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


Commission concludes Christchurch auctioneer investigation

1 December 2015

Commission concludes Christchurch auctioneer investigation

McCormack and McKellar Auctioneers have been issued with a warning by the Commerce Commission after failing to disclose they owned a Tom Esplin painting they were auctioning.

In addition, the Commission considered that McCormack and McKellar did not comply with legal requirements for auctions that came into force in June 2014. This was because it failed to give notice of whether:

• the vendor of the goods was selling the goods in trade as a supplier
• the sale was subject to a reserve price; and
• vendor bids were permitted.

This case came about after an on-site estate auction at a house on Harewood Road, Christchurch in October last year. Of 202 items listed in the auction catalogue, 130 were outside entries which were not part of the estate, including the painting.

The Commission’s investigation found that it was likely McCormack and McKellar breached the Fair Trading Act by misleading customers as to who the Tom Esplin painting belonged to. McCormack and McKellar created this impression by hanging the painting in the lounge of the home where the auction was taking place, leading the buyer to believe it was part of the estate. This impression was reinforced by McCormack and McKellar providing no information as to who the vendor was.

Commissioner Anna Rawlings said one of the important new requirements for auctioneers, which were introduced last year, is to ensure auction participants or potential participants are clearly informed as to whether the vendor is in trade.

“When the painting was purchased the auctioneers did not disclose that they owned the painting either through the catalogue or at the auction.”

McCormack and McKellar admitted owning the painting but said the alleged breaches were a genuine mistake. As a result of the Commission’s investigation they have reviewed their practices and updated their auction notice to comply with the requirements of the Act.

Ms Rawlings said the legislation relating to auctions was put in place to provide greater protection for consumers buying goods at auction.

“It is vital that consumers know whether they are buying goods from a trader because if they are, the Consumer Guarantees Act will provide them with rights if the goods turn out to be faulty.”

“This is a timely reminder that New Zealand auctioneers must ensure they meet all of their obligations,” Ms Rawlings said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>