Regulator warning to RWC businesses

An artist's conception of how Queens Wharf will look during the Rugby World Cup. Image / NZ Govt

Greedy businesses looking to make a quick buck from opportunities presented by the Rugby World Cup are being watched closely, the Commerce Commission has warned.

The Government regulator has today announced a campaign targeting businesses whose behaviour could fall foul of the Commerce, Fair Trading and Consumer Finance Acts, and said it wouldn't hesitate to take action against anyone who breached the law.

The project will also educate consumers, in particular overseas visitors coming to New Zealand during the Rugby World Cup, about their rights, the commission said.

"The Rugby World Cup presents an excellent opportunity for New Zealand businesses to reap the benefits of the influx of visitors. But if businesses ignore or flout competition and consumer laws they will not only harm consumers and other businesses that are playing by the rules.

"They will potentially damage the nation's reputation," general manager of enforcement for the Commerce Commission, Kate Morrison.

As of last month 15 complaints had been lodged with the commission accusing businesses of dodgy business practice in industries related to the Rugby World Cup.

Legislation introduced last year has provided for big fines and penalties for businesses who claim to be part of the world cup when they are not.

The Major Events Management Act 2007 is a special purpose legislation for the purposes of the Rugby World Cup, but which may also be used for other recognised major events.

Its aim was to ensure only licensed goods are produced for sale and protect official sponsors from so-called "ambush marketing".

"Consumers who are not misled, and businesses that compete fairly, will contribute to the overall economic benefit to New Zealand of hosting the Rugby World Cup," she said.

While the commission was initially focusing on ensuring businesses and consumers were educated, it would not hesitate to take action against any company that was breaching the law during, or in the lead up to, the world cup, Morrison said.

A new page on the Commission's website provides guidance to businesses and consumers on the types of issues that may arise around the Rugby World Cup.

The commission said it was also communicating directly with trade associations and business groups about the programme.

- NZ HERALD ONLINE