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When big companies face criminal charges, what does it actually mean?
When big companies face criminal charges, what does it actually mean?

The Spinoff

time4 days ago

  • Business
  • The Spinoff

When big companies face criminal charges, what does it actually mean?

Noel Leeming is the latest big retailer to be criminally prosecuted by the Commerce Commission. But what do the charges actually mean, and will they make a difference to uncompetitive or unfair behaviour? Last week, the Commerce Commission announced it was filing criminal charges against Noel Leeming in the Auckland District Court. The government's consumer watchdog claimed the electronics chain, which is owned by The Warehouse, had breached the Fair Trading Act, particularly in its 'price match' guarantee; often, according to the commission, products from other companies will not be matched, despite Noel Leeming advertising that they will. 'It's crucial that businesses promoting any price match offer factor in the overall impression of the claims they make, and that all information is clear to customers,' said Anne Calliman, the deputy chair of the Commerce Commission, in a press release. It's not the first time the commission has filed criminal charges against retailers: Woolworths NZ, and some specific Pak'n'Save supermarkets (which are operated under a franchise model) were served with criminal charges last December for alleged breaches of the Fair Trading Act, while civil proceedings were filed against Foodstuffs North Island and Gilmours last week for alleged cartel conduct in breach of the Commerce Act. But what punishments can really be handed out? And does being served with criminal charges make a difference to how companies operate? What is the Commerce Commission? Great, starting with an easy one. The commission, also known as the CommComm (cute!), is New Zealand's competition, consumer and regulatory agency. An independent Crown entity, it's responsible for enforcing a few different laws. Under the Commerce Act, the commission can conduct market studies into competition, investigate mergers between businesses which may reduce competition and harm consumers, and recommend that particular goods or services are regulated if there is little competition. If people have been engaging in cartel conduct (ie price fixing or bid rigging), the commission can bring civil charges under the Commerce Act, with penalties including fines of up to $500,000 for an individual and $10 million (or more) for a company. As of 2021, it can also bring criminal charges under this law which could lead to imprisonment of up to seven years for individuals. Under the Fair Trading Act (FTA), the commission can investigate and prosecute companies and individuals for misleading pricing, including contract terms and pyramid schemes. It can file criminal charges through the District Court, with fines of up to $200,000 per offence for individuals and $600,000 per offence for companies. The commission also enforces some parts of the Telecommunications Act (how people are charged for internet and phone services), the Dairy Industry Restructuring Act (how Fonterra charges for raw milk) and and the Credit Contracts and Consumer Finance Act (money lending). People can report companies for suspected breaches of these acts, and the commission can respond by investigating and potentially filing civil or criminal charges. So the Commerce Commission can't investigate or prosecute 'high prices' – it has to have a specific example of someone breaking the law? Yeah, exactly. It might feel wrong that butter costs $11 – but a breach of the Fair Trading Act would be a misleading special, like butter being advertised as on special for $11 if that was actually the standard non-discounted price, or a shopper being charged $11 when the price tag said $10. Examples of this gathered by independent organisation Consumer and submitted to the ComCom led to Pak'nSave and Woolworths receiving criminal charges. What's the difference between civil and criminal charges? Whether civil or criminal charges are brought will depend on the particular legislation and all the circumstances of the conduct. Where there is a choice between the two, the commission will consider a range of factors including the standard of proof required (civil cases must be proved on the 'balance of probabilities' standard, but criminal cases require proof 'beyond reasonable doubt'), the seriousness of the conduct and its consequences and whether the conduct was deliberate or especially blameworthy. Are there any recent examples of companies actually having to pay big fines? Several. Last year, Kiwibank was found to have overcharged 35,000 customers by more than $6.8m, in breach of the Fair Trading Act. Kiwibank found the issues in its system and turned itself into the commission, which brought 21 criminal charges and the bank was fined $1.5m, as well as repaying the customers $9.2m to remediate. In a civil case last year, meanwhile, Foodstuffs North Island was fined $3.25m under the Commerce Act for using land covenants to block its rivals, and in 2023, One NZ copped a $3.6m fine under the Fair Trading Act for misleading customers about fibre broadband. Has the Commerce Commission ever actually sent someone to prison? Not yet, but in December last year, the High Court handed down its first criminal sentence for charges brought by the Commerce Commission under the Commerce Act, to Manesh Kumar, who rigged bids for NZTA projects. He received a sentence o f six months of community detention and 200 hours of community service. Despite the term 'criminal charges', this doesn't usually lead to lawyers yelling at each other across a courtroom, holding up different pictures of price specials available at supermarkets. Many Commerce Commission cases are settled, with the company at fault agreeing to pay a fine and not engage in the bad behaviour again. I've lost count of the articles I've read about how unfair and expensive the grocery sector is. Can the Commerce Commission make much of a difference to the fact that getting a few things for dinner always ends up costing $80? After a market study in 2022 showed that New Zealand needed more competition in the grocery sector to get better prices, the Grocery Industry Competition Act was passed by the government. Since 2023, the Commerce Commission has had a specific grocery commissioner. Yet the high prices, and the depressing headlines, continue. The commission has said that the grocery sector is one of its priorities for 2024/25. It hasn't just focused on supermarkets, but also alternatives, like filing criminal proceedings under the FTA against meal subscription company Hello Fresh for not telling customers that accepting a voucher meant they were resubscribing to the service. It's said the rules need to change so that smaller companies that sell groceries have more alternatives. But because there is so little competition in the sector, all these court cases and call-outs have made little difference. The Commerce Commission can only regulate the commercial sector as it is, not change the system as a whole. Finance minister Nicola Willis has said that breaking up the duopoly of Woolworths and Foodstuffs might be an option. 'Significant action may be required to foster genuine competition,' she said in March. For now, however, criminal charges or otherwise, the status quo remains.

Diary of a Smith & Caughey's sales girl: What it was like working for the iconic Auckland retailer
Diary of a Smith & Caughey's sales girl: What it was like working for the iconic Auckland retailer

NZ Herald

time18-07-2025

  • General
  • NZ Herald

Diary of a Smith & Caughey's sales girl: What it was like working for the iconic Auckland retailer

It wasn't jealousy, exactly. More a kind of intrigue, laced with the knowledge that accent alone could open and close doors. Good afternoon, ma'am. Of course, sir. That's a beautiful choice, ma'am. I listened, I mimicked, and I understood no one else knew about the game. But they were still playing. Let me explain. This was my first exposure to the upper class of Aotearoa. I was 18. It was a far cry from the thundering laughter and humility of Onehunga, where I was raised, shaped and gifted a tongue. I'm also an Indo-Fijian immigrant. It was 2010. I remember serving Christopher Luxon. He told me he ran an airline. It would have been 2013 or 2014. He came in alone to the Newmarket branch of Smith & Caughey's and got two shirts. As I was bagging up, he asked me if I was a student. I was used to men coming in and making useless conversation, often bizarre tales, that non-casually wove in ludicrous wealth. I'm a manager of this and that, they would say. I've travelled here and there. Once, a middle-aged man detailed coherently in 10 long minutes how he helped forge passports to get people out of the Bosnian War. All I asked was if he needed help finding something. These chats almost always led to an invitation to 'talk more' and a gifting of the holy business card at the till. I'm very aware of how conceited I sound, but this happened. Every single shift. The shop's window display showing some of the history of the store after it announced its closure. Photo / Dean Purcell I remember thinking they were all boring, and I didn't understand at that age why they thought talking about jobs and wealth was a good way to flirt. Perhaps it was because, as a student on basically minimum wage, I knew I couldn't reciprocate. Perhaps it was because the main shop we got our clothes from growing up was The Warehouse. Perhaps it was because it isn't a good way to flirt. I would smile. I would feign interest; being polite was my job. Luxon wasn't at all like that, though. Not with me anyway. I told him I was studying a BA in Politics and Spanish. The degree that gets criticised for poor job prospects. I expressed my uncertainty about my future. He said: 'I studied the same thing [referring to the politics part, though I'm not sure in what capacity], and now look, I'm the CEO of Air New Zealand.' I never forgot that moment for two reasons. One, Luxon did indeed succeed in inspiring a young student suffering from disenchantment. Two, it didn't feel like I was his tool to score validation. Luxon's politics as the leader of one of the country's most conservative coalition governments to date aside, that energy was rare in the menswear department. The Queen St branch. Photo / Michael Craig Although the talk was often dull, I admit I was always curious about how they came to be how they were. I'd serve men with their breast-implanted trophy wives, fashion designers, models, gangsters, politicians, sugar babies, drug dealers, chief executives, escorts, the I-grew-up-poor-and-now-I'm-here people, the generational wealth people and the I-wear-real-fur kind of people. Not all of them were pillocks, of course. I've had plenty of nice and kind conversations with customers at Smith & Caughey's. But being nice and kind is the baseline. What I remember more is the absurdity of exchanges with some of them, fascinated by their delusion of power. And that's what this story is about. I remember when a man literally threw his cash at me after I asked for payment. 'There you go, I just paid your wages,' he said, looking at me dead straight in the eye. I looked at the woman, presumably his wife, standing beside him physically and, apparently, metaphorically. Are you okay with your husband speaking to me like that? I said to her with my eyes. She held the same expression as him and said nothing. Once, an older man of large stature, maybe in his 60s, perhaps even early 70s, walked in and stopped dead when he saw me. I greeted him as I was trained to do. He looked me up and down without any coyness. Instead of greeting me back, he said loudly: 'Mmm, I want you. I want a piece of you'. While I was no stranger to flattery, this felt different. His eyes were wide and locked in. The arrogance of his display told me he didn't play by normal social rules. He didn't touch me. He didn't come closer. He didn't say anything more. And yet my frozen body wanted to get as far away from him as possible. The announcement of the store's closure attracted nostalgic crowds. Photo / Dean Purcell What followed is a blur; I found an excuse to walk away and hide, forcing my colleague to attend to him. After a while, I returned, and the man had left. I told the security guard what happened, more out of making conversation than to prompt action. His anger surprised me. The security guard went out onto the street to see if he could spot him. He reviewed the security footage. He told the assistant store manager, who then came down to personally check if I was okay. I will note that I always felt physically safe while at work. It was clear that our store manager was protective of her staff. Before this job, I was a part-time sales assistant at a Hallensteins outlet store in Dressmart. There, discounts were king. Here, in the land of $200 keychains, discounts were offensive. I remember the first time I voluntarily told a Smith & Caughey's customer about a sale. It was also the last. The woman was looking for a nice handbag, which was the department I started in before moving to menswear. I showed her the ones on special first, thinking she would be grateful to know – everything is rudely expensive, after all – and it's a normal practice for retail staff. But this wasn't a normal place. I might as well have told her I had a lovechild with her son and stole her cat. She didn't need to buy things on sale. The price didn't matter. She could buy anything in the store if she wanted to, and I darn well should know that. I remember the first time a customer shouted at me. It had to have been in my first year. His signature did not match his credit card. I politely let him know, even asked if he wanted to try again. He started pointing his finger. He started protruding his veins. It was like he morphed into an evil character from a Hayao Miyazaki film. 'YOU ARE NOT GOING TO DO THIS TO ME. NOT TODAY. I AM A LOYAL CUSTOMER,' he screamed as he walked off with the goods. I was shaken and in tears. I didn't know how to handle angry men then. I'm not sure I know how to handle them now. Concerned about a potential theft that I let happen, I informed my superiors. The counter manager told me they called him, secured payment and that he was sorry for how he treated me. A colleague told me the company called and apologised to him before rewarding him with store credit for his loyalty. I remember a man walked in with – I kid you not – his nose in the air. Our conversation was the following: 'Good afternoon,' I said. 'I need a pair of jeans, but I am far too rich for you. Smith & Caughey's won't have the jeans that I need. I am too rich,' he said. It was like a scene from a cartoon. There is nothing wrong with grandeur inherently, nor the desire to show appreciation for someone's artistry and the beauty of their creations. Feeding a fantasy is something else. Some Smith & Caughey's customers, I know, felt special when they were inside. They felt like they 'made it' – they were 'a somebody'. To simply be seen there, for many, I believe, was always the point. A masterclass in marketing. Until it wasn't.

Second Auckland Show Added For Hot Wheels Monster Trucks Live Glow-N-Fire As Kiwis Prioritise ‘Joy Spending'
Second Auckland Show Added For Hot Wheels Monster Trucks Live Glow-N-Fire As Kiwis Prioritise ‘Joy Spending'

Scoop

time16-07-2025

  • Entertainment
  • Scoop

Second Auckland Show Added For Hot Wheels Monster Trucks Live Glow-N-Fire As Kiwis Prioritise ‘Joy Spending'

Hot Wheels Monster Trucks Live Glow-N-Fire organisers have added a second show at Eden Park, Auckland on Sunday, 5 October, following overwhelming demand from thousands of multi-generational New Zealand fans. Promoter TEG today confirmed that the Auckland 4 October event has officially sold the most tickets for a single show in the history of Hot Wheels Monster Trucks Live, which has toured across North America, Europe and Australia for the past seven years. Priced just below $50 for general admission tickets, the show is proving to be a bright spot for families seeking affordable, high-value entertainment. The entertainment company believes the ticket demand reflects an appetite for joy spending — experiences that offer meaningful family connection, nostalgia, and escape. David Benge, TEG Content Partnerships Manager says, 'The response from Aotearoa has blown us away — Auckland is now our biggest-selling show anywhere in the world. Kiwi families are proving that they will show up in massive numbers when the entertainment on offer ticks that perfect combination of boxes, fun, whānau and excitement. We couldn't be more thrilled to add a second and final Auckland show to meet the overwhelming demand.' Nick Sautner, CEO of Eden Park, says, 'We're delighted that Auckland has officially sold the most tickets for a single show in the history of Hot Wheels Monster Trucks Live — and Eden Park's capacity and infrastructure have played a key role in making that possible. 'This is the first time a show of this kind has ever been staged in Eden Park's 125-year history, and it reflects our ongoing commitment to delivering diverse, world-class entertainment for fans of all ages. Hot Wheels is an iconic brand that has fuelled imaginations for generations, and this event reinforces Eden Park's reputation as a truly multi-purpose venue that offers something for everyone.' He adds, 'Despite current economic challenges, Aucklanders are clearly prioritising quality family entertainment. Hot Wheels has a unique cross-generational appeal — parents and even grandparents are reliving their childhoods while watching their kids light up. It's exactly the kind of energy and joy the city needs right now.' Based on the world's best-selling toy[1], Hot Wheels Monster Trucks Live Glow-N-Fire features life-size versions of iconic Hot Wheels toys — including Bigfoot, Bone Shaker, Tiger Shark, and Mega Wrex — performing jaw-dropping stunts, fiery wheelies, and gravity-defying jumps, all under the glow of stadium lights. For die-hard fans, the Pre-Show Party and Legends Backstage VIP Experience offer the chance to meet drivers, explore the arena floor, and get up close to the trucks. Following the sell-out of the original Dunedin date, a second Forsyth Barr Stadium show was also added to the line-up earlier this year, making the New Zealand tour one of the fastest-growing in Hot Wheels Monster Trucks Live history. The tour is presented by The Warehouse where one Hot Wheels car sells every 20 seconds. NEW AUCKLAND SHOW ON SALE FROM TODAY. General admission from just $45.00 (+ fees) Family passes and VIP upgrades available Eden Park – New Show: Sunday 5 October Visit for tickets and info. 2025 NEW ZEALAND TOUR DATES: Dunedin – Forsyth Barr Stadium Saturday 20 September (SOLD OUT) Sunday 21 September (NEW SHOW) Wellington – Sky Stadium Saturday 27 September Auckland – Eden Park Saturday 4 October Sunday 5 October (NEW SHOW)

Clothing waste tackled: Whangārei part of recycling pilot with The Warehouse
Clothing waste tackled: Whangārei part of recycling pilot with The Warehouse

NZ Herald

time14-07-2025

  • Business
  • NZ Herald

Clothing waste tackled: Whangārei part of recycling pilot with The Warehouse

Clothing that's still in good condition will be passed on to The Salvation Army's Family Stores, where it can be resold to support local community services. Items that can't be reused will be recycled into products such as signage, packaging, protection mats and even acoustic panels. Nick Garforth, area manager for Salvation Army Family Stores, said the system is designed to keep donations local. 'The product that comes in is processed through the local Whangārei [Warehouse] store, sold in the Whangārei [family] store, and the money generated goes to local mission funding. 'Ultimately, it will help this community – and there's absolutely no doubt about that.' The pilot has been running for about three weeks and Garforth said early signs are positive. 'We're seeing some good numbers coming through. It's not breaking the bank, but people are engaging with the project and donating at the Whangārei Warehouse,' he said. 'There's no reason it won't continue to be a success.' The pilot will also test how incentives can help encourage long-term recycling behaviours. Asked if he was concerned about donation volumes overwhelming stores, Garforth said: 'We have very robust processing systems in place to take care of large volumes. We never close for donations.' To encourage people to take part, The Warehouse is offering a reward through its Market Club loyalty programme. Anyone who donates clothing will receive a voucher for 10% off clothing purchases over $30, either in-store or online. Every kilo of clothing collected will be tracked and reported, so customers can see the real impact of their donations. Phil Cumming, general manager of sustainability and ethical sourcing at The Warehouse Group, says the initiative is part of the company's wider push to make sustainable living easier and more accessible. The Good Drop adds to The Warehouse Group's existing in-store recycling options, which currently include electronics, soft plastics, mobile phones and ink cartridges. 'The trial is about testing how incentives can help encourage long-term recycling behaviours,' Caroline Dewstow, sustainability partner at The Warehouse Group, said. Dewstow said The Warehouse had worked with the Salvation Army for many years and knew the power of their national scale and positive impact in local communities. It was a 'no-brainer' for the pair to partner on this initiative. Sarah Curtis is a news reporter for the Northern Advocate, focusing on a wide range of issues. She has nearly 20 years' experience in journalism, most of which she spent reporting on the courts in Gisborne and the East Coast.

Whatever you call it, it's warm and woolly
Whatever you call it, it's warm and woolly

Otago Daily Times

time11-07-2025

  • General
  • Otago Daily Times

Whatever you call it, it's warm and woolly

Civis won't pull the wool over your eyes with this winter query: are those knitted upper-body garments called jerseys, pullovers, jumpers or sweaters? Maybe even guernseys? It's the kind of question to prompt knitted brows, and the answers are just a bit woolly. Civis fears the creeping invasion of the United States and Canadian sweater, although internet searching suggested jersey is holding its own in New Zealand. For Civis, jersey remains the go-to. Sweater is also a broader term, pulling in cardigans (open at the front), pullovers and sweater vests (sleeveless). According to one blog, sweaters can be casual or dressy, and span sporty styles to luxury contexts. Pullover is said to be a globally recognised term, especially common in European fashion. Jumper sounds more British, and it's a term Civis thought was losing its bounce in New Zealand, until The Warehouse site was checked. There, 14 different men's "jumpers" were displayed — and not a single jersey in sight. There are also plenty of women's "jumpers", plus a handful of sweatshirts. It being July, let's not sweat over that last term, or over hoodies, for that matter. The blog identified jumper as the standard word in the United Kingdom and Ireland, evoking cosy knitwear for cooler seasons. Disconcertingly, jumper was also listed as the primary word for Australia and New Zealand. Adding to the confusion: in American English, a "jumper" is a sleeveless dress worn over a blouse. Civis had no idea. Jersey is thought to originate from Jersey in the Channel Islands. Jersey was renowned for high-quality knitted wool garments, and the name became associated first with the fabric, then with the garments themselves. In the 19th century, woollen jerseys were a natural choice for sport. The word "jersey" soon shifted to describe the entire garment. Regulations at the 1908 London Olympics even required competitors to wear a "sleeved jersey". Thus, jersey embedded itself in the sporting lexicon. Today, the leader of the Tour de France wears the yellow jersey. The All Blacks "play for the jersey", even if it's made from some fancy synthetic material. The garment called a guernsey emerged from another Channel Island, Guernsey. It was a tightly knitted, rugged top worn by fishermen, later adopted by the British Navy. Guernsey is now often considered a particular style of woollen jersey. In the 1870s, Australian rules footballers began wearing guernseys — robust, navy woollen tops. These evolved into today's sleeveless AFL guernseys. The Collins Dictionary notes that jersey, as a knitted upper-body garment, is "old-fashioned". How dare it! ★★★ Language acquisition and the integration of grammar rules into mother tongues are fascinating. Pre-schoolers, through repetition, begin to understand that "-ed" turns verbs into the past tense. That works fine for climb/climbed and kick/kicked. But English is riddled with irregular verbs, so you'll often hear little ones say eated, sleeped or fighted. Or perhaps even "I runned so fast my shoes flyed off". However, what really caught Civis' ear was a girl of nearly 3 using both forms together: she not just "seed" something — she "sawed" it. And what about this gem from a pre-teen? She's just learned that the small pieces in chess are called pawns and not prawns. civis@

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