EDITOR’S NOTE:This commentary was edited to reflect the fact that the response from the Deputy Clerk was meant to say that the Parliament using the circular was a normal means of communication.
COMMENTARY: It is time for the practice of using circulars to make decisions in Parliament was reviewed.
Circulars should only be used on agendas that are urgent.
They should not be used on important issues such as pay rises for Parliamentarians.
Such issues should be properly debated in the House so that they can be recorded in the minutes for the public to read and also broadcast for people to listen.
As Kaniva News reported yesterday, the government’s use of a circular to canvas MPs’ views on a pay rise has been called into question.
However, the Legislative Assembly’s Deputy Clerk, Dr Sione Vikilani, said the circular was a normal means of communication approved by the House and any information sent through it was legal.
In Tongan he said: “Ko e tohi ‘avetakai ko e founga ngāue pe ‘oku ‘ataa ke ngaue’aki pea ‘oku ‘ikai ke ta’efakalao ha tu’utu’uni ‘i hono fakahoko ‘i he founga koia”.
Dr Vikilani did not respond to a question asking why a circular was used to ballot the pay hike and not a face-to-face voting in the House.
In 2018 Tonga’s former Prime Minister, the late ‘Akilisi Pōhiva, warned that using circulars in Parliament was open to abuse.
Speaking to Kaniva News, Pōhiva said the use of circulars was normal but did not allow for discussion.
MPs, especially the Opposition, could not debate whatever agenda was being circulated.
He said that traditionally Speakers and the Noble’s representatives, who were mostly the majority in the House, used it to ballot issues they wanted to be decided in their favour.
The late Prime Minister’s comments were made during an interview in 2018 about the decision to approve an invitation from the Tonga Rugby League for a Parliament delegation to attend a match.
The decision was adopted through a circular, by collective resolution of Parliament.
Prime Minister Pōhiva’s concerns are just as relevant today as they were four years ago.
Debates and voting in the House must be open so that all citizens can see how their MPs voted and debate can be held in public.
This was illustrated in our story yesterday when Dr Vikilani would not say how MPs voted on the circular.
A Parliament with secrets is not truly democratic.
Nuku’alofa — Early signs of progress are emerging at the Ministry of Lands, with its newly launched call centre already delivering faster responses and improved public service.
Call centre operators handle public inquiries on the day the Lands Ministry’s new call centre was launched, part of ongoing reforms to improve service delivery.
Lands Minister Taniela Fusimālohi says the system is working well, with early results emerging just two weeks after its launch, marking a positive step as the Ministry seeks to rebuild public trust following years of criticism and a backlog estimated at around 7,000 cases.
In the first eight working days alone, the call centre received more than 200 inquiries from the public via phone and email, the Minister said, with over 80 already processed — an early indication that the new approach is beginning to ease pressure on the system.
He said that with the centre now in operation, members of the public are no longer required to visit the Ministry’s counter for routine inquiries, with all requests now channelled through the call centre to allow staff more time to access records and provide accurate, consistent responses.
Fusimālohi said the shift is improving efficiency while reducing the risk of favouritism, and lowering “the likelihood of any exchange of money or gifts” linked to public dealings with the Ministry.
The introduction of technology-driven systems is seen as key to clearing the backlog and restoring confidence in its services, he said.
Face-to-face meetings will still be arranged when necessary, with appointments made for clients to meet relevant divisions, the Chief Executive Officer, or the Minister.
However, the Ministry is urging the public to avoid visiting the office simply to check the status of applications, advising instead that the call centre provides a quicker and more cost-effective option.
Callers are encouraged to have their phone number and email details ready to help staff respond promptly.
Officials say while challenges remain, the early performance of the call centre shows that reforms are starting to take hold — offering a glimpse of a more efficient and accountable Lands Ministry.
Nuku’alofa — Tonga’s media is under growing strain, with the country slipping further down global press freedom rankings as political pressure, restrictive laws and economic hardship tighten around journalists.
The latest 2026 Reporters Without Borders (RSF) World Press Freedom Index places Tonga at 51st in the world, down five places from 46th last year — a decline that reflects deep‑seated weaknesses in the country’s media environment.
Tonga’s latest ranking places it in the middle of Pacific nations, but slipping behind Fiji, which has surged to 24th (76.76), while only just staying ahead of Samoa at 59th (64.53).
The comparison shows a widening gap, with Fiji strengthening its media environment and Tonga losing ground, while Samoa remains close enough to challenge Tonga’s position, highlighting growing pressure on the Kingdom to address the political, legal and economic constraints affecting its media freedom.
Watchdog Role Under Pressure
Since the democratic reforms of 2010, Tonga’s independent media have steadily taken on a watchdog role. But that role is increasingly being tested.
RSF says some politicians target journalists who scrutinise them, while growing royal influence and recent political instability have heightened pressure on press freedom.
At the same time, legal protections remain fragile. Although the constitution guarantees media freedom, enforcement is inconsistent, and recent laws governing online communication and “sensitive information” have created uncertainty. Journalists can face unclear legal risks, encouraging many to avoid controversial reporting altogether.
This has contributed to a culture of self-censorship. In Tonga’s small and closely connected society, reporters are rarely threatened physically, but often hold back on sensitive topics to avoid political backlash or legal trouble.
Economic pressure is another major factor behind the country’s decline. Many media outlets operate in a fragile market and depend heavily on advertising — including government funding — which can influence editorial decisions. The situation worsened after the COVID‑19 downturn and the 2022 volcanic eruption, leaving the industry financially vulnerable and journalists focused on survival.
Limited space, rising pressure
The media landscape itself is limited. With print media virtually non‑existent across Tonga’s scattered islands, the space is dominated by state broadcasting and a small number of online outlets. This narrow environment reduces diversity of voices and makes the sector more sensitive to pressure.
Some issues also remain largely off‑limits. Topics such as police conduct, the death penalty and child marriage are rarely reported, reflecting both legal uncertainty and deep-rooted social pressures that continue to shape what can be safely published.
Regionally, Tonga now trails behind Fiji, which has climbed sharply in the rankings, while Samoa sits just below — signalling a tightening contest among Pacific nations over media freedom standards.
Globally, the picture is even more troubling. RSF says press freedom has dropped to its lowest level in 25 years, with more than half of countries classed as problematic or worse.
For Tonga, the message behind the latest ranking is clear: journalists are still working, but not fully free. Political pressure, restrictive laws, financial survival and self-censorship are combining to quietly erode the independence that democracy once promised.
By Ayla Yeoman, Local Democracy Reporting of RNZ and is republished with permission
Some Tauranga families are taking their loved ones outside the city for cremations because it is cheaper, funeral directors say.
Some Tauranga families are taking loved ones out of the city for cheaper burial and cremation options. Councillor Glen Crowther blames Tauranga’s fee structure for the trend. Photo: NZME / LDR
It comes as Tauranga City Council proposes changes to its cemetery fees to stem a growing financial deficit.
The council has been using higher cremation fees – the vastly more popular service – to subsidise burial fees, but one councillor believes that’s driving cremation customers elsewhere and making the financial situation worse.
Tauranga’s cemetery and cremation services are funded by user fees, not council rates, but run at a deficit of about $500,000 a year.
To address this, the council has proposed to lower its cremation fees and increase burial charges by thousands of dollars.
The council, which owns and operates Tauranga’s only crematorium, has proposed to drop its adult cremation fee by about $200 to $777.
Hamilton City Council charges $695 for an adult cremation, and the fee is $705 at that city’s privately-owned Te Rapa crematorium.
Te Rapa crematorium owner Carla Turner, who also operates six funeral homes across the central North Island, including Simply Funerals in Tauranga, said Tauranga’s cremation prices were “ridiculous” and had pushed families and funeral homes to seek cheaper alternatives.
Funeral home and crematorium owner Carla Turner. Photo: LDR / Supplied
Turner said since Legacy Funerals stopped operating its cremator, prices had risen sharply, making it far cheaper to cremate loved ones in Hamilton or Rotorua.
She said her business collected bodies from Tauranga several times a week to cremate in Hamilton.
“It’s much cheaper,” she said.
Turner said families occasionally still wanted their loved one cremated in Tauranga.
Even if Tauranga brought its prices down as proposed, she would prefer to continue cremating in Hamilton, as there was less financial risk for funeral directors.
She said Hamilton City Council invoiced families directly, and Tauranga City Council no longer offered its 10 percent funeral director discount, which previously helped offset the risk of families paying late or not at all.
Hope Family Funerals owner Tony Hope said families decided where their loved ones were cremated.
Tony Hope of Hope Family Funeral Services. Photo: LDR / George Novak
“At the moment, cremation in Hamilton is a more affordable option, so we make families aware of that.
“Around half of the families we support now choose Hamilton over Tauranga, while the other half still choose Tauranga.”
He said if the council’s fee for cremation, plus transport costs, became competitive with what Hamilton offered, he would expect more families to choose cremation in Tauranga.
Hope said the locally-owned business started looking at alternative cremation options after Tauranga City Council hiked cremation fees last year, despite feedback that this would put pressure on families.
“Having access to these alternatives has allowed families to retain choice and reduce overall costs,” he said.
Hope said understanding full funeral pricing meant looking beyond the cremation fee alone, noting it was one part of a bundled service covering legal, logistical and professional work required to carry out a cremation.
Matua‑Ōtūmoetai ward councillor Glen Crowther said the council pricing had reached a point where out‑of‑district cremations were cheaper than Tauranga services, even with transport costs included.
Ōtūmoetai ward councillor Glen Crowther. Photo: LRD / David Hall
“They are actually cheaper to come all the way over here, pick up your loved one, and then take them over, and they’ll be cremated than what we would charge to do it if it all happened here,” Crowther said.
He said the higher fees were driving business elsewhere, worsening the council’s financial position.
“If we don’t drop our charges, we’re losing money anyway because we’re losing hundreds of thousands of dollars a year of cremations that could come to us.”
Crowther said the council had been overcharging for cremations and undercharging for burials, creating what he described as a “vicious cycle” where price increases led to lost volume, deeper deficits and further pressure to raise fees.
“We’ve been running it at a deficit, and the debt has built up,” he said.
“If we’re still going to stick to user fees and charges without any rates, some of those charges have to go up. I don’t want to overcharge the public.”
Tauranga City Council head of spaces and place Alison Law said that historically, cremation fees in Tauranga were set higher than the cost and had subsidised burial services.
She said the council was now proposing a shift to a more transparent “cost of service” approach through the User Fees and Charges 2026/27 consultation.
Proposed changes included dropping adult cremation fees from $979 to $777, increasing adult burial fees from $5614 to $8426, and ash garden burial fees from $1500 to $4850.
Law said the council carried out 1308 cremations and 128 burials in 2025, with long‑term trends showing about 87 percent of services were cremations and 13 percent burials.
“While the proposed cost increases may influence some decisions, council recognises that choices around burial or cremation are personal and influenced by many factors,” she said.
Law said the proposals in its User Fees and Charges 2026/27 were not final, and the council welcomed public and sector feedback through consultation, which was open until 22 May.
Submissions could be made via the council’s website or via printed forms available at libraries.
– LDR is local body journalism co-funded by RNZ and NZ On Air.
Nuku’alofa, Tonga —A man has been sentenced to imprisonment after admitting to breaking into the Tonga Communications Corporation (TCC) office and stealing electronic goods worth more than $53,000.
Kasiano Tukuhaukava, 21, appeared before the Supreme Court in Nuku‘alofa, where Justice Petunia Tupou KC handed down a total sentence of two and a half years’ imprisonment after the defendant pleaded guilty to serious housebreaking and theft.
The court heard that on 12 July 2024, Tukuhaukava smashed a window of the TCC office at Fasi around 3am using a metal rod before entering the premises and stealing multiple high-value mobile phones.
An employee arriving at work later that morning discovered broken glass and reported the incident to police.
The stolen items included a range of Apple iPhones, from iPhone 6 models to newer iPhone 14 devices, with a combined value of $53,160..pdf) Only three of the 15 stolen phones were eventually recovered.
Offender Admitted Crime
Tukuhaukava was later arrested on an unrelated matter in August 2024, during which he admitted to the TCC break-in and theft.
The court was told he sold the stolen phones to friends.
According to a pre-sentencing report, the defendant said he committed the crime after drinking with friends and wanted money to continue drinking.
Prior Offending and Escape
Justice Tupou noted that Tukuhaukava had previous convictions and had received lenient penalties in the past, including fines and discharges without conviction.
In a concerning development, the court also heard that while awaiting sentencing for this case, the defendant escaped from custody and was later sentenced by the Magistrates’ Court to seven months’ imprisonment for that offence.
He had already served two months of that sentence at the time of the Supreme Court hearing.
The court described serious housebreaking as a significant offence in Tonga, often linked to more serious criminal behaviour, and emphasised the importance of deterrence and public protection.
Justice Tupou said Tukuhaukava’s actions showed premeditation and a disregard for previous opportunities for rehabilitation.
Partly Suspended
The court initially considered a higher sentence but reduced it to avoid imposing what was described as a “crushing” first term of imprisonment for a young offender.
After allowing for his early guilty plea and cooperation with police, Tukuhaukava was sentenced to 2½ years’ imprisonment, with the final 12 months suspended for two years under strict conditions.
These conditions include not committing further offences, reporting to probation authorities, and completing rehabilitation programmes.
Time to Be Served
Taking into account the cumulative sentence for his escape from custody and eligibility for remission, the defendant is expected to serve approximately 23 months in prison.
Tokyo — A Tongan veteran rugby player who has lived most of his adult life in Japan and played for its national rugby team, has been downgraded under new league rules limiting his status as a domestic player.
Lomano Lemeki, who moved to Japan at the age of 19, built his life in the country—marrying a Japanese partner, raising a family, and gaining Japanese citizenship. He also went on to play for Japan’s national rugby team.
Despite those ties, the country’s top-tier rugby league has ruled that Lemeki will no longer be considered a fully domestic player under its revised classification system.
Under the new regulations, players are grouped into categories that determine their eligibility and playing opportunities. To qualify as an “A1” player—the highest domestic classification—individuals must have either completed at least six of their nine years of compulsory education in Japan, been born in Japan, or have parents or grandparents born there.
Players who do not meet those criteria, including naturalised citizens like Lemeki, are classified as “A2,” a category subject to limits that could restrict their time on the field. While teams can field unlimited A1 players, A2 players must compete for limited slots.
The decision has drawn criticism, particularly from Lemeki himself, who expressed his frustration publicly.
“I am a Japanese citizen, but just not on the rugby field,” Lemeki posted. “Rugby is a sport for all people.”
The league has defended the rule change, stating that it is designed to protect opportunities for players developed within Japan’s domestic system. Officials say the model is similar to long-standing foreign player limits seen in other professional sports in the country, including baseball, basketball, and football.
However, the move has raised broader questions about how nationality is defined in sport, particularly for athletes who have built long-term lives in countries different from their birthplaces.
Lemeki’s case highlights the tension between legal citizenship and sporting eligibility, as governing bodies seek to balance inclusivity with the development of local talent.
For many observers, the situation poses a fundamental question: whether national identity in sport should be based on birthplace and heritage—or on lived experience and contribution.
Nukuʻalofa — A towering figure in Pacific theology has died, leaving behind a legacy that profoundly shaped global Christian thought.
Professor Jione Havea
Rev. Prof. Jione Havea, a prominent Tongan Methodist theologian and biblical scholar, passed away on 29 April.
Widely respected across the Pacific and internationally, Havea was known for his pioneering work in contextual, postcolonial, and Pasifika theologies. His scholarship challenged traditional theological frameworks and elevated Pacific voices within global theological discourse.
Havea’s work focused on reinterpreting Christian theology through the lived experiences, cultures, and histories of Pacific peoples. He was regarded as a leading figure in reshaping theology into a more inclusive and culturally grounded conversation.
The Council for World Mission (CWM) confirmed his death, describing it as a profound loss to the church and the wider theological community. In a statement, the organisation paid tribute to Havea’s lifelong commitment to justice, community, and transformative mission.
A Prophetic Voice from the Pacific
Rev. Dr Havea was widely respected for his work in contextual and postcolonial theology, drawing deeply on the lived realities of Pacific communities. His scholarship consistently challenged systems of oppression, including patriarchy and white supremacy, and called for a more inclusive and compassionate understanding of faith.
CWM said his theology was shaped by “the struggles and hopes of people, especially those at the margins,” making him a prominent advocate for justice and dignity within the church.
Havea played a significant role within the Council for World Mission, serving as a Partner in Mission and a key facilitator in its Discernment and Radical Engagement (DARE) programme. Through this work, he helped develop DARE into a global platform for theological reflection and dialogue.
His leadership in contextual Bible reading and global forums contributed to the formation of a new generation of theologians, pastors, and students who engage scripture as a living and critical space for liberation and transformation.
Rev. Dr Havea’s influence extended through his extensive editorial and academic work. He contributed to numerous theological publications, particularly within the CWM DARE series, including titles such as Gospel for Workers, Religion and Power, Theologies from the Pacific, and Scripture and Resistance.
These works, which amplify voices from the margins, have become key resources in theological education across different parts of the world.
Mentor and Teacher
Beyond his formal roles, Havea was widely recognised as a dedicated mentor. His teaching was described as marked by intellectual courage, humility, and honesty, leaving a lasting impact on students, church leaders, and academic institutions globally.
Colleagues recalled his long-standing engagement with ecumenical organisations, including the World Council of Churches, where he contributed to global conversations on mission and evangelism.
Rev. Dr Havea is survived by his wife, Prof. Monica J. Melanchthon, and their daughter.
As tributes continue to pour in, church leaders and scholars across the Pacific and beyond are remembering him as a transformative thinker and “prophet of the Pacific,” whose legacy will endure through his writings, teachings, and the many lives he influenced.
His work continues to inspire ongoing efforts toward justice, dignity, and a more inclusive understanding of faith.
Nuku’alofa, Tonga — A series of nighttime home invasions that left victims terrified in the safety of their own homes has resulted in a man being jailed in the Supreme Court.
Talikavili Loloa was jailed for three years and six months after admitting charges including serious housebreaking, theft, assault, and serious causing bodily harm.
The 25-year-old pleaded guilty to the charges, revealing a pattern of offending that escalated from property crime to violent attacks.
Lord Chief Justice Malcolm Bishop KC described the offending as “serious and disturbing,” noting it involved multiple victims and escalating violence over a short period.
The court heard that Loloa’s offending began in November 2024 when he stole equipment valued at about $5,000 from a residence in Tatakamotonga after entering the property unlawfully.
He later attempted to sell some of the stolen items before being reported to police.
However, the offending quickly escalated into violent intrusions into homes at night.
Women Attacked in Their Bedrooms
In one incident, Loloa entered a home in Lapaha at around 1am and covered the mouth of an 18-year-old schoolgirl while she slept, causing her to scream before he fled the scene.
The court heard the young victim continues to suffer anxiety and no longer feels safe sleeping in her own room.
In a more serious incident later the same night, Loloa entered another home and attacked a 50-year-old woman while she was asleep.
He covered her face and mouth, assaulted her, and repeatedly punched her in the head during a struggle before being restrained by her son and others.
Medical evidence confirmed she suffered multiple injuries, including bruising, cuts, and swelling.
Threat to Community Safety
Justice Bishop said the offending struck “at the very heart of community safety and security,” emphasising that people must feel safe in their own homes.
The judge noted the progression from property offending to violent and intrusive conduct, describing it as a serious aggravating factor.
Victim impact statements revealed ongoing fear and anxiety among the complainants, with all reporting lasting psychological effects despite forgiving the offender.
Mitigating Factors Considered by Court
The Court took into account Loloa’s early guilty plea, which spared the complainants from giving evidence and demonstrated acceptance of responsibility.
He also cooperated with Police and has a limited prior history, comprising a single minor conviction. In addition, the Court noted his relative youth and significant family responsibilities, including the care of young children.
Taken together, these factors warrant a substantial, though not excessive, reduction in sentence.
Starting Point and Reduction
The court adopted a starting point of six years’ imprisonment for the most serious offence but reduced the sentence to reflect Loloa’s guilty plea, cooperation with police, and personal circumstances.
He was ultimately sentenced to four years and six months’ imprisonment, with the final 12 months suspended on conditions.
The effective sentence to be served is three years and six months, backdated to November 2025.
Justice Bishop rejected submissions for a non-custodial sentence, stressing that imprisonment was necessary to reflect the gravity of the crimes, deter future offending, and protect the community.
The court also noted that failure to comply with the conditions of the suspended portion could result in Loloa serving the remainder of his sentence in full.
Nku’alofa, Tonga — The Supreme Court has dismissed an election petition challenging the Tongatapu 9 constituency result, ruling that bribery allegations against Member of Parliament Sevenitini Toumo‘ua were not proven.
Minister of Infrastructure and Civil Aviation Seventeen Toumo’ua
In a judgment delivered on 17 April 2026, Acting Justice Langi found that petitioner Tevita Tukunga failed to establish beyond reasonable doubt that Toumo‘ua committed bribery during the November 2025 general election campaign.
Tukunga had sought to void the election result, alleging that Toumo‘ua unlawfully influenced voters by promising gifts, including lawn mowers, and by approving financial assistance to a community group.
Lawn mower allegation rejected
The primary allegation centred on claims that Toumo‘ua promised a voter a lawn mower during a campaign meeting in Nakolo shortly before the election.
The court accepted that Toumo‘ua told the voter to check with his secretary to see if any lawn mowers remained from those previously purchased using constituency funds. However, Justice Langi ruled this did not amount to bribery.
While the statement fell within the legal definition of “agreeing to give” a gift, the court found there was a credible and innocent explanation — that the respondent was responding to a request within the context of an existing community distribution programme.
The judge also raised concerns about the reliability of the key witness, pointing to inconsistencies in his evidence and concluding that his complaint appeared influenced by frustration at not receiving the mower.
Because a reasonable innocent interpretation remained open, the allegation did not meet the strict criminal standard required in election bribery cases.
Community funding claim fails
A second allegation involved a $2,000 payment to a local pickleball committee, which the petitioner claimed was intended to influence voters.
However, the court found that the funding had been approved in July 2025—months before the election campaign—and formed part of routine constituency assistance.
Evidence showed the payment was requested by the community and later distributed in September at the group’s request to support a sporting event.
Justice Langi ruled there was no evidence the payment was made to influence votes or targeted at a defined group of electors.
High legal threshold not met
The court emphasised that electoral bribery is treated as a “quasi-criminal” offence and must be proven beyond reasonable doubt.
In both allegations, the judge found the petitioner failed to exclude reasonable alternative explanations consistent with innocence.
Possible appeal under consideration
The court dismissed the petition and upheld Toumo‘ua’s election victory.
Tukunga was also ordered to pay legal costs, to be assessed if not agreed.
Following the decision, petitioner Tukunga told Kaniva News he was working with his lawyer to determine whether to appeal the ruling. No appeal had been filed at the time of publication.
Reader discretion advised: This report includes details of child sexual abuse material
A guilty plea in Auckland, coupled with the discovery that Reopoamo Darklie Tufunga held over 64,157 child exploitation images and videos and shared nearly 18,000 with others, has sealed his fate.
A 35‑month prison sentence was handed down to the 27‑year‑old in the Auckland District Court, marking a significant outcome in the case.
The court said several electronic devices were seized as part of an investigation by the Department of Internal Affairs’ digital child exploitation team, which executed a search warrant at Tufunga’s home in May 2023.
According to a report by the New Zealand Herald, the sheer volume of objectionable material found in the offender’s possession was described as deeply disturbing, highlighting the importance of his being brought to justice and prevented from causing further harm.
The report added that the distribution of child sexual abuse material and interaction with other offenders fosters dangerous behaviour and heightens the risk of physical harm to children.
Judge Belinda Sellars, KC, directed that Tufunga be listed as a child sex offender and that all electronic devices involved in the offending be destroyed.
Helplines
Advice and support for parents and caregivers on protecting their children online is available at KeepItRealOnline.govt.nz. If you have concerns about potential online harm or wish to report a crime, contact the digital child exploitation team at DIA. For situations where abuse is occurring or a child is in immediate danger, contact the police at 111. Victims of child or sexual abuse crimes can access help and support services by contacting:
By Finn Blackwell of RNZ and is republished with permission
Gym chain City Fitness has battled claims in court it deceived customers with misleading membership prices.
The fitness giant faced 16 charges under the Fair Trading Act.
City Fitness St Lukes, Auckland. (Source: Google Maps) (Source: Supplied)
The Commerce Commission claimed City Fitness’ advertised membership prices were misleading.
It said the gym chain did not include a compulsory transaction fee, which the commission said should have been included in the advertised price.
Labelling the 3% fee as a “transaction fee” that was not related to the costs for processing membership fee payments was also misleading, the commission said.
In the Auckland District Court on Thursday, the lawyer for the commission, Jacob Barry, said nearly 200,000 people had been affected by the costs over 16 months.
He described it as a cynical marketing ploy.
“As best as I can tell, none of the money has returned to the customers.”
He said City Fitness had been deceptive.
“City Fitness obviously saw there was a competitive benefit in pursuing it this way,” Barry said.
“It gets the benefit of the market, being able to sell its memberships with that attractive looking number, but it’s doing that in a false way and, in my submission, in a consciously false way.”
The fee generated just under $1.6 million during that period, which Barry said was illegitimately obtained.
City Fitness continued to advertise the membership price despite being alerted the Commerce Commission was investigating, which Barry said was reckless.
Representing City Fitness, James Every-Palmer KC, said the gym chain had not been deceptive and, by the time customers were paying, they would have known about the fee.
“It arose out of good intentions from City Fitness to keep prices as low as possible, however, they fell down through a flawed implementation,” he said.
“But, on the other hand, there’s no evidence that a single consumer has suffered actual harm, had ended up signing up without knowing about the fee, or would’ve signed up if the transaction fee had had a different label.”
Every-Palmer said the problem arose through carelessness, not through an intention to deceive.
He said there was no evidence of deliberate deceit.
“I’ve heard today that the commission says the most serious thing here is that general cost recovery, including the cost of processing transactions, was recovered through a transaction fee, that that dwarfs the unobtainable price problem,” Every-Palmer said.
“But there’s simply no evidence that that was a deliberate attempt to mislead people, that that was, in some way, meant to make them think that that was their actually cost of transacting, and there’s simply no evidence that it made any difference to anyone…”
Judge David Clark reserved his decision.
At the time the gym franchise was charged, the commission’s competition, fair trading, and credit general manager Vanessa Horne said a business advertising cheaper than reality prices could give them an unfair advantage over competitors.
“There’s no excuse for false or misleading advertising,” she said.
“This investigation and the charges we have filed should send a clear message – when we see prices that we think are misleading, the commission will act so that businesses are held to account.”
