The Commerce Commission (Commission) has announced its compliance and enforcement priorities for 2025, petitioned for heavy fines, and filed criminal charges, hinting on what’s to come if businesses breach the Fair Trading Act 1986 (Fair Trading Act) in the sectors and practices that the Commission focuses on. 

In December 2024, the Commission filed the first criminal charges for cartel conduct against two construction companies and two directors (for alleged bid rigging), and declared its intention to file criminal charges against major supermarket outlets (for alleged inaccurate pricing and misleading specials). The Commission also applied to the Court to impose heavy fines for deceptive and unfair conduct where consumers were sold extended warranties without their knowledge. 

The enforcement actions by the Commission indicate that it will pull no punches when it comes to its focus areas, affirming the statement from Commission Chair, John Small, that “businesses should be under no illusion the Commission will act”. 

What is the Commission’s approach to enforcement? 

The Commission’s general approach to enforcement is focussed on protecting consumers, which will continue in 2025. Moreover, for 2025, the Commission’s enforcement priorities have largely been shaped by public complaints lodged to the Commission, as well as market intelligence, investigative trends, and general economic trends. In 2024, the Commission received over 11,000 complaints, which has informed the Commission's decision to target industry sectors and practices that pose significant harm, alongside specific competition and consumer law issues. In the context of the significant cost-of-living pressures Kiwis currently face, the Commission emphasises that its focus areas target conduct that exacerbates these issues, especially those affecting vulnerable consumers. 

To strengthen enforcement, the Commission has also decided to allocate additional funds to its litigation fund so that the Commission can take on a greater volume of cases. The Commission aims to become a more proactive enforcer, with its consumer and competition teams focussing on priority areas. The Commission will continue its regulatory work in sectors like telecommunications, energy networks, fuel, dairy, the retail payment system, and airports. Ultimately, the Commission’s goal is to ensure a fair, competitive market that benefits both businesses and consumers in New Zealand.

What are the priority areas?

The Commission’s enduring priority areas are cartels, anti-competitive conduct, actions supporting the market and economic regulation functions, product safety, and protecting vulnerable consumers. The Commission prioritises these areas every year, due to the potentially significant impact on New Zealand consumers, businesses, and markets.

For 2025, the Commission will focus especially on the following priority areas: bid-rigging cartels, non-compete agreements (such as exclusivity arrangements and restrictive covenants), illegal online sales conduct, breaches in the grocery and telecommunications sectors, motor vehicle finance, and unconscionable conduct (which was introduced in 2022, so we will likely see the first enforcement activity in this space in 2025).

More specifically, the Commission will address cartels that affect public service and infrastructure contracts, as well as tackling non-compete agreements that unlawfully hinder competition. The Commission’s actions relating to illegal online sales practices will target fake reviews, misleading scarcity claims, drip pricing, and subscription traps, to safeguard consumers.

When addressing breaches in the grocery and telecommunications sectors, the Commission will focus on ensuring accurate pricing and promotions in supermarkets, and compliance with relevant codes and obligations. In the motor vehicle finance sector, the emphasis will be on enforcing responsible lending practices under the Credit Contracts and Consumer Finance Act 2003, particularly protecting vulnerable consumers. Moreover, the Commission will take action against any unconscionable conduct that significantly deviates from accepted standards and good conscience, aiming to prevent harm to consumers and businesses.

What does this mean for your business?

The Commission's enforcement priorities broadly target consumer protection and competition laws, accurate pricing, and fair conduct across multiple sectors. Every business in New Zealand needs to be vigilant about compliance with the laws and regulations that the Commission is responsible for enforcing (e.g., Fair Trading Act, Consumer Guarantees Act 1993, Commerce Act 1986, Credit Contracts and Consumer Finance Act 2003, among others). The Commission's announced enforcement priorities are helpful reminders for businesses to ensure that their conduct is compliant with the law, as non-compliance is more likely to result in legal action and penalties. 

Reach out to us if you have any questions about competition or consumer law. Our specialists are on hand to provide you practical advice on the potential impacts of the Report on you or your business. Get in touch with Hayley Miller, Campbell Featherstone, David Campbell, Patrick Glennie, Güneş Haksever, or Ashleigh Ooi if we can help you with competition and consumer protection issues in this space.

This article was written by Senior Associate, Güneş Haksever, and Law Graduate, Jacca Chang, in our Corporate and Commercial team.