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New Consumer Protection Powers Introduced to Parliament

Home Insights New Consumer Protection Powers Introduced to Parliament

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Published on: December 17, 2019


As signalled in September, a Fair Trading Amendment Bill was introduced to Parliament today as a result of the Government’s work on unfair commercial practices and the review of consumer credit law.

The Bill:

  • introduces a prohibition against unconscionable conduct in trade;
  • extends the current protections against unfair contract terms in standard form consumer contracts to also apply to business-to-business contracts that form part of trading relationships with a value below $250,000 per year; and
  • strengthens the ability of consumers to require uninvited sellers to leave or not enter their premises, including through the use of ‘Do Not Knock’ stickers.

As discussed in our previous Consumer Law Alert (see here), the changes mark a very significant change to New Zealand's commercial law framework, and will have far-reaching impacts on how businesses negotiate and contract with one another. There will be a further opportunity for affected parties to make submissions through the select committee process early next year. 

If you have any questions about how these proposed changes could affect your business, please contact one of our experts below.

This article is intended only to provide a summary of the subject covered. It does not purport to be comprehensive or to provide legal advice. No person should act in reliance on any statement contained in this publication without first obtaining specific professional advice. If you require any advice or further information on the subject matter of this newsletter, please contact the partner/solicitor in the firm who normally advises you, or alternatively contact one of the partners listed below.

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