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Consumer rights & money

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Protections against misleading or unfair trading

Enforcing the rules against misleading or
unfair trading

What can I do if a trader has engaged in misleading or unfair trading?

Fair Trading Act 1986, ss 37–46; Fair Trading (Infringement Offences) Regulations 2014

You can start by asking the trader to fix the situation. If that doesn’t work, you can:

  • Take the matter to the Disputes Tribunal, for matters up to $30,000 (see the chapter “The Disputes Tribunal”).
  • Ask the Commerce Commission to investigate. The Commerce Commission is the government agency responsible for enforcing the Fair Trading Act. The Commission receives complaints about behaviour that appears to breach the Act and then decides what, action to take, if any. Action the Commission can take includes:
    • warning the trader
    • coming to a settlement with the trader
    • asking the trader to provide a written “enforceable undertaking”. The Commission can go to the courts to have the undertaking enforced if the trader later breaches it.
    • issuing the trader with an infringement notice (similar to a parking ticket) for certain less serious breaches, such as when a door-to-door seller fails to include all the information required by the Act in their sale agreements. Infringement notices for fair trading offences carry a $1,500 fine (“infringement fee”), but the trader doesn’t get a criminal record.
    • bringing a criminal prosecution against the trader. For more serious offences under the Fair Trading Act, such as making a false statement about goods, individual traders can be fined up to $200,000 and companies can be fined up to $600,000. For those less serious offences where the Commerce Commission has the option of an infringement notice (see above), the maximum penalty (if the Commission brings a criminal prosecution) is $10,000 for individual traders and $30,000 for companies.
  • Apply to the High Court for an order to stop the trader breaching the Act (“an injunction”), or for compensation. For applications to the High Court, you’ll usually need help from a lawyer.

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Consumer protection

Where to go for more support

Community Law

www.communitylaw.org.nz

Your local Community Law Centre can provide free initial legal advice and information.

Consumer Protection

www.consumerprotection.govt.nz

Consumer Protection helpline: 0508 426 678 (0508 4 CONSUMER)

Email: cpinfo@mbie.govt.nz

The Consumer Protection website has useful information on a range of consumer topics. Consumer Protection is part of the Ministry of Business, Innovation, and Employment (MBIE).

FinCap

www.fincap.org.nz

Phone: 0800 345 123

FinCap can help you with budgeting information online or on the phone. They may also suggest a local budgeting service to help you with debt and other budgeting issues.

Consumer NZ

www.consumer.org.nz

The Consumer NZ website provides a wide range of information on consumer issues and template letters you can use to write to traders to enforce your rights. You can also order “Do Not Knock” stickers to deter uninvited door to door knockers on their website.

Citizens Advice Bureau

www.cab.org.nz

Phone: 0800 FOR CAB (0800 367 222)

Citizens Advice Bureaux have volunteers trained in consumer law who can provide you with information and advice about consumer problems.

Commerce Commission

www.comcom.govt.nz

Phone: 0800 943 600

Email: contact@comcom.govt.nz

The Commerce Commission enforces the laws against misleading and deceptive conduct by traders (the Fair Trading Act) and the consumer credit legislation (the Credit Contracts and Consumer Finance Act). The Commission provides information on these areas on its website.

Consumer rights in another language

www.comcom.govt.nz/consumers/read-about-your-consumer-rights-and-business-responsibilities-in-another-language

This site by the Commerce Commission has information about typical situations consumers find themselves in, in five different languages.

Product Recalls

www.recalls.govt.nz

This site lets you know which products have been “recalled” due to safety issues or product defects. You can generally return a recalled product to the place where you bought it to be repaired or replaced.

Motor Vehicle Traders Register

www.motortraders.med.govt.nz

Phone: 0508 MOTOR TRADERS (0508 668 678)

Check to see if a motor vehicle trader is registered.

Motor Vehicle Disputes Tribunal

www.justice.govt.nz/Tribunals/motor-vehicle-dealer-disputes

Phone: 0800 268 787

The Motor Vehicle Disputes Tribunal deals with disputes of amounts up to $100,000. It can be more if both parties agree in writing.

Personal Properties Securities Register (PPSR)

www.ppsr.companiesoffice.govt.nz/

Search the PPSR register to see if there is any security interest registered against a vehicle. This can be done for a small fee by registering to check online

Proceedings in the District Courts

The Ministry of Justice website has information about making or responding to a claim in the District Courts. See: www.justice.govt.nz and search “claims to civil court”.

Buying a car privately

YouthLaw has produced a video on buying a car privately.
See: www.youtube.com/watch?v=aK8irFAn1as

New Zealand Police

www.police.govt.nz/stolenwanted/stolen-vehicles

Check to make sure a car that you’re considering buying hasn’t been listed with the police as stolen.

Dispute resolution schemes

There are four dispute resolution schemes for consumers dealing with lenders and other credit providers.

Financial Services Complaints Limited – www.fscl.org.nz

Phone: 0800 347 257

Email: info@fscl.org.nz

Insurance & Financial Services Ombudsman
Phone: 0800 888 202

Email: info@ifso.nz

Banking Ombudsman – www.bankomb.org.nz
Phone:
0800 805 950

Email: help@bankomb.org.nz

Financial Dispute Resolution – www.fdrs.org.nz
Phone:
0508 337 337

Email: enquiries@fdrs.org.nz

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