The government's sweeping consumer law reforms are on track to be introduced to Parliament early next year.The reforms will affect nine pieces of legislation, including the Fair Trading Act, Consumer Guarantees Act, and Weights and Measures Act.Proposals
The government’s sweeping consumer law reforms are on track to be introduced to Parliament early next year.
The reforms will affect nine pieces of legislation, including the Fair Trading Act, Consumer Guarantees Act, and Weights and Measures Act.
Proposals include the prohibition of ‘unfair’ terms in consumer contracts, ‘unconscionable’ conduct, and ‘unsubstantiated’ claims, and changes to account for the increasing popularity of online auctions.
Consumer Affairs Minister John Boscawen, speaking at a Disputes Tribunal Referees forum in Wellington today, said decisions on the reforms would take place in December, to allow legislation to be introduced early next year.
He commended Disputes Tribunal head referee Peter Spiller’s recommendation that the tribunal’s jurisdiction be extended to include section 9 of the Fair Trading Act, which prohibits misleading and deceptive conduct.
Only District Court judges can currently rule on Section 9 cases.
Judge Spiller had argued that the Disputes Tribunal's low-fee structure made it more accessible to consumers, particularly in low socio-economic areas.
Mr Boscawen agreed and said he would welcome exploring the proposal further.
The reform package received a mixed initial response from submitters.
Consumer groups strongly support the introduction of ‘unfair’ contract term provisions, as used in Australia. Business and legal submitters were less keen.
Several submitters challenged the wisdom of emulating Australian law.
Likewise, ‘unconscionable conduct’ provisions were supported by consumer group but strongly opposed by other sectors, who challenged whether a problem in this area actually exists.
All sectors strongly supported an extension of the Consumer Guarantees Act to apply to Trade-Me type online auctions.
