The Fair Trading Act 1986 is a statute of New Zealand, developed as complementary legislation to the Commerce Act 1986. Its purpose is to encourage competition and to protect consumers/customers from misleading and deceptive conduct and unfair trade practices.

The Fair Trading Act provides for consumer information standards. Under the Act, the Commerce Commission enforces product safety standards on items such as bicycles and flammability of children's night clothing.

Main rules

The Act protects customers from unfair conduct. Unfair conduct has been classified in the act as the following: Misleading and deceptive conduct: Generally, in relation to goods, in relation to services and in relation to employment Unsubstantial representationFair Trading Act – Consumer facts . Consumer Affairs. Retrieved on 28 November 2014. False representations Retrieved on 26 November 2014. Unfair practices: These include but are not limited to Bait advertising, referral selling and trading stamp schemes. Regulation relation to Trading stamp schemes however has been repealed. Retrieved on 26 November 2014.

Part 2 of the Act also looks at Consumer information. It defines standards and also compliance requirements.

A 2015 amendment increased protection against "unfair contracts".

- Difference between the Fair Trading Act and the Consumer Guarantees Act (CGA): the FTA covers claims on products and services before they are bought while the CGA covers claims after the product or service has been bought.

Amendments On 11 September 2024, Parliament passed a private member's bill which amended the Fair Trading Act 1986 to ensure that gift cards have a minimum expiry date of three years from their initial purchase. The bill was supported by all parties except ACT.

Cases BONZ Group (Pty) Ltd v Cooke (1994) Harvey Corporation Ltd v Barker (2002) Hay v Chalmers (1991) Mills v United Building Soc (1988)

See also Consumer Guarantees Act 1993 Fair Go, a New Zealand consumer protection television programme

References

External links Fair Trading Act 1986 Article about the Fair Trading Act, Consumer New Zealand website