Competition and consumer law in New Zealand is designed to ensure healthy competition between businesses and the fair treatment of consumers.
The NEW ZEALAND CONSUMER LAW module informs organisations about their express obligations with regard to consumer law and the practices and policies they should be implementing to ensure compliance in every situation.
New Zealand consumer law is primarily established by;
- The Fair Trading Act 1986 (NZ) (FTA);
- The Commerce Act 1986 (NZ); and
- The Consumer Guarantees Act 1993 (NZ).
The NEW ZEALAND CONSUMER LAW module covers how the laws established by these acts apply to anyone supplying goods or services in trade to consumers. The module also provides instructions and guidance to organisations about processes and procedures they should implement and maintain to ensure compliance with these laws.
The module covers prohibited business activities which are employed to reduce market competition. These “restrictive trade practices” are not permitted and include;
- Cartel conduct;
- Misuse of market power;
- Bid rigging;
- Market sharing; and
- Price fixing.
The primary imperative of the NEW ZEALAND CONSUMER LAW module is to ensure that businesses have a robust and effective compliance framework and program in place that is relevant at all levels of the business. It must incorporate open communication, training, policies and procedures to mitigate risks across the business, including;
- Assessing potential restrictive trade practices;
- Contracting with customers and other third parties;
- Product safety;
- Advertising and marketing;
- Complaints management;
- Pricing; and
- Sales practices.
New Zealand competition and consumer law is regulated by the Commerce Commission New Zealand. The NEW ZEALAND CONSUMER LAW module covers the requirement of businesses to fully co-operate with any lawful investigation or inquiry by the Commerce Commission as well as the advantages of proactively consulting with the Commerce Commission with respect to any proposed conduct that may be deemed “restrictive trade practices”.
The module also covers a significant number of other laws, standards and codes which in varying measures touch on the relationship between businesses and consumers, including those related to;
- The sending of unsolicited commercial electronic messages (known as ‘spam’);
- The handling of personal information;
- Mandatory disclosures of information to consumers; and
- Telemarketing and other forms of unsolicited sales practices.
The module draws on specific pieces of additional legislation which impose obligations on businesses including;
- Consumer Information Standards (Core Labelling) Regulations 2000 (NZ);
- Fair Trading (Infringement Offences) Regulations 2014 (NZ);
- Search and Surveillance Act 2012 (NZ);
- Unsolicited Electronic Messages Act 2007 (NZ);
- Unsolicited Electronic Messages Regulations 2007 (NZ);
- Consumer Information Standards (numerous); and
- Produce Safety Standards (numerous).
The module also covers consequences to organisations for breaches of New Zealand consumer law by individuals and corporations which can include civil and criminal penalties;
- Monetary fines;
- Injunctions;
- Damages; and
- Disqualification.
The NEW ZEALAND CONSUMER LAW module does not advise organisations with regard to “restrictive trade practices” employed by businesses they are in competition with. The module also does not advise consumers as to their rights or procedures to follow in the event that they are not treated fairly by a business.