Commerce Commission
Encyclopedia
The Commerce Commission is a New Zealand
government agency charged with enforcing legislation that promotes competition
in the country's market
s and prohibits misleading and deceptive conduct by traders. The Commission also enforces pieces of legislation specific to the telecommunication
s, dairy
and electricity industries.
In ensuring compliance with the legislation it enforces, the Commission undertakes investigation and where appropriate takes court action; considers applications for authorisation in relation to anti-competitive behaviour
and mergers; and makes regulatory decisions relating to access to telecommunications network
s and assessing compliance with performance thresholds by electricity lines businesses.
. The purpose of the act is to promote competition in New Zealand's market economy
. It prohibits conducts that restricts competition (restrictive trade practices) and the purchase of a business's shares or assets if that purchase leads to a substantial lessening of competition in the market.
was developed with the Commerce Act to encourage competition and to protect consumers from misleading and deceptive conduct and unfair trading practices. The Act applies to all aspects of the promotion and sale of goods and services
– from advertising and pricing to sales techniques and finance agreements.
The Act also applies to pyramid schemes, and provides for consumer information standards covering country of origin (clothing and footwear labelling, fibre content labelling, care labelling and supplier information notices relating to motor vehicles. The Commission also enforces six product safety standards
relating to baby walkers, pedal bicycles, flammability
of children’s night clothes, cigarette lighters, household cots and toys for children aged up to three years.
and other parties.
s with respect to disclosure requirements; calculation of fees, charges and interest
; and oppressive conduct. It also enables consumers to seek reasonable changes to credit contracts on the grounds of unforeseen hardship. The part of the Act which relates to oppressive contracts known as buy-back transactions was enacted on 14 October 2003 and was already enforced by the Commission prior to April 2005.
leniency policy to assist in the investigation of anti-competitive arrangements between competitors that are often secret and difficult to detect. The Commission wishes to encourage those involved in cartel conduct to report the cartel to the Commission. The Commission will grant immunity from Commission-initiated proceedings to the first person involved in a cartel to come forward with information and formally apply for leniency, provided they co-operate fully with the Commission in its investigation and prosecution of the cartel.
The leniency policy applies to arrangements between competitors which substantially lessen competition. It does not include conduct which amounts to a company taking advantage of a substantial degree of market power.
The current members are:
Dr Mark Berry - Chair
Dr Ross Patterson - Telecommunications Commissioner
Anita Mazzoleni - Commissioner
Susan Begg - Commissioner
Peter JM Taylor - Commissioner
Donal Curtin - Commissioner
Patrick Duignan - Commissioner
Gowan Pickering - Associate Commissioner
David Caygill - Associate Commissioner
Helen Cull QC - Cease and Desist Commissioner
Sir Ian Barker QC - Cease and Desist Commissioner
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
government agency charged with enforcing legislation that promotes competition
Competition (economics)
Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services...
in the country's market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
s and prohibits misleading and deceptive conduct by traders. The Commission also enforces pieces of legislation specific to the telecommunication
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...
s, dairy
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...
and electricity industries.
In ensuring compliance with the legislation it enforces, the Commission undertakes investigation and where appropriate takes court action; considers applications for authorisation in relation to anti-competitive behaviour
Anti-competitive practices
Anti-competitive practices are business or government practices that prevent or reduce competition in a market .- Anti-competitive practices :These can include:...
and mergers; and makes regulatory decisions relating to access to telecommunications network
Telecommunications network
A telecommunications network is a collection of terminals, links and nodes which connect together to enable telecommunication between users of the terminals. Networks may use circuit switching or message switching. Each terminal in the network must have a unique address so messages or connections...
s and assessing compliance with performance thresholds by electricity lines businesses.
Commerce Act 1986
The Commerce Commission was established by the Commerce Act 1986Commerce Act 1986
The Commerce Act 1986 is a statute of New Zealand. It prohibits conduct that restricts competition and purchase of shares or assets where that would lessen competition in a market....
. The purpose of the act is to promote competition in New Zealand's market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
. It prohibits conducts that restricts competition (restrictive trade practices) and the purchase of a business's shares or assets if that purchase leads to a substantial lessening of competition in the market.
Fair Trading Act 1986
The Fair Trading Act 1986Fair Trading Act 1986
The Fair Trading Act 1986 is a statute of New Zealand. Its purpose is to encourage competition and to protect consumers from misleading and deceptive conduct and unfair trade practices.The Fair Trading Act provides for consumer information standards....
was developed with the Commerce Act to encourage competition and to protect consumers from misleading and deceptive conduct and unfair trading practices. The Act applies to all aspects of the promotion and sale of goods and services
Goods and services
In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....
– from advertising and pricing to sales techniques and finance agreements.
The Act also applies to pyramid schemes, and provides for consumer information standards covering country of origin (clothing and footwear labelling, fibre content labelling, care labelling and supplier information notices relating to motor vehicles. The Commission also enforces six product safety standards
Safety standards
Safety standards are standards designed to ensure the safety of products, activities or processes, etc. They may be advisory or compulsory and are normally laid down by an advisory or regulatory body that may be either voluntary or statutory...
relating to baby walkers, pedal bicycles, flammability
Flammability
Flammability is defined as how easily something will burn or ignite, causing fire or combustion. The degree of difficulty required to cause the combustion of a substance is quantified through fire testing. Internationally, a variety of test protocols exist to quantify flammability...
of children’s night clothes, cigarette lighters, household cots and toys for children aged up to three years.
Electricity Industry Reform Act 1998
The Commission has an enforcement role under the Electricity Industry Reform Act 1998. The Act prohibits cross involvement between electricity lines businesses with either electricity retail or generation activities.Dairy Industry Restructuring Act 2001
The Commission has both enforcement and adjudication roles under the Dairy Industry Restructuring Act 2001. The Act provides for the Commission to undertake enforcement action and requires the Commission to issue determinations to resolve disputes between FonterraFonterra
Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by almost 10,500 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ$19.87 billion, is New Zealand's largest company.- History :In...
and other parties.
Telecommunications Act 2001
The Telecommunications Act 2001 regulates the supply of telecommunications services in New Zealand. It requires the Commission to make determinations in respect of designated access and specified services and to undertake costing and monitoring activities relating to the Telecommunications Service Obligations.Credit Contracts and Consumer Finance Act 2003
The Commission assumed responsibility for enforcing the major provisions of the Credit Contracts and Consumer Finance Act 2003 on 1 April 2005. This Act repealed the Credit Contracts Act 1981 and the Hire Purchase Act 1971, placing obligations on creditorCreditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...
s with respect to disclosure requirements; calculation of fees, charges and interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
; and oppressive conduct. It also enables consumers to seek reasonable changes to credit contracts on the grounds of unforeseen hardship. The part of the Act which relates to oppressive contracts known as buy-back transactions was enacted on 14 October 2003 and was already enforced by the Commission prior to April 2005.
Cartel leniency policy
The Commission has a cartelCartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
leniency policy to assist in the investigation of anti-competitive arrangements between competitors that are often secret and difficult to detect. The Commission wishes to encourage those involved in cartel conduct to report the cartel to the Commission. The Commission will grant immunity from Commission-initiated proceedings to the first person involved in a cartel to come forward with information and formally apply for leniency, provided they co-operate fully with the Commission in its investigation and prosecution of the cartel.
The leniency policy applies to arrangements between competitors which substantially lessen competition. It does not include conduct which amounts to a company taking advantage of a substantial degree of market power.
Commission members
Commission members are appointed for their knowledge of, and experience in, areas relevant to the Commission’s interests. The Commission comprises a chair and deputy chair, and up to three members. The Telecommunications Act created the position of Telecommunications Commissioner. Associate members and up to two cease and desist members may also be appointed.The current members are:
Dr Mark Berry - Chair
Dr Ross Patterson - Telecommunications Commissioner
Anita Mazzoleni - Commissioner
Susan Begg - Commissioner
Peter JM Taylor - Commissioner
Donal Curtin - Commissioner
Patrick Duignan - Commissioner
Gowan Pickering - Associate Commissioner
David Caygill - Associate Commissioner
Helen Cull QC - Cease and Desist Commissioner
Sir Ian Barker QC - Cease and Desist Commissioner