Currently, New Zealand’s consumer legislation consists of seven principal statutes. The Ministry of Consumer Affairs considers this framework is outdated and overly prescriptive and could better reflect the position in Australia. With a view for reform, the Ministry released a discussion paper in June 2010, and yesterday the Minister of Consumer Affairs John Boscawen announced that a Consumer Law Reform Bill will be introduced to Parliament later this year. Amongst other things, the Bill may:
- repeal the Auctioneers Act, and make all goods sold via online auction subject to the Consumer Guarantees Act;
- require auctioneers to be registered and meet a number of minimum standards (with an exemption for internet auction providers except those that hold money with respect to auctioned goods);
- add a general prohibition on unsubstantiated claims as a new restricted trade practice in the Fair Trading Act;
- amend the enforcement provisions of the Fair Trading Act and extend the jurisdiction of the disputes tribunal to cover complaints about misleading and deceptive conduct.
These changes could have significant implications for businesses that sell goods by auction and/or market or advertise goods or services in any way. That said, the extent of the changes remains to be seen and we will keep readers informed of developments.
For further information visit the Ministry of Consumer Affairs.