The Fair Trading Act 1986 is a statute of
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, developed as complementary legislation to the
Commerce Act 1986
The Commerce Act 1986 is a statute of New Zealand. It prohibits conduct that restricts competition and purchase of shares or assets where that would lessen competition in a market.
As well as generally governing markets, the Act gives the Comm ...
. Its purpose is to encourage competition and to protect consumers/customers from misleading and deceptive conduct and unfair trade practices.
The Fair Trading Act provides for consumer information standards.
Under the Act, the
Commerce Commission
The Commerce Commission ( mi, Te Komihana Tauhokohoko) is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regul ...
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:
# Misleading and deceptive conduct: Generally, in relation to goods, in relation to services and in relation to employment
# Unsubstantial representation
# False representations
# 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 Regulation relation to Trading stamp schemes however has been repealed.
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".
- 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.
See also
*
Fair Go
''Fair Go'' is a New Zealand consumer affairs television programme hosted by Pippa Wetzell and Hadyn Jones. First aired in 1977, it is New Zealand's second longest-running local programme (after '' Country Calendar''). It is also highest-rate ...
, a New Zealand consumer protection television programme
References
External links
Fair Trading Act 1986 Article about the Fair Trading Act Consumer New Zealand website
Statutes of New Zealand
1986 in New Zealand law
Business in New Zealand
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