Labour has pledged to "make price gouging illegal" if elected, announcing a series of measures to crack down on companies charging excessive prices for essential goods and services.
The party said it would make it illegal for "big companies with substantial market power" to charge excessive prices for essential goods and services, or to pay unfairly low prices to suppliers.
The crackdown would target the big players in food, power, fuel, transport, telecommunications, banking and insurance.
It would set a "clear legal test" for suspected price gouging. If prices are well above what they would otherwise be in a competitive market and are sustained over time, companies could face penalties.
The Commerce Commission would have the power to investigate price gouging and support consumer and supplier representatives to do the same.
Companies found to be price gouging would have to pay penalties and return back "every dollar of excess profit".
The laws would apply where a company has enough market power that consumers "can't realistically switch", or new competitors struggle to enter the market.
"Right now, a company big enough to dodge competition can charge excessive prices for the basics, like food and fuel, and there's no law against it," Labour leader Chris Hipkins said.
Labour Commerce and Consumer Affairs spokesperson Arena Williams said the policy would not target small businesses.
“This is aimed at a small number of very large companies. It won't touch the 97% of New Zealand businesses that are small, like your local dairy or cafe.
"Rules like these already operate in the United Kingdom, Europe, Canada, and Australia. It's time New Zealanders had the same protection."
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