district court logo

Commerce Commission v Spark New Zealand Trading Ltd [2019] NZDC 7801

Published 22 September 2021

Sentencing — false or misleading representations — billing beyond termination date charges — continuing to bill customers who had terminated their accounts — welcome credit charge — credit only available to customers who telephoned — failing to apply credit properly — Commerce Commission v Alstom Holdings SA [2009] NZCCLR 22 — Commerce Commission v L D Nathan & Co Ltd [1990] 2 NZLR 160 — Fair Trading Act 1986, ss 13(i) & 41. The defendant appeared for sentencing after pleading guilty to nine counts of making false or misleading representations. Eight of the charges related to the defendant's practice of continuing to bill its customers after the 30-day period following the customers terminating their contracts, in breach of the terms and conditions of the customer contracts. This offending continued for three and a half years, and as a result almost 72,000 of the defendant's customers overpaid $6,588,612 to the defendant. The final charge related to letters that the defendant sent to 163,535 prospective customers, offering a $100 joining credit but failing to disclose that the credit was only available to those who telephoned to accept the offer, not to those who joined online. Further, some of the customers who did telephone to accept the offer still did not receive the $100 credit. The Court set a start points for fine of $900,000 for the billing offending, and $200,000 for the welcome credit offending. The Court adjusted the total fine of $1.1 million to $1 million to recognise the totality principle, and then applied discounts for cooperation with the investigation, donations to charity and early guilty plea. The final amount of fine was $675,000. Judgment Date: 12 April 2019.