Legislation aimed at strengthening consumer protections and cracking down on misleading business practices has been introduced to Parliament.
The Fair Trading Amendment Bill, put forward by Economic Growth Minister Nicola Willis and Commerce and Consumer Affairs Minister Cameron Brewer, seeks to lift penalties for breaches of the Fair Trading Act and tighten rules around pricing and promotions.
"It's very simple — the price Kiwis see on the shelf or in the supermarket aisle should be the price they pay at the checkout," Willis said.
She said too many consumers were still being misled — either through pricing discrepancies at the till or promotions that did not reflect genuine savings.
The Bill proposes a significant increase in penalties, with companies facing fines of up to $5 million, or three times the value of any commercial gain or transaction linked to the breach — up from the current $600,000 maximum.
"These changes mean businesses can't treat breaking the law as just a cost of doing business," Willis said.
The changes mean companies with misleading advertising facing fines of up to $5 million. (Source: 1News)
In addition to tougher penalties, the legislation introduces a "safe harbour" defence allowing online service providers to more quickly remove suspected scam content, provided they take reasonable precautions.
Brewer said this would help combat increasingly sophisticated scams.
"It gives providers the confidence to act quickly to protect New Zealanders," he said.
The Bill also included changes to streamline how product safety standards were updated, helping New Zealand keep pace with international rules while reducing compliance costs.
Most breaches under the Fair Trading Act would move from criminal to civil liability, although serious misconduct — such as deliberately taking payment without supplying goods or major safety breaches — would remain criminal offences.
The Bill will now head to select committee for a six month public submission process.
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