Fair Trading Act 1986

Enforcement and remedies - Enforceable undertakings

46AA: Matters included in undertakings

You could also call this:

"What happens when someone promises to fix a problem with the law"

Illustration for Fair Trading Act 1986

You can make a promise to the Commission under section 46A of the Fair Trading Act 1986. This promise can include paying money to people who were affected by something that might have broken the law. It can also include paying the Commission's costs for investigating or taking action about something that might have broken the law. When the Commission accepts a promise that involves paying money, they must make some information public. This includes how much money is being paid and a brief description of what happened. If someone breaks the law, or helps someone else break the law, this is called a contravention. It can also include encouraging or being involved in something that breaks the law. The Commission can accept promises about these kinds of situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS537027.

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46A: Commission may accept undertakings, or

"The Commission can accept a written promise from you to follow the Fair Trading Act."


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46B: Enforcement of undertakings, or

"What happens if you break a promise to the Commerce Commission"

Part 5Enforcement and remedies
Enforceable undertakings

46AAMatters included in undertakings

  1. An undertaking under section 46A may, without limitation, include either or both of the following:

  2. an undertaking to pay compensation to any person or otherwise take action to avoid, remedy, or mitigate any actual or likely adverse effects arising from a contravention, or possible contravention, of this Act:
    1. an undertaking to pay to the Commission all or part of the Commission’s costs incurred in investigating, or bringing proceedings in relation to, a contravention, or possible contravention, of this Act.
      1. If the Commission accepts an undertaking that involves payment of compensation to any person, or payment of the Commission’s costs, the Commission must make the following information publicly available:

      2. the amount of the compensation, or of the Commission’s costs, that has been undertaken to be paid; and
        1. a brief description of the circumstances and nature of the contravention, or possible contravention, of this Act to which the undertaking relates.
          1. In this section, contravention means any of the following:

          2. an actual contravention:
            1. aiding, abetting, counselling, or procuring a contravention:
              1. inducing a contravention, whether by threats, promises, or otherwise:
                1. being in any way, directly or indirectly, knowingly concerned in, or party to, a contravention:
                  1. conspiring with any other person in a contravention.
                    Notes
                    • Section 46AA: inserted, on , by section 13 of the Fair Trading Amendment Act 2021 (2021 No 32).