Making a complaint

If you're unhappy with a product or service, first try to sort it out with the trader concerned. But if you can't make headway, you or anyone else can take criminal action under the Fair Trading Act.

You can also apply to the High Court for an injunction to stop the Act being breached.

The best option for consumers with small claims is civil action, most often through a Disputes Tribunal. They can hear cases for claims up to $15,000 or $20,000 if both parties agree. Although you can take claims for specific misrepresentations under the Act (such as about the price or quality of goods), bizarrely, cases under the general prohibition on misrepresentation can't be heard in tribunals.

A tribunal can award civil damages, which could include your getting compensation or your money back. But only the courts can impose fines. For more information on taking a claim, see Disputes Tribunals.

You could also call the Commerce Commission.

The Commerce Commission

The Act is enforced by the Commerce Commission, a government agency. The Commission can take traders to court if it thinks they have breached the Act.

The Commission doesn't act on every complaint it receives, but it does log all complaints, and this log provides a guide to deciding which cases it will take up.

The Commission generally becomes involved where there is a blatant abuse of the law, or there is significant detriment to either traders or consumers, or a precedent needs to be established.

Penalties under the Act

A trader who breaches the general prohibition against misrepresentation can be ordered to stop, to issue corrective advertising and to pay compensation. These are civil penalties, and any action must be taken within three years after the loss or damage caused by the breach was discovered (or ought reasonably to have been discovered).

If a trader contravenes the other provisions of the Act, criminal penalties may also apply. Companies can be fined up to $200,000 and individuals up to $60,000, plus costs. Criminal proceedings may be taken up to three years from the time the alleged breach occurred.