Phase Two: Organisational Review: Final Report

22 August 2003

Previous Page / Table of Contents / Next Page

Appendix Four: The Ministry's Existing Core Functions

• Policy Unit
• Consumer Information Service (CIS)
• Trade Measurement
• Consumer Safety
• Energy Safety

The Ministry currently operates in four sections covering the five functions (Trade Measurement and Consumer Safety are combined in the Trading Standards Service) described below.

Policy Unit

The Policy Unit carries out a range of policy functions and administers a body of consumer law, including:

• Consumer Guarantees Act 1993
• Credit (Repossession) Act 1987
• Fair Trading Act 1986
• Hire Purchase Act 1981
• Lay-by Sales Act 1971
• Unsolicited Goods and Services Act 1975
• Auctioneers Act 1928.

It also monitors industry self-regulatory schemes (the Insurance and Savings Ombudsman scheme, the Banking Ombudsman scheme, the Electricity Complaints Commissioner) and direct-selling codes of practice.

The Policy Unit is involved with a number of initiatives both domestically and internationally to reduce consumer detriment, and boost consumer confidence, in cross-border transactions. It also advises government on matters that affect consumer transactions in the marketplace including:

• examining how laws and practices affect consumers
• promoting good business practice for consumer transactions
• providing a consumer-policy perspective on policy proposals developed in other government agencies
• developing consumer information standards under the Fair Trading Act and
• recommending legislative changes in response to market failures that impact on consumer transactions.

Consumer Information Service (CIS)

The Ministry produces information on consumers' and suppliers' rights and responsibilities under the consumer law administered and enforced by the Ministry.

There is also direct contact with community agencies and the Ministry's target consumers. CIS functions include:

• providing written information on consumer law for consumers and suppliers
• providing information directly to low-income, Māori, and Pacific consumers
• providing support in the form of training in consumer law and/or information resources for community agencies
• informing policy development processes and interventions through its understanding of consumer behaviour, the problems consumers face in the marketplace, and the communication preferences of the Ministry's target groups
• facilitating the appointment of appropriate people to represent consumer perspectives and interests on statutory boards, advisory bodies, departmental working parties and committees.

Trade Measurement

The Ministry administers and enforces the Weights and Measures Act 1987 and the Weights and Measures Regulations 1999. It does this by:

• ensuring that the instruments used for weighing and measuring are accurate
• informing consumers and suppliers about the requirements of the legislation
• achieving compliance with the legislation through investigation, education, and enforcement as appropriate
• providing advice to government on national and international legal metrology issues
• networking with interested national and international organisations.

Consumer Safety

The Ministry carries out a number of product safety functions, including:

• developing consumer information standards and product safety standards under the Fair Trading Act 1986
• advising the Minister of Consumer Affairs on the Minister's powers under the Fair Trading Act 1986 to recall or ban unsafe products
• Ensuring harmonisation / consistency between Australia and New Zealand in respect of CER and the TTMRA in relation to consumer products
• investigating unsafe products, and working with companies to improve product safety
• helping companies to recall unsafe products
• supporting the development of self-regulatory measures such as voluntary standards
• educating consumers and suppliers in identifying safe products and using them safely.

Energy Safety

(Noted here but not included in the Review)

The ESS administers parts of the Electricity Act 1992, the Gas Act 1992, the Plumbers, Gasfitters and Drainlayers Act 1976 and the Ministry of Energy (Abolition) Act 1989. The ESS works to ensure:

• electricity and gas are produced, distributed and used safely
• electrical and gas equipment, installations and appliances are safe for consumers and the public
• energy measurement is accurate and fair
• petroleum fuels, electricity and gas are fit for their purpose

It does this by promoting effective practices, and ensuring compliance and conformity with those practices.

Previous Page / Table of Contents / Next Page