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Law

 

Paddy has taken over as the manager of True Kiwi Sports Limited (Kiwi) a large Auckland sportswear company with retail stores across the city and soon discovers that he may have a legal problem. In 2015, before Paddy took over, Kiwi made large sales of sports gear taking advantage of the interest in cricket stimulated by the ICC Cricket World Cup (CWC). Kiwi was not an official sponsor of the CWC but instituted a significant marketing and sales campaign to promote itself during this period. However Kiwi may have infringed the Major Events Management Act 2007 (MEMA) during this time.

 

Paddy does know that the CWC was declared a major event under MEMA. He also understands that this restricted New Zealand businesses in their marketing while the CWC was played. However Paddy does not know much more than that.

 

During the CWC, Kiwi had four marketing activities. Kiwi:

 

  • Painted a large picture of a cricket bat and ball on one outside wall of their store in Queen Street and on another outside wall painted the words “Supporting the spirit of the Cricket World Cup.”

 

  • Bought tickets for 100 of its employees to attend one of the games at Eden Park (Auckland’s largest sports stadium). The employees dressed in their work uniforms that featured the company brand and gave away gifts to the crowd.

 

  • Took out advertising in the New Zealand Herald newspaper. The advertising consisted of the Herald’s news report on each game with a line at the bottom reading “brought to you by True Kiwi Sports.”

 

  • Continued to sell product from their other shop which is located very near Eden Park during the CWC.

 

Paddy would like you to consider these situations and advise him, briefly, on why an Act such as MEMA was passed, outline its most significant provisions from Kiwi’s point of view, and whether Kiwi may have infringed the Act in each of the four marketing activities.

 

Paddy is also thinking of a new marketing campaign for the Olympic Games in Rio de Janeiro. Kiwi is not an Olympic sponsor but Paddy plans to use the words “Rio Games” and “Rio 2016” instead of “Olympics”. Paddy wonders if this will infringe MEMA?

 

 

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