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Consumer Law Reform Bill passes third reading

Consumer Law Reform Bill passes third reading

A Bill that will strengthen consumer rights, simplify business compliance and ensure consumer protections are clear and accessible has passed its third reading in Parliament today says Consumer Affairs Minister Craig Foss.

“The Consumer Law Reform Bill represents the most significant change to New Zealand’s consumer law in more than twenty years.

“Improving our regulatory framework will empower consumers to make informed purchasing decisions and support good business practices. These changes will drive competition, innovation and growth in our economy,” says Mr Foss.

Some of the key changes for business and consumers include:
· Protection under the Consumer Guarantees Act will include online business and auction sites such as Trade Me

· Traders will be liable if goods don’t arrive on time, or are damaged

· A five working day cooling off period will apply to uninvited direct door-to-door and telephone sales.

· New disclosure rules affecting extended warranties

· A new provision will require traders to be able to substantiate any claims they make as opposed to the Commerce Commission having to test the claim.

“The updated laws also align more closely with Australian consumer law. This is a significant step in further progressing the government’s Single Economic Market agenda,” says Mr Foss.

More information on the Consumer Law Reform and the changes taking effect can be found at www.consumeraffairs.govt.nz/legislation-policy/changes-to-consumer-laws

ends

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