The Commerce Commission and Ministry of Consumer Affairs are inviting all Dunedin business people to a seminar about the Fair Trading Act and the Consumer Guarantees Act on Wednesday November 13.

The Chief Investigator from the Commission's Christchurch office, Stuart Wallace, said he hopes there will be an excellent response from business people.

"We will be talking about two of the most important laws that affect businesses every day, and, afterwards, there will be plenty of time for questions and informal discussion over finger food," Mr Wallace said.

As well as giving the seminar, Commission and Ministry staff will be in Dunedin from Monday to Wednesday visiting shops and talking to owners and managers.

Included in the group are Julian Crane from the Ministry's Trade Measurement Unit and Elise Webster from its Consumer Safety Section. They will be talking to business people and shop staff about issues that have come up in their work.

"This is a great opportunity for business people to increase their knowledge of the law," Mr Wallace said. "Neither the Commission nor the Ministry has an office in Dunedin, and it is more difficult for business people to make contact with us, so we are coming to them.

"It is an education exercise. We want people to understand how to operate within the law to protect themselves and their customers."

The Ministry's Trade Measurement Unit wants to ensure consumers receive the correct quantity of firewood from merchants. Mr Crane, from Christchurch, will be encouraging firewood merchants to have firewood containers certified. He said that the scheme gives confidence to consumers who are able to check that they are receiving the quantity of firewood that they have paid for.

The Ministry also wants to clear up some misconceptions both consumers and retailers may have over the Consumer Guarantees Act. Senior Advisor Kim Morton said there can be confusion between the manufacturer's warranty and consumers' rights under the Act.

"Retailers cannot contract out of the Consumer Guarantees Act," she said.

Seminar details

Venue: Southern Cross Hotel, Cr Princes and High Streets, Dunedin

Date: November 13

Time: 6pm - 8.15pm (doors open 5.30pm)

Cost: $20 (inc. GST) per head includes finger food (no charge for media)

Cheques to Commerce Commission, PO Box 25-193, Christchurch, Attention Frances Miller (door sales will be available on the night)

Speakers: Commerce Commission Fair Trading Manager Rachel Leamy

Ministry of Consumer Affairs Senior Advisor Kim Morton

Ministry of Consumer Affairs Trade Measurement Officer Julian Crane

Commerce Commission staff in Dunedin November 11-13

Chief Investigator Stuart Wallace, Investigators Simon O'Callaghan and Graeme Wood, and Projects Officer Estelle Le Lievre. Fair Trading Manager Rachel Leamy will be in Dunedin on Wednesday afternoon and at the seminar.

Ministry of Consumer Affairs staff in Dunedin November 11-13

Senior Advisor Kim Morton (head office, Wellington), Senior Policy Advisor Elise Webster (head office, Wellington) and Trade Measurement Officer Julian Crane (Christchurch office).

Media contacts

Commerce Commission

Chief Investigator Stuart Wallace, Dunedin November 11-13, 021 668 219,

Christchurch (03) 371 0297

Fair Trading Manager Rachel Leamy, Dunedin at the seminar, Wellington (04) 498 0908

Communications Officer Vince Cholewa, work (04) 498 0920, home (04) 479 1432

Ministry of Consumer Affairs

Senior Advisor Kim Morton, Dunedin November 11-13 025 465 410 Wellington (04) 474 2750

Senior Policy Advisor Elise Webster, work (04) 474 2891, home (04) 389 4451

Trade Measurement Officer Julian Crane Dunedin November 11-13 025 454 962,

Christchurch (03) 343 9828

Communications Manager Vince Calcinai, work (04) 474 2750, home (04) 389 1787

Background

Commerce Commission

The Commerce Commission exists to bring about awareness and acceptance of, and compliance with, the Commerce and Fair Trading Acts.

Fair Trading Act

The Fair Trading Act prohibits false or misleading representations, and gives the Minister of Consumer Affairs the power to make product safety and consumer information standards mandatory. It generally applies before a sale is made.

There are three product safety standards made mandatory by the Fair Trading Act. They are for:

· bicycles

· fire safety of children's night clothes

· toys for children aged up to three years (to prevent choking)

There are three consumer information standards made compulsory by the Act. They are:

· country of origin labelling for clothing and footwear

· fibre content of textile goods

· care labelling of textile goods

Recent Commission action in Dunedin includes:

A jeweller and two of its senior staff being prosecuted and fined for misleading advertising of a sale, and an appliance store changing its advertising as part of a settlement with the Commission. The appliance store had advertised a "free" offer that in the Commission's view was not free.

Other recent action by the Commission includes:

· a car dealer was fined $50,000 for calling used cars new

· a retailer was fined $25,000 for three charges of selling unsafe bicycles

· a lawyer and his company were fined $20,000 for misleading land buyers

· a bank was fined $16,000 for using misleading mortgage ads

· the Court of Appeal defined when so called "free" promotions are misleading

· the Auckland District Court ruled that in interest free promotions, the interest free price must be the same as the advertised cash price

· the Christchurch District Court ruled that "we will pay your interest" promotions are the same as interest free promotions

Education

The Commission puts considerable effort into educating business people about the Fair Trading Act. As well as media publicity, it holds seminars, visits areas where it has no office, provides speakers for conferences and works in particular with nation-wide traders. It also publishes two newsletters and a wide range of free pamphlets about the Acts it enforces.

Ministry of Consumer Affairs

The Ministry of Consumer Affairs exists to work with consumers and business to promote a fair and informed market place for consumers.

Consumer Advice Service

Provides advice to people with consumer problems. Advice is free. The Consumer Advice Service has offices in Auckland, Wellington and Christchurch and operates toll-free telephone numbers.

Works with business to ensure that companies comply with consumer law.

Information and education services

Provides information to consumers and to business about buying and selling goods and services eg leaflets, videos, booklets, education resources, seminars

Trade measurement

Checks that traders' weights and measures are accurate.

Enforces and administers the Weights and Measures Act 1987.

Consumer safety

Investigates reports of unsafe consumer products.

Advises the Minister of Consumer Affairs about the exercise of the Minister's powers under the Fair Trading Act.

Consumer policy

Advises the Government on laws, practices and policies that affect consumers.

Administers the Consumer Guarantees Act, Fair Trading Act, Hire Purchase Act, Unsolicited Goods and Services Act, Layby Sales Act.

The Consumer Guarantees Act

The Consumer Guarantees Act sets guarantees that goods or services must meet. It also provides remedies for failure to meet the guarantees. It generally applies after a sale is made.

Following private legal action by a customer, a Dunedin car dealer was found to have breached the Consumer Guarantees Act and was ordered by the High Court to take back a car it had sold and pay compensation.