The Commerce Commission has wide-ranging powers to investigate potential breaches of the Fair Trading Act 1986. Understanding the investigation process is essential for any business that receives a Commerce Commission inquiry.
The Commerce Commission is New Zealand's primary competition and consumer protection regulator. It has broad powers to investigate potential breaches of the Fair Trading Act 1986 (FTA), the Commerce Act 1986, and other legislation.
What triggers a Commerce Commission investigation?
Commerce Commission investigations can be triggered by a range of factors, including complaints from consumers or competitors, media reports, referrals from other regulators, or the Commission's own market monitoring activities.
The investigation process
A Commerce Commission investigation typically begins with the Commission gathering information. It may issue a formal notice requiring a business to produce documents or information, or it may conduct interviews with witnesses. The Commission has the power to enter and search premises in some circumstances.
Potential outcomes
A Commerce Commission investigation can result in a range of outcomes, from no further action to a formal warning, an enforceable undertaking, or civil or criminal proceedings. The penalties for breaches of the Fair Trading Act can be significant — up to $200,000 for individuals and $600,000 for companies per breach.
What businesses should do
If your business receives a Commerce Commission inquiry or information request, you should seek specialist legal advice immediately. An experienced regulatory defence lawyer can help you understand your obligations, manage the investigation process, and develop a strategy that protects your interests.