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.
"Whether we are legally obligated to compensate is one thing but I believe morally, we probably should.
"That's what is fair and just."
Both councillors said they would be pushing for a review of the policy, which they labelled "unworkable".
"It appears they have missed out on the big dollars over the holiday period because council's left hand does not know what the right hand is doing. It is extremely embarrassing," Mr Mitchell said.
The mobile shops policy was very grey, he said.
"And draconian. It is unworkable and hard to understand.
"To expect vendors to pick up and move on every 15 minutes is crazy. "
Mr Morris described the lack of communication as "a mess" and said council staff must also reflect the change sought by voters after the election.
Mr Morris said he would call for weight to be placed in favour of local vendors when the policy was reviewed.
However, Mayor Stuart Crosby said the policy had been reviewed numerous times over the past 20 years.
"The previous council made the changes because they felt that a mobile shop had to be just that," he said. "They cannot be allowed to stay at a site for weeks on end but the policy can be put back onto the review schedule if need be."
Ms Lawrence said she hoped council would discuss all proposed changes with vendors in the future to save others heartbreak.
"We would like to see more transparency around the tender process, and some clarity over where we can park and when."
Vendors were discussing their legal options with lawyers this week, Ms Lawrence said.
Mr Crosby said council would try to keep the issue out of court through mediation.