Debt collector John Campbell fined $115.5k for misleading conduct
It follows a Commerce Commission investigation.
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The Spinoff
39 minutes ago
- 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.
Otago Daily Times
2 hours ago
- Otago Daily Times
Christchurch man jailed for years of sexual abuse, exploitation
By Al Williams, Open Justice reporter Warning: This story contains details of sexual offending against a child and may be upsetting A teenager with a head injury who suffered years of sexual abuse says he is angry and hoped the man responsible will be jailed for 'a long time'. This month, the teen and his father confronted Shane Bell in court, telling him that other young people should not have to go through what the teen had. 'I find it hard at times to express myself,' the teen told the court. 'I am angry with him, with what he did to me.' He said Bell's actions had made him feel insecure. 'I could not trust other men, I thought they would do the same. I think he should go to jail for a long time - other teenagers should not have to go through this.' Bell, 49, sat expressionless in the Christchurch District Court as the teen and his father, flanked by supporters, struggled to contain their emotions at times during the sentencing hearing. The boy's father said he had a lot of trust in Bell being around his son. 'I don't have any trust in him now after what he has done to my son. I don't even like talking about him, as it makes me angry, what [he did] to my son. 'It has made me mindful of who I allow around my other kids, as I don't want this to happen to any of them. It has become a very traumatic experience.' He added that the experience 'has made me closer to my son, which I am grateful for'. The boy's father said the abuse had taken a toll on his family as they had to deal with residual trauma. The court heard the victim was extremely vulnerable, with a head injury, and Bell had taken advantage of him. A pre-sentence report indicated Bell was at high risk of reoffending, with distorted thinking and no display of remorse. Alongside charges of sexual connection with a young person and indecent acts with a young person, Bell faced charges of possessing hundreds of objectionable publications and making an objectionable publication that involved the victim. He would look after the victim, who would often spend time at Bell's house and stay overnight. Over 18 months, he performed sex acts on the boy and told him not to tell anyone. The victim was too scared to reveal what was happening. The boy told Bell it was illegal and tried to get away from him once, but Bell held him down. The victim believed Bell had committed the sex acts on him about 50 times. Bell also supplied the boy with cannabis and alcohol. Bell came to the attention of Polish authorities via a cellphone that had received child exploitation material, and in early 2023 the information was passed on to New Zealand police, who executed a search warrant on his home, seizing several devices. More than 1000 files were found on his laptop and cellphone, images involving young boys in a variety of sexual acts and a large array of animals being sexually violated. Bell's web history showed more than 100 searches for child exploitation material and bestiality. Also on his phone were photographs and videos of Bell and the victim. Judge Gerard Lynch described the offending as deplorable, vile and degrading. The judge said Bell had told authorities that if the victim had been unhappy with the offending, he would not have visited his home. Bell's main concern while in custody was with the wellbeing of his cats, Judge Lynch said. Bell was at high risk without treatment, and it had been noted that an intensive sexual treatment programme would be vital. Judge Lynch did not accept Bell's apology and sentenced him to six years and three months' jail. Bell was also placed on the Child Sex Offenders Register as part of his sentencing. MALE SEXUAL ABUSE SURVIVORS Where to get help: If it's an emergency and you feel that you or someone else is at risk, call 111. • If you've ever experienced sexual assault or abuse and need to talk to someone call the confidential crisis helpline Safe to Talk on 0800 044 334 or text 4334. (available 24/7) • Male Survivors Aotearoa offers a range of confidential support at centres across New Zealand - find your closest one here. • Mosaic - Tiaki Tangata: 0800 94 22 94 (available 11am-8pm) • Alternatively contact your local police station - click here for a list. If you have been abused, remember it's not your fault. Youthline NZYouthline NZ Youth Health Services, Youth helpline Program Centre NZ - Youthline NZ Youthline is an Youth development organisation that works with young people in NZ. Learn and grow with programs, workshops and trainings . Home | Depression and Anxiety | Depression and Anxiety | Welcome to a Brand New Day Everyone experiences depression and anxiety differently. We offer understanding, information, advice and stories of hope to help you navigate the tough times.
Otago Daily Times
2 hours ago
- Otago Daily Times
Vulnerable teen exploited, sexually abused
By Al Williams, Open Justice reporter Warning: This story contains details of sexual offending against a child and may be upsetting A teenager with a head injury who suffered years of sexual abuse says he is angry and hoped the man responsible will be jailed for 'a long time'. This month, the teen and his father confronted Shane Bell in court, telling him that other young people should not have to go through what the teen had. 'I find it hard at times to express myself,' the teen told the court. 'I am angry with him, with what he did to me.' He said Bell's actions had made him feel insecure. 'I could not trust other men, I thought they would do the same. I think he should go to jail for a long time - other teenagers should not have to go through this.' Bell, 49, sat expressionless in the Christchurch District Court as the teen and his father, flanked by supporters, struggled to contain their emotions at times during the sentencing hearing. The boy's father said he had a lot of trust in Bell being around his son. 'I don't have any trust in him now after what he has done to my son. I don't even like talking about him, as it makes me angry, what [he did] to my son. 'It has made me mindful of who I allow around my other kids, as I don't want this to happen to any of them. It has become a very traumatic experience.' He added that the experience 'has made me closer to my son, which I am grateful for'. The boy's father said the abuse had taken a toll on his family as they had to deal with residual trauma. The court heard the victim was extremely vulnerable, with a head injury, and Bell had taken advantage of him. A pre-sentence report indicated Bell was at high risk of reoffending, with distorted thinking and no display of remorse. Alongside charges of sexual connection with a young person and indecent acts with a young person, Bell faced charges of possessing hundreds of objectionable publications and making an objectionable publication that involved the victim. He would look after the victim, who would often spend time at Bell's house and stay overnight. Over 18 months, he performed sex acts on the boy and told him not to tell anyone. The victim was too scared to reveal what was happening. The boy told Bell it was illegal and tried to get away from him once, but Bell held him down. The victim believed Bell had committed the sex acts on him about 50 times. Bell also supplied the boy with cannabis and alcohol. Bell came to the attention of Polish authorities via a cellphone that had received child exploitation material, and in early 2023 the information was passed on to New Zealand police, who executed a search warrant on his home, seizing several devices. More than 1000 files were found on his laptop and cellphone, images involving young boys in a variety of sexual acts and a large array of animals being sexually violated. Bell's web history showed more than 100 searches for child exploitation material and bestiality. Also on his phone were photographs and videos of Bell and the victim. Judge Gerard Lynch described the offending as deplorable, vile and degrading. The judge said Bell had told authorities that if the victim had been unhappy with the offending, he would not have visited his home. Bell's main concern while in custody was with the wellbeing of his cats, Judge Lynch said. Bell was at high risk without treatment, and it had been noted that an intensive sexual treatment programme would be vital. Judge Lynch did not accept Bell's apology and sentenced him to six years and three months' jail. Bell was also placed on the Child Sex Offenders Register as part of his sentencing. MALE SEXUAL ABUSE SURVIVORS Where to get help: If it's an emergency and you feel that you or someone else is at risk, call 111. • If you've ever experienced sexual assault or abuse and need to talk to someone call the confidential crisis helpline Safe to Talk on 0800 044 334 or text 4334. (available 24/7) • Male Survivors Aotearoa offers a range of confidential support at centres across New Zealand - find your closest one here. • Mosaic - Tiaki Tangata: 0800 94 22 94 (available 11am-8pm) • Alternatively contact your local police station - click here for a list. If you have been abused, remember it's not your fault. Youthline NZYouthline NZ Youth Health Services, Youth helpline Program Centre NZ - Youthline NZ Youthline is an Youth development organisation that works with young people in NZ. Learn and grow with programs, workshops and trainings . Home | Depression and Anxiety | Depression and Anxiety | Welcome to a Brand New Day Everyone experiences depression and anxiety differently. We offer understanding, information, advice and stories of hope to help you navigate the tough times.
