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
Balmoral Homes Limited Fair Trading Act 13(f), 13(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
Affinity Car Rental New Zealand Limited, Euro Car Rental New Zealand Limited, Kylee Harris, Gary Harris Fair Trading Act 13(b), 13(d), 13(f), 13(g), 13(h), 13(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 Fair Trading Act 13(j) Alleged misleading representation as to the country of origin of soap. Fined $48,000. Judgment 2010
Shim's International Limited Fair Trading Act 13(a) Alleged misleading claims on the labels of the products. Fined $6,000. Judgment 2010
Korea Health Limited and Sang Rae Kim Fair Trading Act 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 Fair Trading Act 13(a), 28(1) Alleged that trader is providing false information in CINs Settlement 2010
Propertyfinance Securities Limited, New Zealand Guardian Trust Company Limited Fair Trading Act 13(g)

CCCF Act 51
Alleged misleading representation as to the full prepayment formula applied in that the creditor stated in the disclosure it would use the safe harbour formula when in fact it applied a formula based on bank swap rates Settlement 2010
Avanti Finance Limited CCCF Act 51, 54 Alleged that creditor was charging debtors an unreasonable estimate of creditor's loss upon full prepayment of their consumer credit contracts, and made misleading representations as to the characteristics of the formula used to calculate the estimate of loss. Creditor found not guilty in District Court in 2009. Commission appeal to High Court dismissed. Judgment 2010
Sunrise Motor Group Limited and Surya Kumar Fair Trading Act 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
Shell New Zealand Limited Fair Trading Act 10, 13(e) Alleged misleading representation re fuel economy formula Judgment – all charges dismissed 2010
Progressive Enterprises Limited Fair Trading Act 17(a) Alleged that offer made of prize with no intention to supply Judgment – Court of Appeal dismissed charges 2010
TMG Asia Pacific Pty Limited Fair Trading Act 11, 13(b), 13(g) 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 Fair Trading Act 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 Fair Trading Act 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 Fair Trading Act 13(j) Misrepresentation as to country of origin of product. Fined $15,000, court costs $260. Judgment 2010
Larry Roger Binns Fair Trading Act 11, 13(a) Misrepresentation of quality of timber. Fined $15,000, court costs $130. Judgment 2010
Foundation Custodians Limited CCCF Act 54 Alleged that creditor is charging an unreasonable estimate of its loss upon full prepayment and is in fact charging a different formula to that disclosed Settlement 2010
Dolbak Finance Limited Fair Trading Act 13(i)

CCCF Act 17
Alleged breach of s13 Fair Trading Act (continued enforcement of contracts where full disclosure has not been made) and ss17 and/or 32 of the CCCF Act. Litigation resolved. Guilty pleas to representative charges and sentencing. Convictions entered on 2 charges (one each act) and fined $1000 on each charge. Judgment 2010
Budget Loans Limited Fair Trading Act 13(i) 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 Credit (Repossession) 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) Fair Trading Act 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