Consumer NZ is welcoming today's announcement that legislation to strengthen consumer laws will be introduced to parliament this year.
But the consumer watchdog is extremely disappointed the Minister of Consumer Affairs John Boscawen has said the bill will not include provisions to protect consumers from unfair contract terms.
"The majority of the changes announced today are long overdue but there are still some big gaps that need to be filled," says Consumer NZ's deputy chief executive David Naulls.
He says Consumer NZ is pleased to see plans to extend the protection of the Consumer Guarantees Act to consumers buying at auction. "Auctions are currently excluded from the CGA, a legal loophole that's provided a boon for the growing number of traders selling online," Naulls says.
The consumer watchdog is also pleased to see plans to prohibit companies from making unsubstantiated claims and to regulate extended warranties.
"Our research has found extended warranties are heavily promoted, frequently with misleading information about the protection they offer. In a lot of cases, you're being sold cover you already have under the Consumer Guarantees Act," Naulls says.
However, Consumer NZ is disappointed an earlier proposal to ban unfair terms in consumer contracts has been dropped. "This was one of the major changes we wanted and it would have delivered a significant improvement in consumer protection."
"Australia recently amended its consumer laws to prohibit unfair terms. Our Ministry of Consumer Affairs, and many of those who submitted on the ministry's discussion paper, recommended we follow suit. The Minister has rejected this and the upshot is that Australian consumers now enjoy much better protection than consumers here," Naulls says.
Consumer NZ will continue to push for regulation to protect Kiwi consumers from unfair terms, Naulls says.
Contact:
David Naulls
Editor
Consumer NZ
04 801 0415
021 837 742
For more information see our Consumer law reform article.
Member Comments
Got a question or comment on this topic? Share your views and experiences with other Consumer members...
To add a comment you need to be a member of consumer.org.nz. Login or Join.
Read what our members have to say close
To save money on essentials and make buying decisions easy, you can't go past Consumer. We're proud to have over 65,000 members all enjoying our independent information online or in Consumer magazine.
Here's what some of them say...
"Just wanted to let you know that I find your site excellent! Easy to find my way around, everything at my fingertips - just a click away.
I only took out a 3 month membership as I wasn't sure but it is actually really easy to use and if I want it on paper I can print the
reports. Thanks again".
Denise Watkinson - Waitakere
"My mother (74) got a renewal letter from her insurance company for her car insurance, wanting $570. After reading
your article on car insurance, I contacted one of the companies you recommended, who quoted her $318 for the same
level of cover. I just wanted to stay thank you very much for your article, as it has saved my mother a substantial amount of money".
Adrian Lane - Kapiti Coast
"I've been a member to the magazine since 1997 and enjoy reading it a lot. I've found lots of helpful information on different issues...
Thank you for being so helpful".
Peter Kovalenko - Porirua
"I have been a member of the Consumer NZ for 20 or more years and have enjoyed much reliable advice.
I turn to their tests before making significant purchases".
Lyndal Print – Auckland
Join Consumer now and make your decisions easy on a huge range of products and services
- Over 500 reports, plus interactive tools and calculators
- Independent advice from NZ's trusted source of information
- Join over 65,000 members who help us get all NZers a fairer deal
from just $28
