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Commerce Commission v KiwiPure Ltd [2020] NZDC 9757

Published 02 July 2024

Sentencing — making unsubstantiated representations — water filtration system — virtual ioniser — lack of scientific testing — Fair Trading Act 1986, ss 12, 12A, 13, 13E & 13H — Commerce Commission v HRV [2018] NZDC 22699 — Commerce Commission v Fujitsu General New Zealand Ltd [2017] NZDC 21512 — Commerce Commission v Timber King Ltd and NZ Steel Distributor Ltd [2018] NZDC 510 — Commerce Commission v L D Nathan [1992] NZLR 160 (HC). Having been found guilty in an earlier Judge-alone trial, the defendant company appeared for sentence on seven charges of making unsubstantiated representations about a water filtration system that it designed and manufactured. The water filtration system had never been scientifically tested, so the defendants had no proper grounds for making the claims that had appeared in the defendant's advertising relating to the benefits of the system. The Court found that the defendant's marketing had been careless and that the defendant had consciously decided not to have the water filtration system properly tested. After examining authorities and making an allowance for the relatively small size of the defendant, the Court set a start point for fine of $180,000. The Court allowed discounts for lack of prior offending (only a small discount, given that the company had been formed exclusively to manufacture and market the water filtration system in question) and for cooperation with the investigation. The final fine was $162,000, along with court costs of $130 on each charge. Judgment Date: 12 February 2020