electronic commerce is giving the Commerce Commission many new enforcement issues to solve, but the scams and misrepresentations appear to be much the same as those made via traditional media.

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Pyramid selling warning

12 March 1997

As the Commerce Commission begins court action against two New Zealand based pyramid selling schemes, it is warning people that pyramid selling is illegal.

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Rotorua businesses to meet Commerce Commission and Ministry of Consumer Affairs

12 March 1997

The Commerce Commission and Ministry of Consumer Affairs are inviting all Rotorua business people to a seminar about the Fair Trading Act and the Consumer Guarantees Act on Wednesday March 19.

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Commission targets weight loss products

2 March 1997

Claims made about weight loss products are going to get close scrutiny from the Commerce Commission over the next few months.

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February 1997

Wanganui businesses to meet Commerce Commission and Occupational Safety and Health

26 February 1997

The Commerce Commission and the Department of Labour are inviting all Wanganui business people to a seminar about the Fair Trading Act and the Health and Safety in Employment Act on Wednesday March 5.

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Judge said Edge knew components were dummies

24 February 1997

The Commerce Commission said today that it is concerned that misleading statements have been reported about the Edge Computer Ltd prosecution.

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Record fine imposed on Edge – $50,000

20 February 1997

The Wellington District Court today imposed the highest single fine yet under the Fair Trading Act, when it fined Edge Computer Ltd $50,000 for selling computer components which did not have the memory claimed for them.

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Edge sold dummy computer motherboards

17 February 1997

In what is believed to be the first successful prosecution of its type in the world, Edge Computer Ltd has admitted breaching the Fair Trading Act by selling computer motherboards which did not have the memory claimed for them.

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Boots Healthcare identifies problem with sunscreen label

14 February 1997

Sunscreen manufacturer, Boots Healthcare, voluntarily came to the Commerce Commission because it was concerned about the labelling of one of its own sunscreens, Tripleguard SPF 50+.

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