Reading Bernard Hickey's captivating
live blogging commentary from the Hanover meeting yesterday there was one comment that stood out.
Alfred Batchelor, 84, asks how he’ll get his money back. “Some silly bugger on the telly told me Hanover was as safe as the rock of Gibraltor.”After the initial chuckle, I wondered in my best Alan Shore pose whether this man had a point. Whether there is a case for the prosecution on this one? It's Christmas and I am feeling more Alan and less Denny today, so I will take one for the little guys for a change.

Here is the "silly bugger", Richard Long. (
Not to be confused with Richard Long, the gatekeeper of the Press Gallery booze and still going strong at 69).

Back in 2008, the Advertising Standards Authority ruled against Hanover for the advertisement where Richard Long stated:
"This One Weather Update is brought to you by Hanover, a New Zealand business with the size and strength to withstand any conditions."Hanover appealed and lost. That wording ran from August 19 to November 15 2007. The wording was then changed.
The Commerce Commission
announced on 24th July 2008 that it was investigating whether Hanover Finance had breached the Fair Trading Act by making misleading representations to prospective investors and/or the public generally.
More than a year later I can't find any evidence that they have actually done so. Readers may be able to shed light on what has happened some 17 months on, I would also love to be sent or have You Tubed the old advertisements so pull it all out of archives now folks. If nothing has been done at all relating to the complaint then this is grounds for the Commerce Commission disappearing altogether. Here is a classic case of misrepresentation not about a toaster, but a product in which many people were induced to put their life savings. It's a little more serious with 16,500 investors owed more than half a billion dollars.
So putting this aside for a moment I ask if anyone has looked at Richard Long and his conduct as a celebrity endorser more critically than to treat him as a victim of Hanover? The Fair Trading Act has wider implications than Hanover. Individuals involved in the offending conduct can be prosecuted under the Act. Not to mention any other causes of action that can be thrown at Long.
Richard Long was a paid celebrity endorser, unlike Colin Meads and his failed fronting for Provincial Finance, Long was extra special, he had authority beyond just being a "good Kiwi bloke".
Every night Long appeared as an authoritative newsreader in the homes of New Zealand, putting a million in a collective trance at 6pm relaxing after work or a long day on the couch. A newsreader is meant to portray neutrality. Richard Long personified this. Every night he would front without emotion as he read the auto-cue. No one knew Long's politics or much about him at all. He was the consumate professional.
Hanover's advertisements that Long agreed to do actually cross-pollunated back to his former role with the words:
This One Weather Update....
That is Richard Long used not only his celebrity (as in the case of Meads) but his prior position at TVNZ as a neutral trusted newsreader to flog a product that induced Mr Batchelor and others to put their life savings into the investment.
I ask Mr Long in cross examination - Did you have any money of your own in Hanover? Or was your pay in any way linked to the product?
You see this isn't like Tiger Woods and a razor or Nike shoes. Tiger has to use the razors and wear the Nike shoes as part of the deal. Long to the best of the media's knowledge never had any money tied up in an investment in Hanover.
Richard Long may claim he did not know of Hanover's position when he made the advertisement, yet as an intelligent man of above-average means exercising a professional of care how could he possibly state that any investment other than a government guaranteed bank deposit could "
withstand any conditions"? There is no
reasonable basis for this claim.
Granted the investors should not have relied on this statement either, yet the purpose of advertising is to induce the consumer to buy and New Zealand has legislation protecting the consumer from false claims.
In fronting the campaign and accepting payment for it, Richard Long is culpable as the pointman for inducing the most important part of the puzzle - the investors, into investing in Hanover. Without investors there was no Hanover.
The Alfred Batchelors' of Hanover who relied and were induced based on Richard Long's unique attributes as a frontman, I believe with a bit of Alan Shore style representation have a case for him to answer.
At the very least he should be made to pay back the fee he received for fronting the advertisements that he must have known were false and misleading and resulted in inducing Alfred and many avid newswatchers and fans of Long into investing in Hanover.
That would be a good start.
It may also serve as a timely warning for New Zealand celebrities willing to put their names to all sorts of risky or hopeless products, to earn pocket money thinking that all the liability rests with the other party to their contract.