Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government Targets Pyramid Schemes

Media Statement

Government Targets Pyramid Schemes

Consumer Affairs Minister Jim Anderton promised today that pyramid scheme promoters who breach the Fair Trading Act will face higher fines and a Commerce Commission with stronger powers.

The Government today announced new legislation targeted at pyramid scheme promoters.

"The Labour/Alliance Coalition Government will increase penalties for offences related to pyramid selling schemes to $200,000," said Jim Anderton.

"There will be a new 'commercial gain' penalty for pyramid scheme operators that will give the Courts the ability to impose even higher penalties to effectively cancel out pyramid scheme profits.

"The Labour/Alliance Coalition Government is taking tough action to deter people from misleading consumers about the money they can make from pyramid schemes. In the past the maximum penalties were so low that some promoters saw them as simply a cost of doing business.

"In another strong message we are sending to pyramid scheme sellers we will broaden the Commerce Commission's search powers in line with the powers already in other legislation such as the Commerce Act.

"The Commission will be able to issue a notice requiring witnesses to release certain documents or information to assist with the Commission's investigation," said Jim Anderton.

Penalties under the Act for a range of other offences will be doubled to a maximum of $60,000 for individuals and $200,000 for companies to allow the courts to impose more meaningful penalties and give greater deterrence against offending.

These pyramid scheme disincentives are part of a range of measures implemented by the Labour/Alliance Coalition Government to protect consumers.

Other changes include: a total overhaul of motor vehicle dealer law; changes to credit law; a Consumer Protection Bill (to be introduced to Parliament this month); stronger protections for consumers shopping on the internet; and changing the time in which claims under the Fair Trading Act can be lodged from three years after purchase to three years after faults are found.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>

 

Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>

ALSO:

Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>

ALSO:

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels