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Retail Payment System Act 2022

Merchant surcharging, monitoring and enforcement, and miscellaneous provisions - Pecuniary penalties

39: Pecuniary penalty orders for contraventions of network standards and directions

You could also call this:

"Paying a fine for breaking payment system rules"

Illustration for Retail Payment System Act 2022

If you break certain rules, the High Court can order you to pay a fine. The Court can do this if you have done something wrong with pricing standards. You might have to pay up to $500,000 if you are an individual, or $5 million if you are a company. If you break other rules, like information disclosure standards or access standards, the Court can also order you to pay a fine. You can be fined for not following directions to set or amend network rules, as stated in section 24(2)(a) or (b) and section 24(3). The fine can be up to $200,000 for an individual, or $2 million for a company. The Court can also fine you if you are an operator and you break certain rules, such as not notifying the Commission of changes to network rules, as stated in section 24(2)(c) and section 24(2)(d). The fine can be up to $15,000 for an individual, or $150,000 for a company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS528171.

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Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
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38: Application of other provisions of Commerce Act 1986, or

"Rules from the Commerce Act 1986 that apply to the Retail Payment System"

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40: Pecuniary penalty orders for contraventions of merchant surcharging standards, or

"Breaking merchant surcharging rules can result in a fine of up to $200,000 or $600,000."

Part 3Merchant surcharging, monitoring and enforcement, and miscellaneous provisions
Pecuniary penalties

39Pecuniary penalty orders for contraventions of network standards and directions

  1. The High Court may, on the application of the Commission, order a participant (A) to pay to the Crown a pecuniary penalty if satisfied that A has—

  2. contravened a pricing standard; or
    1. been involved in a contravention of a pricing standard.

      1. The amount of any pecuniary penalty under subsection (1) must not exceed,—

      2. in the case of an individual, $500,000 for each act or omission; or
        1. in any other case, $5 million for each act or omission.

          1. The High Court may, on the application of the Commission, order a participant (A) to pay to the Crown a pecuniary penalty if satisfied that A has—

          2. contravened an information disclosure standard; or
            1. contravened an access standard; or
              1. contravened a direction to set or amend network rules under section 24(2)(a) or (b); or
                1. contravened a direction to comply with 1 or more network rules under section 24(3); or
                  1. been involved in a contravention of any of those things.

                    1. The amount of any pecuniary penalty under subsection (3) must not exceed,—

                    2. in the case of an individual, $200,000 for each act or omission; or
                      1. in any other case, $2 million for each act or omission.

                        1. The High Court may, on the application of the Commission, order an operator (A) to pay to the Crown a pecuniary penalty if satisfied that A has—

                        2. contravened a direction to notify the Commission of any amendments made to network rules under section 24(2)(c); or
                          1. contravened a direction to obtain the Commission’s approval before making any substantive amendments to network rules under section 24(2)(d); or
                            1. been involved in a contravention of either of those things.

                              1. The amount of any pecuniary penalty under subsection (5) must not exceed,—

                              2. in the case of an individual, $15,000 for each act or omission; or
                                1. in any other case, $150,000 for each act or omission.

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