What’s new

The Commerce Commission (Commission) has announced its renewed enforcement priorities for 2025/26 (see here) and provided updates on its upcoming enforcement action. We have summarised the renewed priorities and key insights and takeaways shared by the Commission.

Enforcement action on the horizon 

The Commission announced that it will soon be taking enforcement action in the following areas:

• Residential real estate: The Commission has said it will soon take action against several companies for alleged cartel conduct, specifically price-fixing. 

• Customer allocation agreements: The Commission has said it will be taking enforcement action against two companies for agreeing not to compete for customers.

• Unconscionable conduct: The Commission plans to prosecute two businesses for targeting elderly and vulnerable consumers with misleading sales tactics. These will be the first cases under the unconscionable conduct prohibition since it came into force on 16 August 2022. 

Details of these cases will be released in due course.

Six specific priorities for 2025/26

The Commission has identified six specific enforcement priorities for the coming year:

• Cartels: Specifically conduct that impacts the competitive process for procurement of public services and infrastructure contracts.

• Illegal online sales practices: Key focus areas include:

  • Subscription traps 

  • Fake reviews 

  • Misleading scarcity claims 

  • Misleading social proof sales tactics 

  • Drip pricing 

  • “Ghost shops” (websites that appear to have physical stores but are actually drop-shippers) 

  • Ensuring online information is accurate, honest, and can be substantiated

• Grocery sector breaches: The Commission is focused on compliance with codes and obligations, particularly regarding anti-competitive behaviour and the obligation to act in good faith.

• Telecommunications sector breaches: In particular, monitoring people-focused technology transitions, such as the 3G shutdown, to ensure accurate information about impacts on access is provided and that retailers support informed transitions.

• Motor vehicle sales and finance: The Commission is focused on motor vehicle lenders providing credit to vulnerable consumers.

• Unconscionable conduct: The Commission is actively pursuing enforcement to help develop law around unconscionable conduct.

The most notable change from the 2024/25 enforcement priorities is the removal of non-compete agreements. The Commission has indicated that non-compete agreements will now be treated as enduring work.

Acting swiftly on product safety and consumer finance issues

The Commission signalled that it would act quickly on product safety issues, particularly those involving products for children, and on consumer finance matters affecting vulnerable consumers. Protecting vulnerable consumers remains an enduring priority, especially in light of ongoing cost-of-living pressures. The Commission will also move urgently to prevent irresponsible lending practices.

Other areas of concern (outside specific priorities)

The Commission highlighted several areas of focus beyond its stated priorities, including:

• Third-party platforms linked to online sales conduct.

• Environmental and greenwashing claims.

• Unfair contract terms, particularly terms in contracts that could cause significant consumer harm. 

Key takeaways 

The Commission’s update of its enforcement priorities and indication of its current focus areas is a good opportunity for businesses to reflect on their compliance with relevant competition and consumer laws and identify any practices that may pose compliance risks, particularly those related to the updated priorities. Responding to Commission investigations is resource-intensive and costly, and we recommend businesses take proactive steps to ensure compliance.

We advise on the full suite of competition and consumer law issues and assist businesses in various industries to ensure compliance, respond to regulatory inquiries, investigations and enforcement action. If you have any questions about the Commission’s enforcement priorities and how they may impact your business, please contact one of our competition and consumer law experts. 

This article was co-authored by Soomin Yang, a Solicitor in our Competition team.