Complex and outdated labelling regulations cause unnecessary costs and frustrations throughout the economy.
Minister for Regulation David Seymour and Commerce and Consumer Affairs Minister Scott Simpson have announced the Ministry for Regulation will conduct a sector review into product labelling to address this.
“The Ministry for Regulation is in a unique position to take on regulatory costs that make it harder for Kiwis to get affordable goods. Because so many departments impose these regulations, it takes one ministry with a mandate for cutting red tape,” said Seymour.
“New Zealand product labelling requirements are made up of over 30 different codes, standards, and regulations. This leads to high costs for businesses to label their products to comply with New Zealand standards.”
Seymour added that New Zealand’s labelling regime drives up prices and limits wage growth. Exporters face extra compliance costs preparing products for overseas markets, while consumers miss out on global goods because importers face differences in labelling requirements.
Many countries are also shifting to QR codes that link to online labels, easily tailored for different markets and changing needs.
He said that complex labelling rules hit businesses at every level. From small exporters navigating conflicting overseas standards, to pharmacies putting medicines on their shelves. Businesses are forced to print multiple versions of essentially the same label.
“It’s also building products and agricultural sprays; the list goes on. Those costs ultimately get passed on to consumers at checkout.”
The price of groceries is a major concern for Kiwis. Current settings mean products packaged for Australia might not be able to be sold in New Zealand. He said this forces businesses to waste time and money repackaging.
“If we want new international retailers to come here, we need to show them we welcome business investment. The best way to do that is to get out of their way when it comes to annoying compliance that isn’t benefiting anyone,” added Seymour.
“Businesses like Chemist Warehouse have been a game-changer for Kiwis purchasing cheaper pharmaceutical products. However, they’re also tied up by excessive labelling requirements, adding costs to their operations.”
Simpson also said that the Government is working with businesses, industry groups, and consumer advocates to identify pain points and gather input to shape the review’s terms of reference.
“In a time when households are feeling the pinch, every unnecessary cost we can remove from the system is a win for families and businesses.”
The review is expected to be complete by December 2025.
