Fair Trading Act 1986

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Fair Trading Act 1986
Coat of arms of New Zealand.svg
New Zealand Parliament
An Act to prohibit certain conduct and practices in trade, to provide for the disclosure of consumer information relating to the supply of goods and services and to promote product safety and also to repeal the Consumer Information Act 1969 and certain other enactments.
Date of Royal Assent 17 December 1986
Status: Current legislation

The Fair Trading Act 1986 is a statute of New Zealand. Its purpose is to encourage competition and to protect consumers/customers from misleading and deceptive conduct and unfair trade practices.[1]

The Fair Trading Act provides for consumer information standards. Under the Act, the Commerce Commission enforces product safety standards on items such as bicycles and flammability of children's night clothing.

Main rules[edit]

The Act protects customers from unfair conduct. Unfair conduct has been classified in the act as the following:

  1. Misleading and deceptive conduct: Generally, in relation to goods, in relation to services and in relation to employment[2]
  2. Unsubstantial representation[3]
  3. False representations[4]
  4. 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 Regulation relation to Trading stamp schemes however has been repealed. [5][6]

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".[7]

See also[edit]

  • Fair Go, a New Zealand consumer protection television programme


  1. ^ "The Fair Trading Act". Commerce Commission. 
  2. ^ "Fair Trading Act - Section 9 - Misleading and deceptive conduct generally". 
  3. ^ Fair Trading Act - Consumer facts. Consumer Affairs. Retrieved on 28th November 2014.
  4. ^ "Fair Trading Act". www.consumer.org.nz.  Retrieved on 26th November 2014.
  5. ^ "Fair Trading Act - Section 18 - Trading stamp schemes prohibited". 
  6. ^ "Misleading consumers about their rights". Commerence Commission.  Retrieved on 26th November 2014.
  7. ^ Pilkington, Troy (21 January 2015). "New regime targets terms in contracts' fine print". stuff.co.nz. 

External links[edit]