The Government will tackle deceptive business practices with the introduction of the Fair Trading Amendment Bill.
Economic Growth Minister Nicola Willis said that the price that Kiwis see on the shelf or in the supermarket aisle should be the price they pay at the checkout.
“We know that New Zealanders are watching every dollar, but too many shoppers are being misled. Whether they’re being charged more than the advertised price or being sold a ‘special’ that isn’t really a saving - that’s not acceptable," she said.
“That’s why we’re lifting penalties for misleading pricing and conduct, so big businesses can’t treat breaking the law as a cost of doing business, instead facing consequences that match the harm caused and the profit gained."
The maximum penalty for breaches of the Fair Trading Act is currently NZD 600,000. Following these changes, companies could be liable for up to three times the value of the commercial gain, the value of the transactions, or NZD five million.
“Most businesses follow the rules. Some don’t, which is where we’re seeing misleading pricing and promotions that short-change shoppers.”
This work followed Consumer NZ’s “Price it Right” petition, which highlighted the widespread prevalence of pricing inaccuracies. The Commerce Commission also estimated pricing errors could be costing New Zealanders tens of millions of dollars a year.
The Bill does three things:
- increases penalties for breaches of the Fair Trading Act.
- introduces a new ‘safe harbour’ legal defence to support the takedown of scam websites.
- streamlines the process for updating product safety standards.
Commerce and Consumer Affairs Minister Cameron Brewer added that Kiwis should have confidence that businesses they buy from treat them fairly. These changes provide strong incentives for businesses to follow the law and increase the consequences for those who don’t.
He said the Bill establishes a new legal defence called a ‘safe harbour’ allowing online service providers to take down suspected scam content quickly, provided they take reasonable precautions.
“Scams are becoming increasingly sophisticated, and this safe harbour defence, developed with industry support, gives providers the confidence to stop them," said Brewer.
“The Bill also addresses long‑standing issues with product safety regulation, allowing us to keep pace with international standards and reducing unnecessary costs for businesses while maintaining safety.
The Bill will shortly be referred to the Select Committee for six months, and businesses and consumers have been encouraged to have their say.
Our message to dodgy traders is simple: follow the law or pay the price.
Willis concluded that these changes bring honest businesses back by making sure competition is based on playing by the rules, not cutting corners.
"When people can trust what they’re buying, and those who cheat face real consequences, it lifts confidence and supports a stronger, more competitive economy."
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