Fair Trading Amendment Bill introduced

Published: 19 December 2019

The Government has introduced a Fair Trading Amendment Bill to Parliament. The Bill provides new protections for businesses and consumers against unfair commercial practices.

The Bill:

  • introduces a prohibition against unconscionable conduct
  • extends the current protections against unfair contract terms in standard form consumer contracts to also apply to business-to-business trading relationships with a value below $250,000 per year
  • strengthens consumers’ ability to require uninvited sellers to leave or not enter their premises, including through the use of ‘Do Not Knock’ stickers.

Unfair commercial practices can include:

  • unfair contract terms – such as terms which unduly shift risk from one party to another, make it difficult for one party to terminate a contract, allow one party to unilaterally vary the terms of a contract, or are otherwise very one-sided.
  • unfair conduct outside of the terms of a contract itself (including pressure tactics to induce someone to enter into a contract, deceptive conduct or enforcing a contract in a harsh way).

The Bill will have its first reading early in early 2020.

Read the media release on the Beehive website.(external link)

Find out more about unfair commercial practices.

MBIE media contacts

Phone: 027 442 2141
Email: media@mbie.govt.nz