International Comparison Discussion Paper

May 2006

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Foreword

Creating an environment where consumers can transact with confidence is the ultimate goal of consumer protection policy. What this means in practice is that consumers should get what they reasonably expect from a purchase and, if not, have access to redress.

Transacting with confidence is not just important to the individual consumer, it is also essential for a thriving, innovative and sustainable economy.

In order to create an environment where consumers can transact with confidence, the government provides information and establishes market rules (including setting standards and having consumer law setting out rights and protections) and provides mechanisms for their enforcement (including access to redress).

The two overarching pieces of legislation setting out consumer rights and protections are the Fair Trading Act 1986 (FTA) and the Consumer Guarantees Act 1993 (CGA).

It is important on a regular basis to assess whether the desired outcomes of our consumer protection laws are being achieved. To better understand how effective the enforcement of the FTA and the CGA are in practice, the Ministry of Consumer Affairs is undertaking a review of the redress and enforcement provisions of these key consumer protection laws.

One way of monitoring whether our consumer protection laws are delivering the best possible outcomes is to compare our laws with those in similar overseas jurisdictions. This approach provides not only a type of benchmarking exercise but also ensures we are aware of current international consumer policy trends.

This discussion paper summarises the redress and enforcement provisions found in consumer protection legislation in other similar jurisdictions overseas that are different from those in the FTA and CGA and considers whether their availability would be beneficial to improving the environment for consumers to transact with confidence.

I invite businesses and consumers to consider the proposals and make submissions to the Ministry of Consumer Affairs on whether you think the proposals will enhance the effectiveness of consumer protection legislation in this country.

Hon Judith Tizard
Minister of Consumer Affairs

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