Telcos complained about most

Spark has been identified as New Zealand's most-complained-about company in a report released by the Commerce Commission today.

The Consumer Issues 2015 report notes the telecommunications company received 128 complaints under the Fair Trading Act last year.

This was closely followed by Vodafone, which received 112 complaints in 2014 and Auckland Academy of Learning, which received 106 complaints.

ANZ Bank received the fourth most complaints, with 99, followed by Trade Me sellers, with 78 complaints.

The commission noted that 31 complaints to Spark and 15 to Vodafone were triggered by the companies' introduction of a $1.50 paper invoice processing fee.

The complaints were considered by the commission to not be a breach of the act.

A quarter of New Zealanders' complaints under the Fair Trading Act relate to just 24 traders, the report found.

It also found that online trading generates 55 per cent of Fair Trading Act complaints -- double the number laid against physical retailers.

The data comes from a range of sources including the commission, Government and community agencies.

The commission also found that telecommunication providers and home appliance retailers continue to generate the most complaints overall.

Meanwhile, motor vehicle credit contracts generate 30 per cent of credit complaints, and finance companies are the most complained about lenders -- followed by mobile traders.

The Commerce Commission enforces three key laws:

* The Fair Trading Act (1986) prohibits false and misleading behaviours by businesses.

* The Credit Contracts and Consumer Finance Act (2003) protects consumers when they borrow money

* The Commerce Act (1986) prohibits anti-competitive behaviour and mergers

The report also identified 93 issues and risks to consumers and markets.

The issues included:

* Lenders charging unreasonable fees

* The mobile trader business model

* Disproportionate number of complaints generated by a small number of traders (in particular the telecommunications and domestic appliance retail industries)

* Issues that affect vulnerable consumers

* Participation in industry associations enabling anticompetitive conduct

* Misrepresentation of country of origin labelling

* Supermarket misrepresentations

Minister of Commerce and Consumer Affairs Paul Goldsmith welcomed the report.

"I am pleased to see this comprehensive analysis from the Commerce Commission which helps to inform and prioritise their work."

 

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