Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fair Trading Act breach

6 December 2004-05/071

Fruit and produce wholesaler admits Fair Trading Act breach in settlement with Commerce Commission

Fruit and produce wholesaling and marketing company Freshmax Limited has admitted it breached the Fair Trading Act in a settlement with the Commerce Commission, following an investigation into the way in which it has been invoicing its grower suppliers using its Auckland Wholesale warehouse.

The investigation found that in November 2001, Freshmax introduced a warehousing fee of 50 cents per unit of produce through its Auckland wholesale warehouse for consignment trading, but failed to adequately disclose this to growers, simply deducting this fee off the stated selling price for the produce. The fee was not separately disclosed on the statement provided to growers.

Director of Fair Trading Deborah Battell said that although the Freshmax Terms and Conditions Relating to Suppliers allowed for the deduction of site handling fees, the warehouse charge was not specifically introduced into the Terms and Conditions until September 2002, and not notified in writing to growers until November 2003.

"In the Commission's view, growers could have been misled about the price of the service they were providing as grower statements did not refer to these fees. Although Freshmax has stated its sales representatives were instructed to inform growers of the charge verbally, the Commission considers this was not sufficient notice. Nor did the statements indicate that the stated selling price for the grower's produce was the price after deduction of the fee."

Ms Battell said this case sent a clear message to businesses in general that customers must be formally advised if there are any changes to the costs of services.

"Additional charges should be itemised on customer statements and should not just be slipped onto an invoice without formal warning or explanation," she said.

As part of the settlement reached with the Commission, Freshmax has undertaken to review its own compliance programme on the Fair Trading Act, and to fund an industry wide seminar on compliance with the Act for members of the produce industry.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news