KiwiRail Limited t/a Interislander

KiwiRail has been warned for likely breaches of section 13(i) of the Fair Trading Act due to representations it made to consumers about their rights to compensation when a ferry service had been delayed or cancelled. This is because from at least August 2020 until April 2023, KiwiRail’s Conditions of Carriage purported to exclude its liability to affected consumers for loss or damage occurring from ferry delays or cancellations in circumstances where rights to compensation may be available in law. Also, from at least between February and May 2023, KiwiRail represented to some consumers that it was not liable for compensation because certain cancellations or delays of its ferry services were caused by events outside of its control. However, KiwiRail subsequently accepted that at least one of those events was within its control. The Commission has also accepted court enforceable undertakings from KiwiRail to record its commitment to reconsider consumer compensation claims, to remediate all affected consumers, and to ensure ongoing compliance with the Fair Trading Act and the Consumer Guarantees Act.