Commerce Commission

This week we had the privilege of presenting at the NZ Carparking Association Conference, sharing our insights on fair trading practices and consumer protection in the car parking industry. Our focus was on ensuring transparency and clarity in pricing, disclosure, surcharging, and contract terms. We emphasized the importance of accurate information for consumers to make informed decisions. Key takeaways for car park operators: 🚗 Clear and upfront pricing: Ensure that advertised prices accurately reflect the final cost, including any additional fees or surcharges. 🚗Transparent terms and conditions: Clearly communicate the rules and regulations to avoid misunderstandings. 🚗Surcharging: We expect any surcharges to be no more than the cost of accepting that payment type. If a customer has no way to avoid a surcharge, then it should be embedded in the price. We expect a surcharge to be no more than 2%. 🚗 Accurate breach notices: Issue breach notices only when necessary and ensure they are fair and accurate. By adhering to these principles, car park operators can contribute to a fairer and more transparent industry, benefiting both businesses and consumers. #NZCarparkingAssociation #FairTrading #ConsumerProtection #CommerceCommission

This morning we shared further detail on the work programme for the Energy Competition Task Force. We are considering new initiatives and also looking at accelerating some already underway, so New Zealanders can benefit from a better performing electricity system sooner.

On Tuesday Marty Cohen Cubitt, our Principal Adviser in the Payments team here at the Commission, spoke at the Mastercard Forum in Auckland on how everyone has a role to play in reducing surcharges. He set out what we see as helpful practices by payment service providers and what practices can be changed to reduce surcharges. Work undertaken by Westpac to limit surcharges on terminals it has sight of is a step in the right direction and something we’d like to see other acquirers follow. Additional expectations include: 👉 Terminal providers, if they are asked to apply a surcharge rate of more than 2%, to sight merchant service fee statements to confirm businesses’ average cost of acceptance. 👉 Acquirers to provide the right level of information to merchants so they can understand their costs and surcharge appropriately.

We are requiring mobile network operators to make it easier for Kiwi consumers to compare coverage between providers, and to exit without penalty if they run into coverage problems. "Coverage is a key consideration for consumers but can vary considerably across networks. It's never 100% everywhere. Too many Kiwis are signing up to find that they're not getting the coverage they expected – so we've been working with stakeholders on how to help consumers make more confident and informed choices," said Telecommunications Commissioner, Tristan Gilbertson. We’re asking mobile providers to standardise their maps for ease of comparability, make their maps easier to find on their websites, and provide a clear ‘exit right’ when consumers find a material difference between what a coverage map shows and their real-world experience. We expect mobile network operators to work together on standardising their maps within 12 months, with regular reports on progress, and for each individual mobile provider to deliver accessibility and ‘exit right’ requirements within six months.

You can read the full Annual Grocery Report here: https://lnkd.in/gT76Vkvm

Many banks are revising home loan interest rates downwards. If you are thinking of repaying your loan early and shopping around, we recommend asking your current bank what, if any, the break fees will be before you make any final decisions. All banks, and any lender, need to have clear and upfront disclosure fees in the contract you have entered into. The Credit Contracts and Consumer Finance Act 2003 is there to protect you if you are borrowing money. Further information can be found here: https://ow.ly/7VzT50Tag0q

I’m proud of the hard work by the team on our Rural Connectivity Study – a 12-month deep-dive, in collaboration with the industry, producing a detailed picture of broadband connectivity options and performance for the 13% of consumers outside the national fibre footprint. We can now see, at individual address level, what technologies are available in different areas, who is providing them, and what pricing and performance looks like for consumers.    The results of this work are contained in an interactive geospatial connectivity map – available on the Commission’s website – that can be used to view and compare coverage and connection information for different broadband technologies across New Zealand. This is a powerful tool that we are already applying to our current review of copper regulation in rural areas – recognising the importance of regulation in keeping pace with changes in the market and remaining fit for purpose.

We welcome the opportunity to work alongside the Electricity Authority Te Mana Hiko as part of the Energy Competition Task Force. By combining our sector and regulatory expertise as independent electricity regulators, we can improve the performance of our energy markets for the long-term benefit of Kiwi consumers. 

Big shout out to Nadia Mitchell and Kirsten Dinnan! Last week, they took the stage as panelists at the DivergenThinking ADHD Roadshow, sharing their valuable perspectives and experiences on Neurodiversity.   Their kōrero on living with ADHD and supporting others is paving the way for a more inclusive future, and we couldn’t be prouder to have them represent us. Thank you, Nadia and Kirsten, for your passion and dedication! 🌟

We are seeking feedback on our draft decision that it is too early to investigate the deregulation of fibre (UFB – Ultra Fast Broadband) services. “Our preliminary view, just three years into the new regime, is that there’s not enough competitive constraint on fibre for there to be any serious question of deregulation at this time,” says Telecommunications Commissioner, Tristan Gilbertson. We’re concerned that, if regulation were removed prematurely, fibre providers would be able to increase prices or reduce quality – or both – to maximise profits at the expense of consumers. “Regulation is designed to promote the long-term interest of consumers and outcomes consistent with an effectively competitive market. It’s therefore in the best interests of consumers that current regulation remains in place for now.” Submissions on our draft decision are due by 5pm on 24 September 2024.