Your obligations as a business
As a business, there are rules in the Fair Trading Act that apply to all aspects of promoting and selling goods and services – from advertising and pricing to sales techniques.
Complying with the Consumer Guarantees Act
You must meet minimum guarantees for the products and services you sell to consumers. These include that goods are of an acceptable quality and that repair facilities, refunds or replacements will be available for a reasonable time if goods are faulty or services are substandard.
Read more about your Consumer Guarantees Act obligations on the Consumer Protection websiteopen_in_new.
Misleading your customers is illegal
Consumers must be able to rely on the information traders provide when they are buying goods and services. Your business must not mislead consumers about price, quality, features, deliverables or any discounts – everything must be accurate and clearly described.
The Fair Trading Act makes it illegal for anyone in trade to mislead consumers, give false information, or make misrepresentations. It also applies to advertising in all forms such as online, print, TV, social media – and in all dealings with consumers.
Providing accurate and clear information
Whenever you promote or sell your goods and services you must use accurate and clear information. This is regardless of whether it is said verbally or in writing.
It is the overall impression given by pictures, advertisements, promotional material, media clips, radio or a sales pitch. It is not only about what information you are given, it includes impressions given when important information is left out. Be accurate and reliable in what you say to customers and potential customers.
More in this section
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What is being 'in trade'?
Consumers have certain rights when buying goods and services from someone who is ‘in trade’, so it is important to know when you are in trade and to meet your buyers' expectations.Read more -
Unfair contract terms
If you're a business that deals with customers and you use standard form contracts, you need to make sure your terms are fair.Read more -
Contracting out of the Fair Trading Act
As a trader, you cannot contract out of your obligations to consumers under the Fair Trading Act.Read more -
Product safety standards
To help prevent consumers from getting injured by using unsafe products, there are safety standards in place for some products you may sell.Read more -
Product stewardship schemes
When manufacturers, importers, distributors and retailers of a product share responsibility for reducing the environmental impact of their product it is referred to as product stewardship.Read more -
Consumer information standards
To help consumers make informed decisions when buying and caring for goods, there are information standards in place requiring suppliers to disclose information.Read more -
Industry specific guidance
To increase understanding of competition, consumer and credit laws the Commission has a range of industry specific guidance for businesses.Read more -
Unconscionable conduct
There are rules in the Fair Trading Act that apply to a range of business conduct – from advertising and pricing to sales techniques, as well as contracts between businesses and between businesses and consumers. Those rules include a prohibition against unconscionable conduct.Read more -
Consumer Remediation Guidance for Businesses
Restoring balance and maintaining relationships with consumers.Read more