New Zealand Acts

COMMERCE ACT 1986 - SECT 87

87 Pecuniary penalty for contravening price-quality, quality, or performance requirements

1 The court may, on application by the Commission, order a person to pay a pecuniary penalty to the Crown if the court is satisfied that the person—

a) has contravened any price-quality or quality or performance requirement applying to the regulated goods or services; or

b) has attempted to contravene any such requirement; or

c) has aided, abetted, counselled, or procured any other person to contravene any such requirement; or

d) has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene any such requirement; or

e) has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of any such requirement; or

f) has conspired with any other person to contravene any such requirement.

2 In subsection (1) and sections 87A to 87C , a reference to
"contravening a price-quality, quality, or performance requirement" —

a) refers to a requirement imposed by a determination made under section 52P in relation to goods or services that are subject to any of the following:

i) default/customised price-quality regulation imposed under Part 4 :

ii) individual price-quality regulation imposed under Part 4 :

iii) quality regulation imposed under subpart 12 of Part 4:

iv) performance requirement regulation imposed under subpart 12 of Part 4:

v) price-quality regulation imposed under subpart 12 of Part 4; and

b) means 1 or more of the following:

i) failing to comply with the requirements for prices, whether by charging a price for the goods or services that is higher than the maximum price permitted or is lower than the minimum price required, or by receiving more or less revenue than is permitted or required, or in any other way:

ii) refusing or failing to comply with any quality standards, or any incentives to maintain or improve quality of supply under Schedule 7 (which relates to regulation of water services), required under the price-quality or quality regulation:

iii) refusing or failing to comply with any performance requirements set out in a section 52P determination relating to price-quality, quality, or performance requirement regulation.

2A In this section and sections 87A to 87C , a reference to
"price-quality, quality, or performance requirement regulation" means any type of regulation referred to in subsection (2)(a).

3 The amount of pecuniary penalty must not, in respect of each act or omission, exceed $500,000 in the case of an individual, or $5,000,000 in any other case.

4 In setting the amount of pecuniary penalty, the court must take into account all of the following matters:

a) the nature and extent of the contravention:

b) the nature and extent of any loss or damage suffered by any person as a result of the contravention:

c) the circumstances in which the contravention took place (including whether the contravention was intentional, inadvertent, or caused by negligence):

d) whether or not the person has previously been found by the court in proceedings under this Part to have engaged in similar conduct.

5 A supplier may not be liable to more than 1 pecuniary penalty in respect of the same conduct.

6 Proceedings under this section may be commenced at any time within 3 years after the contravention occurred.

History: Section 87: substituted, on 14 October 2008, by section 15 of the Commerce Amendment Act 2008 (2008 No 70).   Section 87 heading: amended, on 27 August 2025, by section 18(1) of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).     Section 87(1)(a): amended, on 27 August 2025, by section 18(2) of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).     Section 87(2): replaced, on 27 August 2025, by section 18(3) of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).     Section 87(2A): inserted, on 27 August 2025, by section 18(4) of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).     Section 87(3): amended, on 15 August 2017, by section 32(2)(b) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).