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
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
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
Shaw Personal Finance Company Limited CCCF Act 17 We have warned Shaw Personal Finance Company 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
Bayley Corporation Limited Commerce Act 27 via s 30 Bayley Corporation Limited was ordered to pay a penalty of $2.2m following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me. Judgment 2016
Success Realty Limited Commerce Act 27 via s 30 Success Realty Limited was ordered to pay a penalty of $900,000 following admissions they breached s 27 via s 30 of the Commerce Act by entering into and giving effect to a price fixing agreement with four other real estate companies to pass on to vendors the cost of advertising properties on Trade Me. Success operates in the Hamilton region under the Bayleys brand. Judgment 2016
Budget Loans Limited and Evolution Finance Limited Fair Trading Act 13(e), 13(i) Budget Loans Limited and Evolution Finance Limited have been found guilty in the Auckland District Court on 106 charges under the Fair Trading Act 1986. The companies were found guilty of representations made to 18 borrowers while enforcing loan contracts. the Commission filed 125 charges against Budget Loans and Evolution Finance. At a hearing in May 2016 the defendants sought to have 122 of those charges dismissed. In a separate judgment the Court ruled that 19 charges should be dismissed. Judgment 2016
Microbe Cars Limited t/a Microbecars Fair Trading Act 28(1) The Commission issued two infringement notices as it had reasonable grounds to believe that Microbe Cars Limited t/a Microbecars, 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
Karu Trading Company Limited Fair Trading Act 28(1) The Commission issued two Infringement Notices as it had reasonable grounds to believe that Karu Trading Company Limited breached section 28(1) of the Fair Trading Act by failing to comply with the requirements of the Consumer Information Standards (Country of Origin Labelling) Regulations 2000 and the Consumer Information Standards (Care Labelling) Regulations 2000. Infringement – paid 2016
The Green People Company Limited Fair Trading Act 12A, 13(e) The Green People Company Ltd (Green People) were warned for conduct that could breach sections 13(e) and 12A of the Fair Trading Act 1986 in respect of representations made on their 'Green People Organic Children Sun Lotion Medium 25SPF' product. In particular the representations concerned the 'water repellent' quality of the product. The Commission also advised Green People of its concerns about the "FAIRLY TRADED" and "broad spectrum UVA/UVB protection" representations made on the same product. Warning letter 2016
Gerard Thomson Fair Trading Act 13(i) Gerard Thomson pleaded guilty to three breaches of section 13(i) of the Fair Trading Act 1986 by making false or misleading representations concerning the existence of guarantees in relation to three building contracts. He was sentenced to pay a total reparation amount of $16,700 and a total fine of $12,800. Judgment 2016
Godfrey Hirst NZ Limited Commerce Act 67 High Court decision rejecting Godfrey Hirst’s appeal Judgment 2016
Betterlife Corporation Limited CCCF Act 17, 32(1)(c) Betterlife Corporation Limited was ordered to pay a penalty of $73,500 following admissions it had breached ss 17 and 32(1)(c) of the CCCFA as its consumer credit contracts failed to provide adequate disclosure and was not clear, concise and presented in a manner likely to bring the required information to the attention of a reasonable person. Judgment 2016
Goodring Company Limited CCCF Act 17, 32(1)(c) Goodring Company Limited was ordered to pay a penalty of $98,000 following admissions it breached ss 17 and 32(1)(c) of the CCCFA as its consumer credit contracts failed to provide adequate disclosure and the disclosure was not provided in a clear, concise way, or presented in a manner likely to bring the required information to the attention of a reasonable person. In addition, Goodring Company Limited admitted breaching ss 11(1)(a) and 11(1)(b) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 for having knowingly failed to be registered on the Financial Service Providers Register and for not being a member of an approved dispute resolution scheme. Judgment 2016