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Telecommunications Act 2001

Enforcement - Enforcement of statutory and regulatory provisions - Pecuniary penalty

156L: Pecuniary penalty

You could also call this:

"Paying a fine if you break telecommunications rules"

Illustration for Telecommunications Act 2001

If you break certain rules in the Telecommunications Act, you might have to pay a fine to the government. The High Court can order you to pay this fine if you have not followed the rules without a good reason. You can be fined for not following rules in areas like Part 2A or Part 4AA.

When the court decides how much you should pay, they think about how much money you made from breaking the rules. They also consider the size of your service provider if you broke rules in Part 4AA. The amount of the fine depends on what rule you broke, but it can be up to $10 million for some breaches.

You can only be fined once for the same action, even if you broke multiple rules. The court uses the same standard of proof as in other civil cases. You can be taken to court within three years of the breach being discovered.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM127495.

Topics:
Business > Industry rulesMoney and consumer rights > Consumer protection
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"The Commission can share details about who broke the rules and got a fine under the Telecommunications Act."

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156M: Further penalty may be imposed for continuing breach, or

"You can get an extra fine for each day you keep breaking a telecommunications rule."

Part 4AEnforcement
Enforcement of statutory and regulatory provisions: Pecuniary penalty

156LPecuniary penalty

  1. The High Court may order a person to pay to the Crown any pecuniary penalty that the court determines to be appropriate if the High Court is satisfied, on the application of the Commission, that—

  2. the person has failed, without reasonable excuse, to comply with an undertaking under Part 2A; or
    1. the person has failed, without reasonable excuse, to comply with an undertaking under Part 4AA; or
      1. the person has committed a breach of any of the provisions set out in section 156A.

        1. In determining an appropriate remedy to be imposed under this section, the High Court must have regard to all relevant matters, including—

        2. the nature and extent of any commercial gain; and
          1. if subsection (1)(ab) applies, the size of the service provider.

            1. The amount of any pecuniary penalty for each act or omission must not exceed—

            2. $10 million for a breach referred to in subsection (1)(a); and
              1. $10 million for a breach referred to in subsection (1)(ab) (Part 4AA undertakings—UFB and RBI); and
                1. $10 million for a breach referred to in section 69L (failure to comply with or amend sharing arrangements); and
                  1. $10 million for a breach referred to in section 69T (line of business restrictions); and
                    1. $10 million for a breach referred to in section 69XG (Chorus undertakings); and
                      1. $1 million for a breach referred to in section 156A(fa) (obligation in section 69F to notify sharing arrangements); and
                        1. $1 million for a breach referred to in section 156A(fb) (obligation in section 69H to comply with Commission's investigation, etc, powers); and
                          1. $300,000 in any other case.

                            1. The standard of proof in proceedings under this section is the standard of proof that applies in civil proceedings.

                            2. Proceedings under this section may be commenced within 3 years after the matter giving rise to the breach was discovered or ought reasonably to have been discovered.

                            3. If conduct by a person constitutes a breach of 2 or more provisions referred to in subsection (1), proceedings may be commenced under this section against that person in relation to the breach of any 1 or more of those provisions.

                            4. However, no person is liable to more than 1 pecuniary penalty under this section for the same conduct.

                            Notes
                            • Section 156L: inserted, on , by section 54 of the Telecommunications Amendment Act (No 2) 2006 (2006 No 83).
                            • Section 156L(1)(a): amended, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 65(1) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(1)(ab): inserted, on , by section 83(1) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(2): substituted, on , by section 83(2) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(3)(ab): inserted, on , by section 83(3) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(3)(b): substituted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 65(2) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(3)(ba): inserted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 65(2) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(3)(bb): inserted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 65(2) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(3)(bc): inserted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 65(2) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                            • Section 156L(3)(bd): inserted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 65(2) of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).