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Consumer protection laws to be strengthened

Consumers' rights will be strengthened and business compliance simplified under a bill the Government intends introducing to Parliament.

NZPA and NBR staff
Thu, 17 Mar 2011

Consumers' rights will be strengthened and business compliance simplified under a bill the Government intends introducing to Parliament.

Consumer Affairs Minister John Boscawen said the Consumer Law Reform Bill would bring in the most significant changes to consumer laws in more than 20 years.

He said seven existing laws would be replaced by updated and more understandable legislation covering consumer guarantees, fair trading, and the Weights and Measures Act.

"These changes will reduce costs and confusion, and make it easier for consumers and businesses to understand their rights and obligations," he said.

They would also allow consumers to shop with greater confidence and, for businesses, will help to create a level playing field, he said.

Mr Boscawen said the bill would also strengthen the enforcement powers of government agencies, allowing faster and more effective action to remove unsafe products from the market.

It would also give courts new powers to ban individuals who repeatedly breached consumer laws.

Some of the key changes in the bill, which will be introduced later this year, are:

* The Disputes Tribunal jurisdiction will be extended to cover complaints about misleading and deceptive conduct;

* New goods sold through auctions -- including online auction sites -- will be subject to the acceptable quality provisions of the Consumer Guarantees Act;

* A prohibition on making unsubstantiated claims will require traders and retailers to take steps to ensure their claims are valid;

* Rules around direct sales, such as door-to-door or telemarketing sales, will apply to all types of transactions, including cash or credit;

* Auctioneers will have to be registered and will have to meet minimum standards; and

* Carrier services, such as couriers, will be subject to the Consumer Guarantees Act.

NZPA and NBR staff
Thu, 17 Mar 2011
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Consumer protection laws to be strengthened
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