Fair Trading Act 1986

The Fair Trading Act 1986 is a statute of New Zealand, developed as complementary legislation to the Commerce Act 1986.[1] Its purpose is to encourage competition and to protect consumers/customers from misleading and deceptive conduct and unfair trade practices.[2]

Fair Trading Act 1986
New Zealand Parliament
Royal assent17 December 1986
Status: Current legislation

The Fair Trading Act provides for consumer information standards. Under the Act, the Commerce Commission enforces product safety standards on items such as bicycles and flammability of children's night clothing.

Main rules

The Act protects customers from unfair conduct. Unfair conduct has been classified in the act as the following:

  1. Misleading and deceptive conduct: Generally, in relation to goods, in relation to services and in relation to employment[3]
  2. Unsubstantial representation[4]
  3. False representations[5]
  4. Unfair practices: These include but are not limited to Bait advertising, referral selling and trading stamp schemes. Regulation relation to Trading stamp schemes however has been repealed. [6][7]

Part 2 of the Act also looks at Consumer information. It defines standards and also compliance requirements.

A 2015 amendment increased protection against "unfair contracts".[8]\

- Difference between the Fair Trading Act and the Consumer Guarantees Act (CGA): the FTA covers claims on products and services before they are bought while the CGA covers claims after the product or service has been bought. [9]

See also
  • Fair Go, a New Zealand consumer protection television programme

References
  1. "Consumer Law Review – A Discussion Paper" (PDF). Ministry of Consumer Affairs. June 2010.
  2. "The Fair Trading Act". Commerce Commission.
  3. "Fair Trading Act - Section 9 - Misleading and deceptive conduct generally".
  4. Fair Trading Act - Consumer facts Archived 5 December 2014 at the Wayback Machine. Consumer Affairs. Retrieved on 28 November 2014.
  5. "Fair Trading Act". www.consumer.org.nz. Retrieved on 26 November 2014.
  6. "Fair Trading Act - Section 18 - Trading stamp schemes prohibited".
  7. "Misleading consumers about their rights". Commerence Commission. Retrieved on 26 November 2014.
  8. Pilkington, Troy (21 January 2015). "New regime targets terms in contracts' fine print". stuff.co.nz.
  9. "Fair Trading Act". Consumer NZ. Retrieved 19 September 2018.
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