Court ruling on misleading advertising welcomed

Friday, 25 November 2005, 4:02 pm
Press Release: New Zealand Government

The Government welcomes an Auckland District Court judgment that found Air New Zealand guilty of breaching the Fair Trading Act in terms of misleading customers about the full price of their advertised air fares, says Consumer Affairs Minister Judith Tizard.

The judgment, released yesterday, relates to 20 sample charges brought by the Commerce Commission against Air New Zealand concerning the advertising of air fares.

"I am pleased that 14 of the charges were proven. The District Court decision sends a message to businesses that they should clearly show the true cost of goods and services being sold," Judith Tizard said.

The Government agreed in its Confidence and Supply Agreement with New Zealand First to 'Review conditions applying to airline advertising to ensure that they are required to advertise the full costs of their offers'.

"The Government will wait with interest for the next stage of proceedings and any signals the Court sends once sentencing has occurred," said Judith Tizard.

ENDS

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