Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Younger Consumers More At Risk, Survey Shows

Did you know you do not need to have the original packaging with you when returning faulty goods? The 2020 New Zealand Consumer Survey (NZCS) shows young people aren’t as familiar with the laws designed to protect their basic consumer rights when purchasing as other New Zealanders.

Those aged 18-26 are less likely than the average to be aware of consumer protection laws (91 per cent compared to 94 per cent), and 64 per cent are more likely than the average (54 per cent) to report knowing “nothing or a little bit” about their consumer rights.

Forty-three per cent of respondents to the survey aged 18-26 have never heard of the Credit Contracts and Consumer Finance Act 2003 (CCCFA), which protects consumers when borrowing money or buying on credit, compared to an average of 29 per cent.

Mark Hollingsworth, National Manager, Consumer Protection at the Ministry of Business, Innovation & Employment (MBIE) says the findings show there’s an opportunity to improve young consumers’ knowledge so they can make well-informed purchase decisions and don’t unknowingly lose out if something goes wrong.

“It’s important young people know there are laws protecting them when purchasing products and services, including in credit transactions or when accessing finance,” says Mr Hollingsworth.

Young people have high rates of online purchasing, with nearly all 18-26 year olds (94 per cent) purchasing something online in the last six months (compared to an average of 87 per cent). However, knowledge of their consumer rights when shopping online is low - 73 per cent report knowing nothing or a little bit - and they are also less likely than average to be concerned about the security of their payment and personal information online (55 per cent compared to 64 per cent).

“While buying online can be convenient, resolving problems when they do arise is a little trickier,” says Mr Hollingsworth. “We encourage young consumers to stay up to date with their rights online, including setting themselves up for safer shopping by implementing cyber security measures as recommended by our colleagues at CERT NZ.”

Younger consumers’ reported awareness of consumer support organisations and dispute resolution services is also below average.

Eighty-four percent of 18-26 year olds are aware of at least one organisation that provides consumer support or advice, while 52 per cent are aware of three or more (compared to averages of 95 per cent and 71 per cent respectively).

Sixty-eight percent of 18-26 year olds are aware of at least one dispute resolution service and 14 per cent are aware of three or more (compared to averages of 84 per cent and 39 per cent respectively).

Mark Hollingsworth notes this may explain why young people’s problems are being left unresolved.

“It’s important that young people know their options around seeking advice, and navigating the right pathway when there’s a genuine consumer issue. This will help them to transact more confidently.”

The 2020 NZCS is the third survey in the series which enables reporting on emerging trends, including those focused on young people. Key findings from the surveys can be found here. New Zealanders, including younger New Zealanders, can learn about their rights and how to resolve problems by visiting Consumer Protection website.

Notes to editor:

  • For other notable findings related to young people, see the 2020 survey and infographic here.
  • Useful resources on the CCCFA are available here.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Mercury Cleared To Acquire Trustpower’s Retail Business

The Commerce Commission has granted clearance for Mercury NZ Limited to acquire Trustpower Limited’s retail business. Deputy Chair Sue Begg said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.... More>>



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>