Full Decision

COMPLAINT NUMBER
12/631
COMPLAINANT
C. Southorn
ADVERTISER
NZ Transport Agency
ADVERTISEMENT
NZ Transport Agency Website
DATE OF MEETING
30 January 2013
OUTCOME
Not Upheld
SUMMARY
The website advertisement for the NZ Transport Agency (www.nzta.govt.nz) contained
information about registering vehicles online. The Advertiser promoted the online licensing
as being cheaper for customers rather than visiting an agency in person. The advertisement
stated, in part:
“It may take up to 5 working days for your new licence to arrive in the post if you do
this transaction online. If you cannot wait for 5 working days, go to an NZ transport
Agency agent who can complete the transaction and produce a licence label on the
spot.”
The Complainant said: “I completed two transactions on line and could not wait five days so
went to agency to be told I would have to pay a fee $4.11 per label. My complaint is that
nowhere does it say that a fee is charged for this service, if I had known I would not have
done it on line but gone direct to agency.”
Turning to the advertisement, the Complaints Board said the instructions were clear and the
extra fee was incurred because the Complainant duplicated the registration request by also
going to an agency in person - despite having already requested a registration label online after realising it would take 5 days to arrive in the post.
While the Complaints Board also acknowledged the amendment the NZ Transport Agency
had made to avoid any potential confusion for people in the future, it said nothing in the
original version of the advertisement contained anything which was likely to deceive or
mislead consumers about the online vehicle registration process, and it had been prepared
with a due sense of responsibility.
Accordingly, the Complaints Board ruled to Not Uphold the complaint.
[No further action required]
Please note this headnote does not form part of the Decision.
12/631
COMPLAINTS BOARD DECISION
The Chairman directed the Complaints Board to consider the advertisement with reference
to Basic Principle 4 and Rule 2 of the Code of Ethics. This required the Complaints Board to
consider whether the advertisements contained anything which, either directly or by
implication, was likely to deceive or mislead the consumer and if it had been prepared with a
due sense of social responsibility to consumers and to society.
The Complaints Board then turned to the response from the NZ Transport and noted where
it stated: “The Complainant is concerned they have been charged an extra $4.11 for a
service to reprint a label that they would not have been charged had they gone directly to an
NZTA agency in the first instance. And the Complainant is in fact correct - had they gone into
an agency directly the agent could have completed the transaction and printed the license
label on the spot, as outlined on the website, without having to pay the reprint fee. However,
unfortunately C. Southorn completed the transaction online before going into the agency to
pick up the new license label, effectively duplicating the label that was already in the mail
hence incurring the $4.11 reprint fee.
NZ Transport continued: “C. Southorn says that the website states "if you can't wait 5
working days go into an NZTA Agency and they can print label on the spot." However, the
website actually states "If you cannot wait for 5 working days, go to an NZ Transport
Agency agent who can complete the transaction and produce the licence label on the
spot". Rather than exiting out of the website at this point and going into an NZTA Agency to
complete the transaction, C. Southorn unfortunately continued through the transaction pages
and completed the relicensing online.
While C. Southorn did incur the $4.11 reprint fee, the Complainant has saved the $3.57
administration fee that they would have incurred had they completed the transaction in an
NZTA agency, so ultimately the Complainant has only paid $0.54 more than they would have
had they gone into the agency directly to complete the full transaction in the first place.”
Turning to the advertisement, the Complaints Board said the instructions were clear and the
extra fee was incurred because the Complainant duplicated the registration request by also
going to an agency in person - despite having already requested a registration label online after realising it would take 5 days to arrive in the post.
It also noted where NZ Transport stated: “We have not had any other complaints from
customers who have misinterpreted this information, and we believe that the content of the
website is written with a due sense of social responsibility and is not likely to mislead
consumers. However given the misunderstanding by C. Southorn, and to prevent other
consumers from potentially finding themselves in the same position, we have edited the copy
on the website to read:
‘If you cannot wait for 5 working days, you will need to go to an NZ Transport Agency agent
to complete the transaction and produce the licence label on the spot.’”
While the Complaints Board acknowledged the amendment the Advertiser had made to
avoid any potential confusion for people in the future, it said nothing in the original version of
the advertisement contained anything which was likely to deceive or mislead consumers,
and, as such, it had been prepared with a due sense of responsibility.
Therefore, the Complaints Board ruled the advertisement was not in breach of Rule 2 or
Basic Principle 4 of the Code of Ethics.
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12/631
Accordingly, the Complaints Board ruled to Not Uphold the complaint.
DESCRIPTION OF ADVERTISEMENT
The website advertisement for the NZ Transport Agency (www.nzta.govt.nz) contained
information about registering vehicles online. The Advertiser promoted the online licensing
as being cheaper for customers rather than visiting an agency in person. The advertisement
stated, in part:
“REGO / 2012
Buy your rego
Online now
And the delivery’s free.
…
It may take up to 5 working days for your new licence to arrive in the post if you do
this transaction online. If you cannot wait for 5 working days, go to an NZ transport
Agency agent who can complete the transaction and produce a licence label on the
spot.”
COMPLAINT FROM C. SOUTHORN
Do your vehicle licensing on line. The promotion for this was to do it on line and it is cheaper.
I went to web site see attached screen shot where it says if you cant wait 5 working days go
into an NZ Transport Agency and they can print label on the spot I completed two
transactions on line and could not wait five days so went to agency to be told I would have to
pay a fee $4.11 per label. My complaint is that no where does it say that a fee is charged for
this service, if I had known I would not have done it on line but gone direct to agency
Code of Ethics
Basic Principle 4: All advertisements should be prepared with a due sense of social
responsibility to consumers and to society.
Rule 2: Truthful Presentation - Advertisements should not contain any statement or
visual presentation or create an overall impression which directly or by implication,
omission, ambiguity or exaggerated claim is misleading or deceptive, is likely to
deceive or mislead the consumer, makes false and misleading representation,
abuses the trust of the consumer or exploits his/her lack of experience or knowledge.
(Obvious hyperbole, identifiable as such, is not considered to be misleading).
RESPONSE FROM ADVERTISER, NZ TRANSPORT AGENCY
Thank you for your letter … in which you ask for the NZ Transport Agency's comments in
regards to the complaint you have received about the transaction centre on the NZTA
website. No advertising agency is involved in this website.
You have indicated in your letter to us that the concerns of the complainant fall under two
sections of the Advertising Code of Practice:
Code of Ethics - Basic Principle 4: Social Responsibility; and Code of Ethics Rule 2:
Truthful Presentation
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12/631
NZTA's online transaction centre allows you to complete some motor vehicle and driver
licensing transactions online and we believe it clearly outlines the process to do this. As the
complainant mentions, it is cheaper to complete the vehicle relicensing transaction online, as
you save $3.57 in administration costs. However to do this you will need to wait for up to 5
working days for the new licence label to arrive in the post, as stated on the website.
The Complainant is concerned they have been charged an extra $4.11 for a service to
reprint a label that they would not have been charged had they gone directly to an NZTA
agency in the first instance. And the Complainant is in fact correct - had they gone into an
agency directly the agent could have completed the transaction and printed the license label
on the spot, as outlined on the website, without having to pay the reprint fee. However,
unfortunately C. Southorn completed the transaction online before going into the agency to
pick up the new license label, effectively duplicating the label that was already in the mail
hence incurring the $4.11 reprint fee.
C. Southorn's says that the website states "if you can't wait 5 working days go into an NZTA
Agency and they can print label on the spot." However, the website actually states ‘If you
cannot wait for 5 working days, go to an NZ Transport Agency agent who can complete
the transaction and produce the licence label on the spot’. Rather than exiting out of the
website at this point and going into an NZTA Agency to complete the transaction, C.
Southorn unfortunately continued through the transaction pages and completed the
relicensing online.
While C. Southorn did incur the $4.11 reprint fee, the Complainant has saved the $3.57
administration fee that they would have incurred had they completed the transaction in an
NZTA agency, so ultimately the Complainant has only paid $0.54 more than they would have
had they gone into the agency directly to complete the full transaction in the first place.”
We have not had any other complaints from customers who have misinterpreted this
information, and we believe that the content of the website is written with a due sense of
social responsibility and is not likely to mislead consumers. However given the
misunderstanding by C. Southorn, and to prevent other consumers from potentially finding
themselves in the same position, we have edited the copy on the website to read:
"If you cannot wait for 5 working days, you will need to go to an NZ Transport Agency agent
to complete the transaction and produce the licence label on the spot."
Please don't hesitate to contact me if you have any further questions.
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