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Commerce Act 1986

Consumer protection in relation to water services - Other measures relating to protecting consumers of water services - Compliance

57ZK: When court may make pecuniary penalty order

You could also call this:

"When you have to pay a penalty for breaking a service quality rule"

Illustration for Commerce Act 1986

The court can order you to pay a pecuniary penalty to the Crown if you have broken a Commission service quality code. You can also be ordered to pay a penalty if you tried to break a code or were involved in someone else breaking a code. The court must be satisfied that you have done one of these things before they can order you to pay a penalty.

If the court orders you to pay a pecuniary penalty, you cannot also be fined under section 57ZP for the same thing. This means you will only have to pay one penalty, not both.

The court's decision is based on whether you have broken a Commission service quality code or not. If you have, you might have to pay a penalty to the Crown.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1506115.

Topics:
Money and consumer rights > Consumer protectionBusiness > Fair trading
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57ZJ: Commission must monitor compliance, or

"The Commission checks if companies are following the rules to keep everything fair."

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57ZL: Maximum amount of pecuniary penalty, or

"Maximum penalty for breaking service quality rules is $300,000"

Part 4AConsumer protection in relation to water services
Other measures relating to protecting consumers of water services: Compliance

57ZKWhen court may make pecuniary penalty order

  1. The court may, on the application of the Commission, order a person to pay to the Crown a pecuniary penalty if the court is satisfied that the person has—

  2. contravened a Commission service quality code; or
    1. attempted to contravene, or been involved in a contravention of, a Commission service quality code.

      1. A supplier may not be liable to both a pecuniary penalty under this section and a fine under section 57ZP in respect of the same conduct.

      Compare
      Notes
      • Section 57ZK: inserted, on , by section 15 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).