Internet provider Stuff Fibre has been warned by the Commerce Commission over its unsubstantiated claims that it is "probably New Zealand's fastest internet".
NZ Fibre Communications Limited, which trades as Stuff Fibre, likely breached the Fair Trading Act because it didn't have reasonable grounds for making the claim, the regulator said in a statement on Monday.
Stuff Fibre hadn't done any broadband speed comparisons with competitors and admitted it didn't know if its broadband services were actually faster than its competitors.
The commission took the view that the caveat "probably" was not effective to prevent customers from being misled.
"The internet speed claim is a matter of scientific fact that consumers would expect to be known and verified," commissioner Anna Rawlings says.
"If a trader is prepared to say it is 'probably the fastest', this will suggest to many consumers that they have done their research and are comfortable they are performing at that level.
"In fact, Stuff Fibre had not verified its claim."
In September, heat pump supplier Fujitsu General New Zealand Limited was the first company convicted under the unsubstantiated representations provision of the Fair Trading Act and was fined $310,000.
Stuff Fibre is 51 percent owned by Fairfax Media NZ, publisher of Stuff and newspapers including the Dominion Post and The Press.