• Home
• About MED
• Publications
• Annual Report
• Archive
• 2006/2007
• Vote Consumer Affairs

• Publications

• Annual Report

• Archive

• 2007/2008
• 2006/2007
• 2005/2006
• 2004/2005
• 2002/2003
• 2003/2004
• 2001/2002
• 2000/2001
• 1999/2000

Policy Advice, Promotion and Conformance > Consumer Affairs Multi Class Output Appropriation

Output Expense > Policy Advice and Support on Consumer Issues

Description

This Output Expense provides policy advice and information on issues, policies and programmes affecting or potentially affecting the ability of consumers to transact with confidence.

The outputs included in this output expense contributed to the following business environment outcomes: Promoting dynamic and trusted capital markets; and Empowering consumers.

Quantity, Quality, Timeliness and Cost

(Performance standards for outputs other than policy advice are in brackets where applicable.)

Work Programme

All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were discussed with the Minister.

The following outputs were included in this output expense for 2006/07:

Consumer Policy

This output relates to providing policy advice on issues concerning an effective legal and regulatory framework for business/consumer transactions. In 2006/07, this output included the following:

Advising government on emerging consumer issues and international consumer policy developments

• Of particular note, the Ministry provided advice on the contribution of behavioural economics to policy development. It gave support to the trans-Tasman Ministerial Council on Consumer Affairs. It contributed to work on vulnerable consumers and electricity, and on consumers and "fringe lenders".

Progressing changes to the Fair Trading Act 1986, including any proposed changes arising from a review of consumer enforcement and redress law

• Work continued on reviewing the enforcement provisions of the Fair Trading Act 1986 and also on providing for the Commerce Commission to share information obtained under the Act with similar international organisations.

Implementing the recommendations of the review of the operation of the Motor Vehicle Sales Act 2003 (MVSA), related to amending the Act and associated regulations

• The Ministry developed and released discussion papers on amendments to the regulations providing for Supplier Information Notices and to the MVSA in May 2006 and March 2007.

Continuing work towards harmonising trans-Tasman consumer law with Australian government consumer agencies

• This work was progressed through attending meetings of the Ministerial Council on Consumer Affairs and its working groups.

Reviewing the role of government in assisting industry to develop and operate effective industry-led regulatory schemes

• The framework for assessing industry-led regulatory schemes was tested through a number of New Zealand case studies and will be further tested as part of an OECD Committee on Consumer Policy project on best practice approaches to consumer protection and compliance management.

Providing advice on the role of consumer law in promoting a competitive and well-functioning marketplace and innovative firms

• The Ministry provided second-opinion advice on a range of topics during the year.

Projects Not Included in the 2006–2009 Statement of Intent

Water Efficiency Labelling

A discussion paper on a proposed mandatory water efficiency scheme was released in June 2007.

Consumer Research, Information and Capability Building

This output relates to researching key consumer issues, providing information to consumers, community agencies and businesses with respect to their legal rights and obligations, and promoting effective consumer representation. In 2006/07, this output included the following:

Contributing to trans-Tasman work to prevent consumer fraud, including researching New Zealand consumer experience and behaviour in respect of non-investment-type scams

• A Fraud Awareness Month campaign was delivered jointly with the Commerce Commission in March 2007. Monitoring showed that media coverage included two interviews on TV (Close Up), three interviews on network radio stations and a four-part series on Fair Go. The Consumers' Institute provided data showing a 144% increase in the number of page impressions to the Scamwatch website during the campaign in March compared to the previous month. This was 79% higher than the number of page impressions achieved during the 2006 campaign.

Participating in international fora including those that address issues of international deceptive practices targeting New Zealand consumers

• To assist it in developing and delivering the Fraud Awareness Month campaign, the Ministry participated as a member of the Australasian Consumer Fraud Taskforce.

Promoting the value of the representation of consumer interests on decision-making bodies

• The Ministry facilitated two fora for its New Zealand Consumer Representatives Network. In making new appointments to the Network, the Ministry now focuses more strongly on recruiting consumer representatives with strong governance skills. Thirty-five nominations were made for consumer representative positions on boards and committees.

Capability building to enable communities and community organisations to identify and address consumer issues

• The Ministry of Consumer Affairs helped the Citizens Advice Bureaux (CAB) secure $1.3 million from the Digital Strategy Community Fund to build an online information system. In addition to improving the provision of information to consumers, the system will allow policy and operations staff to access information on consumer issues drawn from the estimated 75,000 consumer-related enquiries received by the CAB annually.
• During 2006/07, contacts were formed with community law centres to encourage reporting of consumer issues around debt and motor vehicles.
• The Ministry facilitated access for the Commerce Commission to community groups that assist consumers in South Auckland so that the Commerce Commission can be alerted to non-compliant behaviour by fringe lenders. This has assisted in several investigations by the Commerce Commission of fringe lenders.

Reviewing the effectiveness of consumer policy and legislation through systematic monitoring and evaluation, with a particular focus in 2006/07 on monitoring the Credit Contracts and Consumer Finance Act 2003 (CCCFA)

• Two research reports were produced in 2006/07: Fringe Lenders in New Zealand; and Pacific Consumers' Behaviour and Experience in Credit Markets, with Particular Reference to the "Fringe Lending" Market. The information contained in these reports will contribute to the review of the operation and implementation of the CCCFA.

Funding the Powerswitch comparative information facility for domestic electricity consumers

• The Consumers' Institute was funded to provide the Powerswitch facility. A campaign to promote the facility took place in June 2007.

Motor Vehicle Sales Act 2003

This output involves promotion, education and evaluation of the effectiveness of the MVSA. Particular focus in 2006/07 was placed on ongoing monitoring of the effectiveness of the MVSA and on promotions targeted at raising public awareness of aspects of the MVSA.

• A combined campaign to promote the CCCFA and the MVSA was developed by June 2007 for roll-out in August 2007. The campaign featured a TrueCost checklist, and responds to the findings of the research report Pacific Consumers' Behaviour and Experience in Credit Markets, with Particular Reference to the "Fringe Lending" Market, which indicated that Pacific consumers are reluctant to ask relevant questions when seeking credit to purchase a vehicle.

Major Budget Variances

No material variances occurred between years or within the Supplementary Estimates process.

Policy Advice, Promotion and Conformance > Consumer Affairs Multi Class Output Appropriation

Output Expense > Promotion and Enforcement of Measurement and Product Safety Infrastructure

Description

This output expense provides for the promotion and enforcement of a supportive measurement and product safety infrastructure for businesses and consumers, particularly through the administration of the Weights and Measures Act 1987 and the product safety provisions of the Fair Trading Act 1986.

Quantity, Quality, Timeliness and Cost

(Performance standards are in brackets where applicable.)

The following outputs were included in this output expense for 2006/07:

Measurement and Product Safety

Measurement

The management of New Zealand's trade measurement environment to meet international standards in relation to goods sold by weight, measure or number included the following activities:

Implementing the recommendations made from the review of the Trade Measurement Accreditation Scheme

• In 2006/07, the Ministry continued to work through the implementation of the review by developing draft amendments to relevant weights and measures regulations and redrafting sections of the Accreditation Manuals.

Calibration and verification of standards to ensure traceability

• 231 Verification Reports were issued on accredited private sector organisations' working standards (measures of mass or volume).

Conducting type approval examinations of new types of weighing and measuring instruments to ensure they do not facilitate fraud

• The following approvals were processed: 18 "full" type approvals for new types of weighing and measuring equipment; 26 "overseas-based" type approvals; and 7 variants to approvals. All type approvals issued complied with the Weights and Measures Regulations 1999, relevant International Organisation of Legal Metrology (OIML) Recommendations and the ISO 17025 standard.

Ensuring trader compliance with legislative requirements through effective enforcement

• A total of 1,474 (1,044 weighing, 430 measuring instruments) compliance inspections of trade weighing and measuring instruments were carried out, compared to the targets of 1,000 and 400 respectively.

Participating in the activities of inter-governmental organisations dealing with legal metrology, including the OIML and the Asia-Pacific Legal Metrology Forum (APLMF) to enhance the credibility of the New Zealand measurement system

• The Ministry participated in OIML activities including attendance at: the OIML Conference; the Technical Committee 6 on Pre-packaged Products; and the Committee for Participation Review relating to Mutual Acceptance Arrangements.
• The Ministry participated in APLMF activities including: chairing the Working Group on Goods Packed by Measure; and providing training to ALPMF member economies, e.g. Laos, Cambodia and Papua New Guinea.

Quantity

• Surveillance visits were made to 400 (400) traders, to work proactively with them to promote compliance of weighing and measuring equipment and pre-packaged goods with the Weights and Measures Act 1987.
• MCA participated in the development of 8 (5–8) OIML International Recommendations or Documents on a range of issues through a consultative process with industry.

Quality

Maintaining a type approvals regime that ensures measuring instruments do not facilitate fraud, by complying with ISO 17025 accreditation and OIML recommendations

• The quality target was met for the type approvals accreditation regime to be maintained in accordance with the ISO 17025 standard.

Timeliness

• Timeframes set by the OIML for reply on each circulated draft OIML International Recommendation and Document were met in all cases.

Product Safety

This output relates to providing product safety services, which encompasses:

• building and maintaining national and international product safety networks, e.g. through attendance at the joint Australian/New Zealand Consumer Product Advisory Committee;
• developing and reviewing relevant voluntary and mandatory standards, and product safety policies;
• educating and informing consumers and business about product safety;
• investigating and resolving product safety complaints;
• administering the product safety provisions of the Fair Trading Act 1986; and
• representing the consumer perspective by participating in inter-departmental activities dealing with injury prevention, including the Government Inter-agency Steering Group on New Zealand Injury Prevention Strategy.

In 2006/07, the following product safety services were provided:

Action taken on unsafe products and services

• Voluntary recalls were facilitated on the following products: Solutions Infant Sleepsuit; Playskool Team Talkin' Tool Bench; Segway Personal Transporter; Basecamp Coffee Plunger; The Warehouse Mini Off-road Bike; Polly Pocket Magnetic Play Sets; Hundreds & Thousands Girls' Pink Top; Madd Kidz Drink Bottle; Mini Off-road Motorbike; Message In A Bottle Novelty Gift; Huffy Fashion Days Bicycle; Deep Blue The Flower Inflatable Flotation Device; Laugh and Learn Learning Bunny; Binoculars from Kid's Expedition Pack; Thomas and Friends Wooden Railway Products; HUD Bicycle Helmet; and Kathmandu Baby Carrier v4.
• A new Unsafe Goods Notice was issued for hot-water bottles made of PVC and rubber.

Development work on Voluntary and Mandatory Standards

• The Ministry participated in the development and review of Standards in the following Standards Committees: Ladders; Children's Furniture – Highchairs; Household Cots; Pedal Bicycles; Prams and Strollers; and Safety of Children's Toys.
• The Ministry is currently developing Mandatory Standards for hot-water bottles and dummies.

Quantity

• Surveillance visits were made to 337 (300) traders/suppliers to check product safety.
• 141 (80–100) consumer complaints were responded to during 2006/07, across a broad range of products and issues.

Quality

All investigations of product safety complaints were carried out in accordance with the Measurement and Product Safety Service Complaints and Procedures Manual and were reviewed by a team leader/manager audit.

Timeliness

95% (95%) of complaints were acknowledged within 7 (7) working days of receipt of notification.

Major Budget Variances

No material variances occurred between years or within the Supplementary Estimates process.