Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.



BDFL
49198 posts

Uber Geek
+1 received by user: 4173

Administrator
Trusted
Geekzone
Subscriber

Topic # 138089 19-Dec-2013 15:27 Send private message

Just received:


Consumer law modernised and extended

The Commerce Commission says it’s ready to enforce the changes enacted by the passage into law this week of the Fair Trading Amendment Act 2013, and urges businesses to know the new ground rules and ensure they act within the law.

Commerce Commission Chairman Dr Mark Berry says the changes are a significant modernisation and urges businesses to act now to ensure they comply.

“This extensive revamping of the Fair Trading Act has been a long time coming but should bear fruit well into the future.”

“There are some major changes in the Bill that traders and consumers need to understand because they have consequences for both buyers and sellers. The sanctions for breaching the Act are now more severe, and the Commission has enhanced powers to investigate and enforce the Act. The stakes are higher for traders now that this Act has passed,” said Dr Berry.

While some new provisions, such as compulsory interview powers, product safety powers and management banning orders come into effect immediately, most will be implemented in six months. Laws prohibiting unfair contract terms will come into force in 15 months.

Included in new provisions that will come into effect in six months are rules on i) substantiation, where it will be an offence for traders to make unsubstantiated representations without reasonable grounds; ii) online selling, ensuring traders who sell over the internet make it clear they are traders, and extending consumers rights under the Consumer Guarantees Act to include sales by auction or tender; iii) extended warranties, where disclosure is required of the consumer’s rights under the Consumer Guarantees Act and a comparison of these with the benefits of the extended warranty being offered; iv) increased fines.

“The ground rules are now clear,” said Dr Berry. “Don’t claim your product can do something unless you can back it up with fact.”

Dr Berry also said an increase in financial penalties, management banning orders, and infringement notices are significant developments that make it especially important that businesses understand their new obligations.

“Penalties for misleading and deceptive conduct, false representations, unfair practices and product safety breaches have increased from $60,000 to $200,000 for individuals and from $200,000 to $600,000 for businesses. Individuals who repeatedly break the law will also face banning orders, which can see them banned from trading for up to ten years. The Commission will also be able to issue infringement notices for more straight forward breaches.”

Dr Berry says that educating market participants about the changes is critical to their success. “We intend to work closely with businesses to provide guidance, ensure they understand their obligations under the new law and help them comply. Together with other agencies, we will also provide consumers with information that clearly explains their rights under the new law,” said Dr Berry.

Now that the Bill has been passed into law the Commission will be finalising its guidance on each of the new provisions, which it will publish ahead of the changes coming into force.




Create new topic
643 posts

Ultimate Geek
+1 received by user: 72


  Reply # 955570 20-Dec-2013 17:12 Send private message

Interesting. Wonder if it will catch the snake oil sales companies that claim their expensive pills and potions "help support' joint mobility or whatever else ails old folks? Even worse is "may help support"!!

Will using these weasel words be seen as claiming their product "will do something"??

gzt

4199 posts

Uber Geek
+1 received by user: 164

Subscriber

  Reply # 955572 20-Dec-2013 17:22 Send private message

Maybe it should be moved to Off Topic, but this is posted in ICT regulation. I presume freitasm is predicting some impact to internet plan are advertising? ; )


1585 posts

Uber Geek
+1 received by user: 136


  Reply # 955578 20-Dec-2013 17:35 Send private message

love to see how they sell extended warranties now when they have to tell the customer at the same time that the CGA covers everything the extended warranty would but for no extra cost

6865 posts

Uber Geek
+1 received by user: 320


  Reply # 955590 20-Dec-2013 17:54 Send private message

vexxxboy: love to see how they sell extended warranties now when they have to tell the customer at the same time that the CGA covers everything the extended warranty would but for no extra cost


I thought the law had already changed regarding extended warranties, as they now seem to have benefits that the CGA doesn't cover. Such as some now cover wear and tear, and consumables for devices. SOme also provide you with loan products while the other is being repaired, which I don't think is usually required under the CGA

1585 posts

Uber Geek
+1 received by user: 136


  Reply # 955593 20-Dec-2013 17:59 Send private message

mattwnz:
vexxxboy: love to see how they sell extended warranties now when they have to tell the customer at the same time that the CGA covers everything the extended warranty would but for no extra cost


I thought the law had already changed regarding extended warranties, as they now seem to have benefits that the CGA doesn't cover. Such as some now cover wear and tear, and consumables for devices. SOme also provide you with loan products while the other is being repaired, which I don't think is usually required under the CGA



it may have changed but now companies by law have to tell the consumer all about the CGA and explain what it does, which is a big change. Now thay cant look at you blankly when you mention the CGA.

6865 posts

Uber Geek
+1 received by user: 320


  Reply # 955612 20-Dec-2013 18:24 Send private message

vexxxboy:
mattwnz:
vexxxboy: love to see how they sell extended warranties now when they have to tell the customer at the same time that the CGA covers everything the extended warranty would but for no extra cost


I thought the law had already changed regarding extended warranties, as they now seem to have benefits that the CGA doesn't cover. Such as some now cover wear and tear, and consumables for devices. SOme also provide you with loan products while the other is being repaired, which I don't think is usually required under the CGA



it may have changed but now companies by law have to tell the consumer all about the CGA and explain what it does, which is a big change. Now thay cant look at you blankly when you mention the CGA.


I wonder if it will result in increased prices on goods, as it potentially could lead to more CGA claims. I don't think the old law was that bad, and I think there are worse problems with legislation and laws to solve than this one.

Create new topic




Twitter »
Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:




News »

Trending now »
Hot discussions in our forums right now:

Lightbox press event release
Created by freitasm, last reply by Spiker on 1-Aug-2014 07:04 (86 replies)
Pages... 4 5 6


New Mobile plans coming?
Created by nunasdream, last reply by tardtasticx on 31-Jul-2014 23:42 (75 replies)
Pages... 3 4 5


Does acupuncture work?
Created by timmmay, last reply by darkasdes2 on 31-Jul-2014 22:30 (49 replies)
Pages... 2 3 4


Checking UHF aerial is working
Created by OnceBitten, last reply by B1GGLZ on 28-Jul-2014 21:49 (21 replies)
Pages... 2


2010 Honda Jazz, Suzuki Swift - which has higher maintenance cost?
Created by joker97, last reply by jonathan18 on 31-Jul-2014 10:47 (76 replies)
Pages... 4 5 6


2 x PS4s to give away. Geekzone members only.
Created by BigPipeNZ, last reply by bjorn on 31-Jul-2014 15:43 (72 replies)
Pages... 3 4 5


Hierarchy of a mistake: Gerry Brownlee
Created by joker97, last reply by DonGould on 29-Jul-2014 21:57 (93 replies)
Pages... 5 6 7


VF, why you lie to me?
Created by kenkeniff, last reply by TimA on 31-Jul-2014 23:52 (69 replies)
Pages... 3 4 5



Geekzone Live »
Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.