Submissions Called for on Consumer Protection Laws

2 May 2006
New Zealand consumer protection laws stack up favourably compared with overseas countries but some new tools maybe worth considering according to a discussion paper released by Consumer Affairs Minister Judith Tizard today.

"This review is part of government's commitment to making sure that consumer law is relevant and up to date. We want to ensure that New Zealand consumers are protected and that there is a fair and competitive environment for business".

The discussion paper reviews and compares our Fair Trading and Consumer Guarantees legislation with similar laws in Australia, the United Kingdom, Canada and the United States.

It focuses on how well redress and enforcement tools are working in New Zealand. The review looks at some enforcement tools that are available overseas and considers how these might be adopted to improve the effectiveness of our Fair Trading legislation.

Overseas enforcement tools to be considered for use here include:

• To prohibit unfair terms in consumer contracts;
• Unsafe products could be removed from sale during an investigation and the public warned of the potential danger;
• Cease and desist orders could prevent a trader continuing with alleged misconduct;
  Substantiation notices would place the onus of proof of claims on the trader - not the enforcement agency;
• Banning orders would prevent serious offenders from continuing to supply goods or services, for a set or indefinite period of time, and prevent them from continually misleading or deceiving consumers;
• Court enforceable undertakings could be used if a trader contravenes the terms of a previous settlement with the Commerce Commission;
• Strengthening the Commerce Commission's interview powers would enable it to require a person to answer questions and give evidence. Consideration would need to be given to appropriate immunity provisions.
   

"I strongly encourage consumers and businesses to consider the discussion paper and to make a submission to the Ministry of Consumer Affairs," says Judith Tizard.

Submissions on the discussion paper close on 29 June 2006. Copies of the paper are available below or by contacting the Ministry.

Further Information

The document is called Review of the Redress and Enforcement Provisions of Consumer Protection Law – International Comparison Discussion Paper. It is available below or by contacting the Ministry as follows:

Enforcement Review, Policy Unit
Ministry of Consumer Affairs
PO Box 1473
Wellington
email: enforcement-review@mca.govt.nz
Phone: 04-462 4273

Links

Review of the Redress and Enforcement Provisions of Consumer Protection Law:

• International Comparison Discussion Paper