25.11.2019

Complaints are on the rise: A snapshot of complaints made to the Commerce Commission

The Commerce Commission (Commission) has recently released a snapshot of the complaints it has received in the year to 30 June 2019.  A copy of the Commission’s report can be viewed here.

The snapshot reveals the following key points:

  1. Complaints to the Commission are on the rise.  There was an increase of over 1500 complaints made under the Fair Trading Act 1986 (FTA) compared to the previous year.
  2. The majority of complaints related to telecommunications retail service providers and online ticket reselling services.  However, there were also a significant number of complaints in relation to domestic appliance retailers, motor vehicle retailers and the construction industry.
  3. There has been an 80% increase in complaints relating to online retail, which now makes up approximately half of all complaints made to the Commission under the FTA.
  4. There were a total of 314 complaints made under the Credit Contracts and Consumer Finance Act 2003 (CCCFA) in relation to debt collection processes, responsible lending obligations, disclosure requirements, and the level of credit fees.

The snapshot provides a timely reminder to all businesses engaged in trade and offering consumer credit of the importance of understanding and complying with the statutory obligations under the FTA and CCCFA.  The time and cost responding to complaints made to the Commission can be significant for any business.  The cost of getting it wrong and being found in breach of the FTA or CCCFA can be even more significant.  Businesses can be liable for penalties of up to $600,000 for each individual breach, not to mention the reputational damage that may be suffered.

If you have received a customer complaint under the FTA or CCCFA, or would like advice to ensure you are complying with your obligations, please get in touch.

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Increase in Sick Leave Entitlement
From Saturday 24 July 2021, the minimum entitlement to sick leave increases from 5 to 10 days in each entitlement year.
23.07.2021 Posted in Business Advice & Employment
Liquidators’ Powers: Successful application under section 266 of the Companies Act to examine former director
Liquidators have wide-ranging powers under the Companies Act 1993 (Companies Act), including the power to request directors, shareholders or any other relevant person to assist in the liquidation of a...
19.07.2021 Posted in Company & Insolvency and Restructuring
Enforceability of limitation clauses
Construction contracts and contracts for professional services typically include a range of provisions which seek to allocate risk between the parties, and limit potential liability to be attributed to one party.
NZS 3910 Court Judgment, With Implications
The High Court decision in Hellaby Resource Services Ltd v Body Corporate 197281 [2021] NZHC 554 is a rare NZS 3910 decision, with implications for the construction sector. 
09.07.2021 Posted in Construction
ASB Showgrounds liquidation – An iconic venue in strife
The events industry has been strongly affected by Covid-19.
The Shipping Law Review 2021 8th Edition
The Hesketh Henry marine team pen the New Zealand chapter of The Shipping Law Review.
02.07.2021 Posted in Maritime
At first glance: Overseas Investment Amendment Bill (No 3) 2021
The Overseas Investment Amendment Bill (No 3) (Bill) received royal assent on 24 May 2021
Send us an enquiry
For expert legal advice, please complete the form below or call us on (09) 375 8700.
  • This field is for validation purposes and should be left unchanged.
-->