The Fair Trading Act gives the Minister of Consumer Affairs the power to ban unsafe products or order their recall. A trader can also be instructed to inform the public why and how the goods are unsafe, offer to repair or replace the goods, or provide refunds.

Among products banned by the Ministry over the years are certain crossbows, candles with excess lead in the wick and caustic fluids used in water pistols.

The Ministry has only initiated one compulsory recall: in 1989, for some BMX bicycles. But voluntary recalls happen all the time.

Product safety standards

The Act also allows the Minister to set mandatory minimum safety standards for products. Unlike the rest of the Fair Trading Act, these standards do apply to private sales.

So far there are six product safety standards:

Bicycles: This sets out the performance requirements for all new bikes sold in New Zealand. It does not cover secondhand bikes but does include kitset and partially assembled bicycles.

Children's nightclothes: This is designed to protect children from the dangers of wearing flammable, loose-fitting or flowing nightwear around fires or heaters. The law applies to all businesses involved in the manufacture, distribution and sale of children's pyjamas, nightdresses, dressing gowns, infants' sleeping bags and the like. All these products must carry labels explaining the dangers.

Cigarette lighters: This aims to make lighters childproof, by setting standards for lighter design and labelling.

Toys: This covers the sale, exchange and hire of toys for children under three years old and includes "giveaways" such as toys in breakfast cereal packets. The standard says that toys should not be of a size that could choke a child, or have small parts that can be taken off or are easily broken off to create a hazard if swallowed or inhaled.

Cots: Manufacturers and suppliers of cots, including secondhand dealers, must ensure that cots are safe and meet specific safety criteria.

Baby walkers: these must be sold with product information and safety warnings on them. Manufacturers must also ensure that safety features to prevent walkers from tipping over or toppling downstairs are also included.