Bill passes third reading
Legislation the government says will strengthen consumer rights, simplify business compliance and ensure consumer protections are clear and accessible has passed its third reading in parliament. “The Consumer Law Reform [CLR] Bill represents the most significant change to consumer law in more than 20 years,” says Consumer Affairs Minister Craig Foss. “Improving our regulatory framework will empower consumers to make informed decisions and support good business practices. These changes will drive competition, innovation and growth.” Some of the key changes for business and consumers include protection under the Consumer Guarantees Act to include transactions made through online business and auction sites – such as Trade Me – and physical auctions, such as Turners’ and Manheim’s. This means that the legislation’s obligations on sellers – such as the guarantee of acceptable quality – will apply to all the sale of motor vehicles by registered dealers to members of the public. Traders will be liable if goods don’t arrive on time or are damaged, a five-working day cooling-off period will apply to uninvited direct door-to-door and phone sales, and new disclosure rules will affect extended warranties. A new provision will require traders to substantiate any claims as opposed to the Commerce Commission having to test them. “The updated laws also align more closely with Australian consumer law,” says Foss. “This is a significant step in further progressing the government’s single economic market agenda.” More information on the reform and changes taking effect can be found online at: www.consumeraffairs.govt.nz/legislation-policy/changes-to-consumer-laws
