Legislation designed to strengthen consumer protections and target misleading business practices has been introduced to Parliament.
Economic Growth Minister Nicola Willis and Commerce and Consumer Affairs Minister Cameron Brewer introduced the Fair Trading Amendment Bill, which aims to increase penalties for breaches of the Fair Trading Act and strengthen rules governing pricing and promotional practices.
Willis said too many shoppers were still being caught out by pricing differences at the checkout or by promotions that did not deliver the savings they appeared to promise.
The bill proposes a major increase in penalties, with companies facing fines of up to $5 million, or as much as three times the value of any commercial gain or transaction tied to the breach.
This is a sharp rise from the current maximum penalty of $600,000.
Alongside tougher penalties, the legislation would also introduce a “safe harbour” defence aimed at helping online service providers remove suspected scam content more quickly, as long as they have taken reasonable steps to prevent misuse.
The Bill also proposes changes to simplify the way product safety standards are updated, helping New Zealand stay aligned with international regulations while lowering compliance costs for businesses.
Most breaches of the Fair Trading Act would shift from criminal to civil liability under the bill.
Serious misconduct, including knowingly taking payment without delivering goods or committing major safety breaches, would still be treated as criminal offences.