ComCom Outlines Priorities, Sharing Sectors And Conduct In Its Crosshairs

The Commerce Commission today published its 2024-25 priorities for its compliance and enforcement activities, spotlighting the practices and sectors that will garner the most scrutiny. The priorities were shared with stakeholders on Thursday and the webinar is now available on the Commission's website.

“Our enforcement priorities put businesses on notice - where we see unlawful conduct relating to these priority areas, businesses should be under no illusion the Commission will act,” says Commission Chair John Small.

The areas cover some types of conduct that will always be a priority given how harmful they can be to New Zealanders. These are the Commission’s five enduring priorities – cartels, anti-competitive conduct, actions that support our market and economic regulation functions, product safety and vulnerable consumers.

At the same time, the Commission is also placing a particular focus on key areas this year – bid rigging cartels, non-compete agreements, illegal on-line sales conduct, breaches in the grocery and telecommunications sectors, motor vehicle finance and unconscionable conduct.

Dr Small says the priorities have been informed by concerns lodged with the Commission from members of the public, as well as market intelligence, investigative trends, and events impacting the economy.

“The priorities identify a range of industry sectors - particularly those we consider to be essential to Kiwi consumers - alongside specific competition and consumer law issues.”

Dr Small acknowledges Kiwi consumers are facing significant cost of living pressures, which is why the focus areas prioritise action against conduct that can contribute to these pressures, and which disproportionately impact vulnerable consumers.

“The Commission received more than 11,000 complaints over the past 12 months. While it’s simply not possible to investigate all of those, the concerns raised with us have helped to shape our focus areas, particularly where we see common issues or sectors.”

Dr Small emphasised the Commission's strong enforcement record and signalled there was more to come, following a decision by the Commission Board to ‘overcommit’ its litigation fund. The fund has not historically been fully utilised due in part to budgeted cases not being contested in Court.

“Overcommitting the fund means we can take more action and importantly, take on significant cases where case law isn’t as clear cut, and the odds of a successful outcome may be lower. So, we will be a more active enforcer,” says Dr Small.

Dr Small noted that the priority outcomes would be delivered in large part by the Commission’s consumer and competition teams and doesn’t detract from enforcement work related to its regulatory roles in telecommunications, energy networks, fuel, the retail payment system, dairy and airports.

“Of course, there will always be urgent or emerging issues that require action, but for the most part, these seven areas are where we will take concerted action to use our enforcement resources. This is about ensuring consumers are protected and competition preserved. The take-out for businesses is to ensure you’re playing by the rules.”

“At the end of the day, it’s about making New Zealanders better off because markets work well, and consumers and businesses are confident market participants,” says Dr Small.

Our 2024/25 enforcement priorities

Cartels

• Conduct (such as bid-rigging) that impacts the competitive process for the procurement of public services and infrastructure contracts will be prioritised.

Non-compete agreements

• Action will be prioritised where we consider non-compete agreements are unlawfully impacting on competition.

Illegal on-line sales conduct

Buying products on-line is increasingly a way of life for Kiwi consumers. We will prioritise action to protect consumers from illegal on-line sales practices, such as fake reviews, misleading scarcity claims, misleading social proof sales tactics, drip pricing and subscription traps.

Breaches in the grocery sector

Consumers should be able to rely on the accuracy of supermarket prices and price promotions. We will prioritise action where we consider sales practices are illegal. We will also focus on compliance by retailers, wholesalers, and suppliers with codes and other obligations.

Breaches in the telecommunications sector

As an essential service, we will take action where we see false, misleading or deceptive marketing, sales or billing practices in the telecommunications sector. We will also focus on compliance by providers with codes and other obligations.

Motor vehicle finance

Action will be prioritised where we consider that motor vehicle finance lenders have not met their obligations under the Credit Contracts and Consumer Finance Act, including the rules that require responsible lending practices. We are particularly focussed on motor vehicle lenders who provide credit to vulnerable consumers.

Unconscionable conduct

This relates to behaviour that substantially departs from expected standards and is so harsh that it goes against good conscience. This should rarely occur but if it does, we will act to avoid continuing harm to consumers or businesses.

The Commission’s enforcement priorities are available in full on the Commission website:

https://comcom.govt.nz/about-us/our-role/our-priorities/_nocache

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