The council has a moral obligation to compensate mobile vendors who suffered financial losses after a council stuff-up, a Tauranga city councillor says.
The city council made changes to their Mobile Shops Policy in September but failed to update their website or information brochures, leaving many vendors in the dark over the new rules - until staff booted them off sites.
The communication stuff-up forced one woman to sell her business and left others, including Papamoa couple Ricky Lee and Anna Lawrence thousands of dollars out of pocket because of the trade restrictions.
The vendors say they are investigating legal action over the incident, which Councillors Clayton Mitchell and Steve Morris have labelled "unfair" and "embarrassing".
"There has been no conversation around council about compensation but I understand vendors are talking to their lawyers," Mr Mitchell said.