Misleading or deceptive conduct

If you are told things by a shopkeeper that give you a false impression about goods you are buying, then you have been misled or deceived. For example, if you discover that bags advertised as leather are actually vinyl, or if you buy faulty goods and the shopkeeper incorrectly tells you that you are not legally entitled to a refund, replacement or repair.

False representations

When information given to you about goods and services is not true, then a false claim has been made. For example, if you buy a shirt with a "Made in Italy" label and find it actually came from a factory in Korea.

The word "representations" covers any situation where a trader claims something about their product or services, either verbally or in writing. It can even cover cases where a trader doesn't say something. For example, neglecting to mention that prices exclude GST.

Unfair practices

Unfair practices are selling methods which mislead you. Unfair practices which are illegal under the Fair Trading Act include:

  • Offering prizes or gifts without intending to supply them, or not supplying them as offered.
  • Bait advertising - when a seller advertises particular goods or services at a particular price, and doesn't intend supplying or selling reasonable quantities at that price.
  • Making misleading claims about business activities. For example, claiming you can make $1000 a week selling cosmetics from home, in circumstances where you would have to work about 20 hours a day, 7 days a week to make that sort of money.
  • Pyramid selling schemes (see Scams & Ripoffs ).
  • Demanding or accepting payment without intending to supply the goods or services, or without believing they'll be ready at a specified time, or intending to supply different goods or services.
  • Using physical force, harassment or coercion when supplying goods or services.

Consumer information standards

These standards make it mandatory for information about certain products to be disclosed to consumers. They are made as regulations under the Fair Trading Act and are enforced by the Commerce Commission.

Currently there are four consumer information standards.

Consumer Information Standards (Country of Origin (Clothing and Footwear) Labelling) Regulations 1992.

These require most new clothing sold in New Zealand to be labelled with their country of origin. The label must be in English, permanent and positioned so it can be easily seen by consumers.

Consumer Information Standards (Fibre Content Labelling) Regulations 2000

These require all new textile goods to be labelled with their fibre content. Carpets are covered by the regulations but second-hand goods aren't.

Consumer Information Standards (Care Labelling) Regulations 2000

These set out the words, phrases and symbols which must be used to tell consumers the correct way to wash, dry clean and care for their clothes and fabrics.

Consumer Information Standards (Used Motor Vehicles) Regulations 2008

These require used car dealers to display a "consumer information notice" to all cars available for sale. The regulations specify the information which must be disclosed on the notice.

For more information about the supplier information notice, see Car buyers' rights

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