In an effort to help your business comply with the Fair Trading Act, the Commission has produced the DVD An Evening with the Fair Trading Act and other compliance resources, to be used as part of your compliance programme.
To order a DVD contact the Commission at contact@comcom.govt.nz or watch the DVD on the Commission's Youtube channel at http://www.youtube.com/commercecommission
Other guidelines cover:
These publications are guidelines only, and reflect the Commerce Commission's view. They are not intended to be definitive, and should not be used instead of legal advice. Only the courts can make an authoritative ruling on breaches of the Fair Trading Act.
Electricity and the Commerce Commission's role
This page gives an overview of the Commerce Commission's role in the electricity industry. It is designed to give consumers an understanding of what we can and can't do under the Fair Trading and Commerce Acts.
Buying goods and services in New Zealand: Know your rights
Anyone buying goods or services in New Zealand is protected by consumer laws. As a consumer, it's important you know your rights.
Misleading consumers about their rights
It is an offence under the Fair Trading Act to mislead a consumer about their contractual or legal rights.
Pro-Forma Invoicing, Inertia Selling and other Unfair Sales Techniques
Billing without the 'buyer' having agreed to purchase the good or service is known as pro-forma invoicing or false billing. Inertia selling is the practice of providing goods or services to people who have not requested them. Businesses must not request nor accept payment for goods or services if they don't intend to supply them. Any claims made that goods or services are needed must be based on fact.
Claiming You're Something You're not
Any claims made to bolster the image of a business or its products or services must be accurate.
Jargon, Exaggerations and Puffery
Any claims made should be in plain language and should be clear and unambiguous.
Special Offers and Competitions
Businesses that, when promoting or selling goods or services, offer gifts or prizes they do not intend to provide, or do not intend to provide as offered, will breach the Fair Trading Act.
Debt Collecting
There will be times when customers do not pay on time for the goods or services provided. When a business, or a collection agency working on its behalf, seeks to recover debts, it must take care to comply with the law.
Fine Print
The overall impression on a potential customer is important. Fine print shouldn't change the main offer in any way, or be used to conceal important information.
Bait Advertising
Businesses which advertise goods or services at a particular price must supply those goods or services at that price for a reasonable or stated period and in reasonable or stated quantities.
Place of Origin Representations
Many customers prefer to buy New Zealand-made products. Whether a product can be called New Zealand made is a question of fact and degree and depends on the extent to which the individual components of the product were actually made in New Zealand.
Health and nutrition claims
Consumers are often unable to verify claims about health and nutrition products. They need to be able to rely on the information provided in order to make an informed decision.
Environmental Claims
Environmental claims are increasingly used as a point of difference in marketing. It is an area in which consumers can easily be misled. You should be able to substantiate any environmental claim you make.
Also see Guidelines for Green Marketing (PDF) and Guidelines on Carbon Claims (PDF).
Online Selling
This fact sheet provides an overview of some of the techniques businesses use when selling goods or services over the internet. It is designed to give both businesses and consumers an understanding of how the Fair Trading Act applies to online selling.
Use of Agents and Telemarketers
Your business is responsible for anything staff or agents say about the product or service. You need to make sure they are not making any misrepresentations.
Add-Ons and Hidden Fees
You must clearly identify the full cost to purchase a product or service, so that consumers can make an informed decision whether to purchase.
Comparative Advertising
If you are comparing your product and price with a competitor make sure you are comparing like with like.
Pyramid Selling and Multi-Level Marketing Claims
Pyramid selling schemes are prohibited by the Fair Trading Act because they are unfair and it is also common that many recruits are misled about the likely financial returns.
Pricing
This fact sheet provides an overview of the types of pricing techniques a business might use when promoting goods or services. It is designed to give both businesses and consumers an understanding of how the Fair Trading Act applies to pricing.
Telecommunications Product Bundling Guidelines
These guidelines are intended to help telecommunications retailers better understand the Commerce Commission's application of the Fair Trading Act in relation to the disclosure of bundled telecommunications products.
What is the Fair Trading Act ...
Prepaid phone card industry guidelines
These guidelines outline the Commission’s view of how the Fair Trading Act applies to advertising of prepaid phone cards. It is designed to give prepaid phone card companies a better understanding of how to comply with the Act.
