1 00:00:00,080 --> 00:00:02,000 Speaker 1: Change coming for those who reach the Fair Trading Act 2 00:00:02,040 --> 00:00:05,320 Speaker 1: fines will increase from six hundred thousand dollars to five million. 3 00:00:05,840 --> 00:00:07,680 Speaker 1: Cases are going to move from criminal to sibil. The 4 00:00:07,720 --> 00:00:10,120 Speaker 1: reason for that is it's easier prosecution, or so they claim. 5 00:00:10,160 --> 00:00:12,520 Speaker 1: John Duffy is Consuming New Zealand's Chief executive and with 6 00:00:12,680 --> 00:00:17,599 Speaker 1: us John Morning Morning, Mike, good move, great move, fantastic move. 7 00:00:17,640 --> 00:00:20,640 Speaker 1: What sort of move is it? 8 00:00:20,640 --> 00:00:23,440 Speaker 2: It's pretty good. It's probably one of the most consequential 9 00:00:23,440 --> 00:00:26,639 Speaker 2: reforms of the Fair Trading Act in a generation. But 10 00:00:27,320 --> 00:00:30,520 Speaker 2: as with everything, it wasn't quite everything that consumer advocates 11 00:00:30,560 --> 00:00:33,120 Speaker 2: were looking for. But the changes to the penalty regime 12 00:00:33,280 --> 00:00:34,200 Speaker 2: very good, very pleased. 13 00:00:34,320 --> 00:00:35,440 Speaker 1: Will it be a deterrant? 14 00:00:38,120 --> 00:00:41,239 Speaker 2: I think so for more companies. There will always be 15 00:00:41,320 --> 00:00:46,720 Speaker 2: those companies, you know, big multinationals with deep pockets. Five 16 00:00:46,760 --> 00:00:48,600 Speaker 2: million dollars is still a drop in the bucket for 17 00:00:48,640 --> 00:00:51,040 Speaker 2: those types of companies. If you compare it to Australia, 18 00:00:51,080 --> 00:00:56,040 Speaker 2: there they're maximum penalties fifty million Australian dollars. But for 19 00:00:56,560 --> 00:01:00,800 Speaker 2: kind of medium sized and domestically located companies, this is 20 00:01:00,840 --> 00:01:01,640 Speaker 2: a serious deterrent. 21 00:01:01,760 --> 00:01:04,800 Speaker 1: Yes, right, would you cite Australia as an example of 22 00:01:04,840 --> 00:01:06,600 Speaker 1: something that does work or not. 23 00:01:09,120 --> 00:01:13,399 Speaker 2: Yeah, look, I think the regulator there has real teeth. 24 00:01:13,560 --> 00:01:15,680 Speaker 2: And that's not to say our regulator is not doing 25 00:01:15,720 --> 00:01:18,840 Speaker 2: a good job. It's to say that the AGEABRAC in 26 00:01:18,840 --> 00:01:21,240 Speaker 2: Australia is armed with the right tools, and they have 27 00:01:21,520 --> 00:01:25,360 Speaker 2: a broader range of tools beyond just big fines. They 28 00:01:25,400 --> 00:01:28,959 Speaker 2: can issue infringement notices, they have unfair contract provisions that 29 00:01:29,040 --> 00:01:32,000 Speaker 2: can be more easily enforced than the ones here in 30 00:01:32,040 --> 00:01:33,839 Speaker 2: New Zealand, so that there's a range of other tools 31 00:01:33,840 --> 00:01:36,640 Speaker 2: they have. But this will certainly help embold in our 32 00:01:36,640 --> 00:01:39,440 Speaker 2: commust commission we I think particularly the move from criminal 33 00:01:39,480 --> 00:01:40,240 Speaker 2: to civil. 34 00:01:40,319 --> 00:01:44,080 Speaker 1: And so are these mistakes or is this deliberate behavior? 35 00:01:44,280 --> 00:01:49,320 Speaker 2: In general, it can be both. But typically where you 36 00:01:49,400 --> 00:01:54,320 Speaker 2: have a business making a genuine error, they will have 37 00:01:54,360 --> 00:01:57,240 Speaker 2: a potentially have a defense under the fair trading active 38 00:01:57,280 --> 00:02:00,400 Speaker 2: of reasonable mistake and also sure that they might make 39 00:02:00,440 --> 00:02:03,640 Speaker 2: a mistake. They might have put out some misleading advertising 40 00:02:03,720 --> 00:02:06,240 Speaker 2: or something like that. Consumers may have suffered some instrument 41 00:02:06,680 --> 00:02:10,400 Speaker 2: typically that would be reflected in any fine that the 42 00:02:10,480 --> 00:02:12,760 Speaker 2: court imposed. They'd look at the circumstances of the case 43 00:02:12,800 --> 00:02:15,000 Speaker 2: and go, actually, this is at the mild end of 44 00:02:15,040 --> 00:02:17,080 Speaker 2: the spectrum. We're not going to give a five million 45 00:02:17,080 --> 00:02:20,200 Speaker 2: dollar fine. We might give something lower, but for that 46 00:02:20,280 --> 00:02:24,240 Speaker 2: really deliberate, intentional stuff, having a five million dollar fine 47 00:02:24,400 --> 00:02:26,440 Speaker 2: possible should be a real deterrent, all. 48 00:02:26,400 --> 00:02:29,600 Speaker 1: Right, John, Appreciate it, John Duffy, who's the Consumer's chief executive. 49 00:02:29,960 --> 00:02:32,840 Speaker 2: For more from the Mic Asking Breakfast, listen live to 50 00:02:32,960 --> 00:02:36,040 Speaker 2: news talks that'd be from six am weekdays, or follow 51 00:02:36,080 --> 00:02:37,639 Speaker 2: the podcast on iHeartRadio.