Consumer law update 2025

2025 has been another busy year for consumer law in New Zealand. Here we set out some of the key updates from the past 12 months and look at what might be coming in 2026.

Changes this year

Consumer Data Right

The Customer and Product Data Act 2025 became law in March – this legislation establishes a framework for consumers to direct data holders in designated sectors, to share customer data between businesses and accredited third parties. The legislation is aimed at enabling innovation and promoting competition.

The banking sector is the first designated sector – with specific personal internet banking platforms offered by ANZ, ASB, BNZ and Westpac required to meet the new requirements from 1 December (and Kiwibank to follow from 1 June 2026). This is the first step in what the Ministry of Business, Innovation and Employment has called a “phased rollout” of open banking.

See our Insight on the launch of open banking in New Zealand here.

Commerce Commission activity

Last year we set out that the then Minister of Commerce and Consumer Affairs had urged the Commerce Commission (the Commission) to “be a brave, efficient and effective regulator” and to use all the tools in its disposal to enforce the legislation it is responsible for.

This year we have seen significantly increased activity from the Commission in acting against businesses that it considers to be in breach of the Fair Trading Act 1986 (FTA), including successful action against:

• HelloFresh for misleading consumers into reactivating subscriptions. HelloFresh would cold call customers who had cancelled their subscriptions for feedback. HelloFresh would offer those customers discount vouchers for providing the feedback but did not clearly inform them that accepting the voucher would reactivate their subscription. HelloFresh pleaded guilty and was subject to an $845,000 penalty.

• Walond Limited (trading as LookSharp) for engaging in misleading pricing practices and misrepresenting to customers what their rights were under the Consumer Guarantees Act (CGA). This included frequent pricing errors and unlawfully restricting the timeframes that customers could return goods. LookSharp pleaded guilty and was fined just under $300,000.

• 2Degrees for making misleading advertising claims about its Australian business roaming service. 2Degrees represented that business customers could roam without limit and at no extra cost in Australia – but in reality, the service was capped at 90 days per calendar year. 2Degrees pleaded guilty to several breaches of the FTA and was fined $325,000. The telco has taken steps to refund affected customers and clarified the terms of its roaming service.

• Bachcare for unfair terms included in its terms and conditions. The Commission’s claims concerned terms that meant if a guest cancelled a booking made through Bachcare (regardless of how long away the booking was), the guest could lose up to 100% of the amount paid. Bachcare would also keep its service fee even when the accommodation was cancelled by Bachcare or the owner. The action followed multiple complaints after customers cancelled their accommodation due to Cyclones Hale and Gabrielle in 2023. The High Court was satisfied the terms would cause detriment (financial or otherwise) to guests and declared the terms to be unfair. Bachcare has since taken steps to update its terms and conditions.

The Commission has also filed criminal charges against Noel Leeming for multiple alleged breaches of the FTA in relation to the promotion and application of its “Price Promise”. The Commission’s case is premised on its concern that the “Price Promise” had several conditions that were not made obvious to customers. This prosecution will work its way through the District Court as Noel Leeming has said it will be defending the charges.

The Commission has also recently updated its public investigation guidelines so that it will publish the basic details of every investigation it undertakes (including the name of the party under investigation). This is a departure from the approach the Commission has historically taken – the Commission would only publish a party’s name and details of alleged offending if that party was charged.

The above examples demonstrate the increased enforcement action the Commission is taking. It is important that businesses are aware of their regulatory obligations and are compliant – failure to do so could lead to an investigation or action taken by the Commission.

Consumer Guarantees (Right to Repair) Amendment Bill

In our 2024 update, we highlighted that the Consumer Guarantees (Right to Repair) Amendment Bill had passed its first reading in Parliament. The Bill proposed to expand the guarantees given by manufacturers under the CGA. In particular, it would have provided a right for consumers to request a repair for a defective good, rather than just receive a replacement.

The Bill stalled at the Select Committee stage – where the majority of the Committee recommended it should not be passed. The Bill was discharged from Parliament after the member sponsoring it arrived late to the second reading – although it was expected not to pass after New Zealand First announced it would vote against the Bill, calling it “unworkable and costly”.

Potential changes

Fair Trading Act changes

The Government has announced that it will introduce a bill to Parliament in early 2026 to amend the FTA. The changes will increase the maximum fines under “most provisions” of the FTA to the highest of:

• $1 million for individuals, or $5 million for body corporates;

• three times the value of the commercial gain made or loss avoided; or

• the value of the consideration for the transaction(s) that constituted the contravention.

The reforms will introduce a new civil penalties regime for most breaches of the FTA. This will allow the Commission to take action on the “balance of probabilities”, rather than meeting the higher criminal standard of “beyond reasonable doubt”. Serious or deliberate offences, such as demanding payment without intending to supply, serious product safety breaches, or obstructing the Commission in its enforcement role, will remain criminal.

The Commission’s power to issue infringement fees will not be amended and the unfair contract terms regime under the FTA will not be changed.

The proposed changes are not expected to become law until late 2026 and any changes to the penalty regime will not apply to any cases before the Courts.

See our recent Insight for more information on this here.

Anti-scam efforts

The Government is continuing to look at new ways to mitigate the risk of scams.

In July, the Minister of Consumer Affairs, Scott Simpson launched the “Anti-Scam Alliance” (the Alliance). The Alliance is a formal partnership between government agencies, banks, telecommunications providers, digital platforms, and consumer groups focussed on coordinating scam disruption through updating industry codes and educating New Zealanders on how to identify scams. As part of this collaboration, Tech New Zealand, Google, Meta and TikTok are in the process of developing a voluntary digital platform online scams code.

The Government also announced its intention to legislate for a safe harbour defence under the FTA – this defence will allow online platforms, banks, and telcos to quickly disrupt suspected scam content without facing legal repercussions. This change is expected to be included as part of the FTA amendments we’ve discussed above.

Product labelling changes

The Government has expressed concern that New Zealand’s product labelling regime is too complex and has announced a significant review of the regulatory regime. The review will consider how New Zealand’s rules can more consistently reflect good international practice and harmonise with New Zealand’s trading partners.

There is also interest in whether new labelling methods can be adopted – rather than relying on physical labels, other countries are increasingly using digitally enabled solutions (such as the use of QR codes on products). While this would be an interesting and positive development, any implementation would need to ensure it protects the ability of consumers (including the less technologically savvy) to clearly know what is in the product they are purchasing and using.

It is expected that the review will be completed by the end of this year and the findings and recommendations delivered to relevant Ministers.

While it is not part of the product labelling review, the Government has recently consulted on a proposal to trial the use of digital labels for lower risk imported food goods. If the proposal proceeds, a trial will be set up with selected food retailers. Products subject to the trial would need to come from trusted trading partners with food regulatory systems like New Zealand. Participating retailers would still have to provide allergen, ingredient, and nutrition information – but could do so in-store and online via on-shelf QR codes, digital labels, websites and apps.  

See our Insight on the announcement of the product labelling review here.

Election 2026

We will watch with interest to see what consumer law commitments each party makes going into the election – and what changes the resulting government intends to make.

We will continue to monitor any changes in consumer law in 2026. Please get in touch with our team if you have any questions about anything discussed in this article.

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