Appendix 2: Legislation
The following legislation comes within Vote: Consumer Affairs:
Auctioneers Act 1928
The Auctioneers Act requires all auctioneers to be licensed. Entry to the occupation is dependent upon applicants being able to satisfy a District Court Judge that they are "fit and proper" and financially secure. This is in accordance with the Act's primary objective, to protect consumers from reckless/incompetent auctioneers and financial loss. This Act is enforced by the New Zealand Police and also allows for private or self-enforcement.
Consumer Guarantees Act 1993
The Consumer Guarantees Act covers consumer protection in the post-sale period (after a purchase is made). It creates statutory guarantees that are automatically conferred each time a consumer purchases a good or a service from a trader. The Act also provides clear remedies for consumers if a breach of the guarantee occurs. This Act is self-enforcing.
Credit Contracts and Consumer Finance Act 2003
The Credit Contracts and Consumer Finance Act regulates consumer credit, including home loans, personal loans, credit sales/hire purchase, credit cards, long-term leases and housing buy-back schemes. The Act requires disclosure on key information to the debtor, prohibits unreasonable fees, allows for contracts to be varied in cases of hardship and provides for re-opening of oppressive contracts.
This Act replaces the Credit Contracts Act 1981 and the Hire Purchase Act 1971. These Acts apply to credit contracts and hire purchase agreements entered into before 1 April 2005. It is enforced by the Commerce Commission.
Credit (Repossession) Act 1997
The Credit (Repossession) Act standardises procedures relating to the repossession of goods under a security agreement. It covers the repossession process that a creditor (or agent) must follow for all secured loans and hire purchase agreements over consumer goods. This Act is self-enforcing.
Door to Door Sales Act 1967
The Door to Door Sales Act regulates agreements for the sale of goods and the provision of services on credit, entered into at places other than appropriate trade premises. This Act is self-enforcing.
Fair Trading Act 1986
The Fair Trading Act aims to maximise consumer protection in the pre-sale period (before a purchase is made). It attempts to ensure that all trading activities are based on accurate and honest information. It also allows for bans and recalls of unsafe products and the imposition of mandatory standards if necessary. This Act is enforced by the Commerce Commission.
Under Parts 3 and 4 of the Fair Trading Act 1986, the Minister of Consumer Affairs can recommend mandatory standards for products or services, ban unsafe products or order a compulsory recall of an unsafe product. These measures are generally used only when attempts to have the product amended or withdrawn voluntarily fail.
Layby Sales Act 1971
The Layby Sales Act sets out rules for layby sales - where the goods being bought are not available to the buyer until the purchase price is paid off by instalment. The Act does not apply to layby sales over $7,500 or to a motor vehicle being sold by a licensed dealer. This Act is self-enforcing.
Motor Vehicle Sales Act 2003
The Motor Vehicle Sales Act requires that all motor vehicle traders are registered on the Motor Vehicle Traders Register (including car market operators and vehicle auctioneers). Traders are required to display a supplier information notice, in the form prescribed under the Fair Trading Act, with all used motor vehicles for sale.
The Motor Vehicle Traders Register is administered by the Ministry of Economic Development. Enforcement activity relating to the register is carried out by the Economic Development Ministry's National Enforcement Unit. The supplier information notice is enforced by the Commerce Commission.
Unsolicited Goods and Services Act 1975
The Unsolicited Goods and Services Act provides protection for people who receive unsolicited goods or invoices for unordered goods or services. This Act is self-enforcing. However, parts of this Act provide for criminal penalties.
Weights and Measures Act 1987
The Weights and Measures Act protects New Zealand's system of metric weights and measures, and prescribes their use in the marketplace. It attempts to ensure that goods sold by weight, measure or number are traded fairly and in accordance with internationally recognised principles. This Act is enforced by the Ministry of Consumer Affairs.
Back to Top