list of contributors - GALA

3. Title Credit Card Companies Prosecuted
Topic: Misleading and deceptive conduct
Where: New Zealand
When: December 2004 onwards
What Happened: The Commerce Commission has filed criminal proceedings against five
banks, two credit card companies and one financial services company
following an industry-wide investigation into the disclosure of international
currency conversion fees.
The Commission was concerned after several banks and credit card
companies in New Zealand were charging conversion fees on overseas
currency transactions without disclosing these to cardholders. For overseas
purchases, a credit card statement would typically set out the foreign
purchase price on a transaction alongside the New Zealand dollar amount
for payment.
"The Commission alleges that the fact these statements represent to cardholders that
overseas purchases made on their credit/debit cards are converted into New Zealand
dollars at a prevailing exchange rate is likely to be misleading because the exchange
rate includes embedded and undisclosed conversion fees. In some cases the
conversion fees could add up to 2.5% on the New Zealand dollar cost of the overseas
currency transaction for cardholders".
The Commission stated that it is vital that all representations made to
customers are accurate, including telling cardholders whether or not the
exchange rate in their credit card statement included fees.
Comments: Although the individual sums may be small, the overall amount involved
may prove more significant. It will be interesting to see what, if any, refunds
are paid to the individual cardholders concerned.
4. Title Patenting Methods of Medical Treatments
Topic: Patents
Where: New Zealand
When: June 2004
What Happened: Pfizer appealed to the Court of Appeal when the Assistant Commissioner of
Patents found that Pfizers two patent applications in 1997 and 1998 relating
to methods of treatment of psychotic disorders were "not allowable on policy
(moral) grounds (Section 17(1))" under the Patents Act 1953.
It was contended that the Court of Appeal should overrule its earlier decision
in Wellcome Foundation Limited vs. Commissioner of Patents (1983) NZLR385
that methods of treating disease or illness in human beings were not
patentable. Pfizer argued that a series of changes to the Patents Act and dicta
in another Court of Appeal decision allowing patents for Swiss Forms
removed the reasons for the ban given in the Wellcome case.
The Court of Appeal dismissed Pfizer's appeal stating that the decision in the
Wellcome case that a method of medical treatment of humans is not
patentable continues to remain the law in New Zealand. The scope of the
1994 amendments to the Patents Act did not extend to change the position
and any reform of this area of the law should be undertaken through the
parliamentary process. The complexity of the law in this area and the policy
choices required were matters best left to legislative reform.
Comments: A new Patents Bill will be introduced into Parliament in early-mid 2005