Consumer Law Reform Bill update

Kaimai_Law_Bethlehem_-_Winter_2012_-_Commercial_eSpeaking.pdf

The Consumer Law Reform Bill 2011 had its first reading in Parliament on 9 February 2012. The Bill repeals a number of ‘outdated’ Acts and introduces a number of changes under the Fair Trading Act 1986. The most notable changes include the introduction of criminal penalties for ‘unsubstantiated claims’ that is where no reasonable grounds exist for making a claim, regulating the sale of extended warranties to consumers, the ability for parties ‘in trade’ to contract out of the Fair Trading Act and the extended jurisdiction of the Disputes Tribunal in terms of claims of misleading or deceptive conduct.

The Consumer Guarantees Act 1993 will also be amended to provide that the statutory guarantees under that Act will apply to goods sold by businesses to consumers via auction, including internet auctions.