Commerce Commission

The Commerce Commission exists to enforce a range of regulatory regimes, including the Fair Trading Act and a number of standards set by regulations under the Act so that producers and consumers benefit from healthy competition.

The Commission provides information to the public about its activities to promote a sound understanding of its approach to enforcement and to make sure people are aware of their rights and obligations under the act.

The Commission may initiate an investigation into an alleged breach either as a result of information it receives from a member of the public or as a result of its own surveillance activities.

The Commission may conclude an investigation in a number of ways, including:

• Notifying businesses that their behaviour may be a risk of breaching the Act and providing information about their obligations to comply with the Act;
• Issuing a formal warning to businesses that their behaviour is at risk of or, in the Commission's view, is in breach of the Act;
• Entering into settlements with businesses that the Commission considers have breached the Act. Settlements involve the business acknowledging that it has breached the law and changing the way it operates, and may include a variety of other things such as compensation and advertising or publicity correcting the breach;
• Court action, where the Commission considers it is the appropriate method of dealing with a particular (alleged) breach of the Act. Injunctions, fines, compensation orders and orders for disclosure or corrective advertising may, at the discretion of the court, be appropriate.