Good news for consumers

Consumer Affairs Minister Craig Foss says changes to consumer law coming into effect today will strengthen consumer rights across all types of transactions.

“Key changes under the Consumer Law Reform Bill swing into action today. Consumers will have the same rights when purchasing goods and services regardless of whether they buy online, in a store, by auction, over the phone, at home or anywhere else,” Mr Foss says.

“The law was lagging behind developments in technology and new ways of doing business. These changes represent best practice in regulatory reform, which will make it easier for business to comply.”

Changes coming into effect today include:

Fair Trading Act:

• More information must be provided on the protections offered under an extended warranty and the consumer will have the right to cancel it within five working days.
• Businesses must identify themselves as traders when they sell online. 
• A five working day cooling-off period will apply to uninvited direct sales, including door-to-door and telephone sales.
• Traders will have to be able to substantiate any claims they make as opposed to the Commerce Commission having to test the claim.

Consumer Guarantees Act:

• The Consumer Guarantees Act will apply when consumers buy goods or services from a business by competitive tender or auction, including online.
• If a consumer has arranged for a trader to deliver goods, the trader is responsible for ensuring the goods arrive in good condition and on time.

“The Government is also reducing the number of laws by consolidating legislation.  The strengthened Fair Trading Act now incorporates provisions of the Door to Door Sales Act, the Unsolicited Goods and Services Act and the Layby Sales Act."   

More information on the changes can be found at: www.consumeraffairs.govt.nz/legislation-policy/changes-to-consumer-laws