Photo Source: Nataliya Vaitkevich
A recent survey has uncovered a disturbing trend in New Zealand: 84% of consumers have unknowingly bought from businesses operating under the .co.nz domain, despite those companies being owned overseas.
This growing phenomenon is fuelling concerns about consumer trust and its potential impact on the local economy.
According to Jamie Farmer, Managing Director of Buy Kiwi, this practice exploits New Zealand’s open domain registration system and undermines the country’s digital identity.
“If every Kiwi household diverted just $50 per week from overseas companies to New Zealand-owned businesses, it would inject over $5 billion annually back into our economy,” Farmer emphasises.
The Problem with .co.nz Domains
While Australia’s .com.au domains are tightly controlled, requiring proof of local business presence, New Zealand’s .co.nz system remains far more permissive. The gap has given overseas companies the opportunity to disguise themselves as New Zealand entities, a trend that’s beginning to worry local shoppers and experts alike.
Farmer highlights the urgency of the issue, saying,
“We don’t let just anyone enter our country or buy land without thorough checks. Yet, we allow global entities to secure .co.nz domains instantly. Why would these businesses want a .co.nz domain if not to mislead consumers into believing they’re associated with New Zealand?”
What Consumers Think
A recent survey reveals strong consumer backing for change, with 85% of New Zealanders advocating for .co.nz domains to be reserved for local businesses.
Additionally, 98% of respondents indicated a clear preference for supporting NZ-owned companies when products and prices are on par, highlighting growing dissatisfaction with the status quo.
The Economic Stakes
Farmer warns that unchecked, the practice continues to drain billions from the New Zealand economy annually. Redirecting just a small portion of spending to locally owned businesses could have transformative effects.
Farmer adds that buying from New Zealand-owned entities provides additional benefits during peak shopping periods like Christmas.
“Shopping locally ensures coverage under the Consumer Guarantees Act, better delivery reliability, and access to local customer support. These are significant advantages during the busy holiday season.”
A Call for Change
A petition has been launched in response to these findings, urging the government to restrict .co.nz domains to New Zealand-owned entities and individuals. Advocates argue that digital assets like domain names should be treated as strategic resources, critical to national economic security and identity.
Farmer reinforces this perspective, stating, “Our digital assets are valuable and must be protected to enhance their worth over time.”
Supporting Local Through Buy Kiwi
Buy Kiwi, an online marketplace launched in 2023, offers a solution for consumers seeking to support verified New Zealand-owned businesses. The platform, featuring over 50,000 products and thousands of locally owned companies, ensures that all listed entities meet an 80% Kiwi ownership requirement.
“Shoppers using Buy Kiwi can be confident their money stays within New Zealand, helping to support local communities and businesses,” says Farmer.
Securing New Zealand’s Digital Identity
The holiday shopping season has heightened the urgency for reforming New Zealand’s .co.nz domain system. New Zealanders are encouraged to support the petition for tighter regulations and prioritise local companies in their holiday purchases.