Regulator readies RWC business campaign

Photo / Sarah Ivey

New Zealand's competition and fair trading regulator is set to launch a campaign in a bid to clamp down on unfair business practice ahead of the Rugby World Cup.

The campaign headed by the Commerce Commission, will target misleading and anti-competitive behaviour which falls foul of the Fair Trading Act and the Commerce Act.

The Commerce Commission is expected to release more detail about the programme ahead of its launch in the next week or so.

To date 15 complaints have been lodged with the commission accusing businesses of dodgy business practice in industries related to the Rugby World Cup.

A Commerce Commission spokesperson said two of those complaints related to an overseas-based website, which was offering tickets to the Rugby World Cup as part of a travel package, despite not being authorised to do so.

That website is no longer operating, after the commission issued the company with a warning letter.

A rental car company, which the commission expects that many overseas visitors will use during the cup, has been the subject of two complaints.

The company was one of the two companies fined more than $40,000 in the Christchurch District Court last month for charging tourists for vehicle repairs that didn't exist, or were exaggerated.

Affinity Car Rental New Zealand and Euro Car Rental New Zealand were charged with 18 counts of breaching the act.

The commission warned that this kind of behaviour risked damaging New Zealand's reputation ahead of next year's Rugby World Cup.

Other complaints were raised about whether certain products could claim a "New Zealand made" status.

Of the remaining complaints, five required no further action and the others were being assessed by the commission, the spokesperson said.

The commission said it was not able to name any of the companies involved, while investigations were ongoing.

However, it would "continue to monitor Rugby World Cup issues relating to our legislation through both complaints from the public and its own monitoring," the spokesperson said.

Legislation introduced last year has provided for big fines and penalties for businesses who claim to be part of the world cup when they are not.

The Major Events Management Act 2007 is a special purpose legislation for the purposes of the Rugby World Cup, but which may also be used for other recognised major events.

Its aim was to ensure only licensed goods are produced for sale and protect official sponsors from so-called "ambush marketing".