Fair Trading Act 1986

Enforcement and remedies - Offences

40: Contraventions of provisions of Parts 1 to 4A an offence

You could also call this:

“Breaking certain rules in the Fair Trading Act can lead to fines”

If you break certain rules in Parts 1, 3, or 4 of the Fair Trading Act, you can get in trouble. If you’re a person, you might have to pay up to $200,000. If you’re a company, you might have to pay up to $600,000.

If you break the rule in section 24, you might have to pay up to $600,000, no matter if you’re a person or a company.

If you break rules in Part 2 or Part 4A, the fines are less. A person might have to pay up to $10,000, and a company might have to pay up to $30,000.

If you break the same rule many times around the same time, you won’t have to pay more than the biggest fine for breaking the rule once.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM96990.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection

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“The Disputes Tribunal can help with some problems under this law”


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40A: Additional penalty for contravention of section 24 involving commercial gain, or

“Extra punishment for making money by breaking Fair Trading rules”

Part 5 Enforcement and remedies
Offences

40Contraventions of provisions of Parts 1 to 4A an offence

  1. Every person who contravenes a provision of Part 1 (except sections 9, 14(2), 23, or 24), Part 3, or Part 4 commits an offence and is liable on conviction,—

  2. in the case of an individual, to a fine not exceeding $200,000; and
    1. in the case of a body corporate, to a fine not exceeding $600,000.
      1. Every person who contravenes section 24 commits an offence and is liable on conviction to a fine not exceeding $600,000.

      2. Every person who contravenes a provision of Part 2 or Part 4A commits an offence and is liable on conviction,—

      3. in the case of an individual, to a fine not exceeding $10,000; and
        1. in the case of a body corporate, to a fine not exceeding $30,000.
          1. Where a person is convicted, whether in the same or separate proceedings, of 2 or more offences in respect of contraventions of the same provisions of this Act and those contraventions are of the same or a substantially similar nature and occurred at or about the same time, the aggregate amount of any fines imposed on that person in respect of those convictions shall not exceed the amount of the maximum fine that may be imposed in respect of a conviction for a single offence.

          2. Repealed
          Notes
          • Section 40 heading: amended, on , by section 27(1) of the Fair Trading Amendment Act 2013 (2013 No 143).
          • Section 40(1): replaced, on , by section 27(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
          • Section 40(1A): inserted, on , by section 8(2) of the Fair Trading Amendment Act 2003 (2003 No 31).
          • Section 40(1A): amended, on , by section 27(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
          • Section 40(1A): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
          • Section 40(1B): inserted, on , by section 27(4) of the Fair Trading Amendment Act 2013 (2013 No 143).
          • Section 40(3): repealed, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).