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Enforcement and Effectiveness of Consumer Law in New Zealand

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Enforcement and Effectiveness of Consumer Law

Part of the book series: Ius Comparatum - Global Studies in Comparative Law ((GSCL,volume 27))

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Abstract

This chapter explains how consumer law operates in New Zealand. The methods of enforcement, including the availability of assistance from government and non-government agencies, are outlined. The difficulties consumers face in seeking redress, particularly in relation to low value goods and services, are highlighted.

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Notes

  1. 1.

    See generally: Tokeley (2014).

  2. 2.

    New Zealand has a population of 4,769,426. See: www.stats.govt.nz (accessed 28 February 2017).

  3. 3.

    See http://www.consumerprotection.govt.nz/.

  4. 4.

    The agreement is available at: <http://mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/Australia/index.php>.

  5. 5.

    Most of the provisions in Australia’s Trade Practices Act 1974 (now repealed) are now contained in the Australian Consumer Law which is set out in Schedule 2 of the Competition and Consumer Act 2010.

  6. 6.

    The Australian Consumer Law is set out in Schedule 2 of the Competition and Consumer Act 2010 (Australia).

  7. 7.

    See Consumer Guarantees Act 1993, section 2 and Australian Consumer Law, set out in Schedule 2 of the Competition and Consumer Act 2010, section 4—definitions of “consumer”.

  8. 8.

    Unconscionable conduct directed at consumers is controlled in Australia by Part 2.2 of the Australian Consumer Law which is set out in Schedule 2 of the Competition and Consumer Act 2010.

  9. 9.

    See http://www.consumerprotection.govt.nz/.

  10. 10.

    See http://www.comcom.govt.nz/.

  11. 11.

    Available at <http://tv.comcom.govt.nz/>.

  12. 12.

    See https://www.consumer.org.nz/.

  13. 13.

    Fair Trading Act 1986, sections 46H–46M.

  14. 14.

    Fair Trading Act 1986, sections 12A–12D.

  15. 15.

    Fair Trading Act 1986, sections 36T–36W.

  16. 16.

    Accident Compensation Act 2001.

  17. 17.

    Sale of Goods Act 1893 (UK).

  18. 18.

    Statute of Westminster 1931 adopted by New Zealand parliament in 1947 see: Statute of Westminster Adoption Act 1947.

  19. 19.

    The agreement is available at <http://mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/Australia/index.php>.

  20. 20.

    The Commerce Commission now has power to issue “infringement notices” in relation to certain breaches of the Fair Trading Act 1986—see: Fair Trading Act 1986, section 40D.

  21. 21.

    Sims (2014b), p. 739.

  22. 22.

    O’Sullivan (2016), p. 22; Sims (2010), p. 145; Palmer (2014), ch 11.

  23. 23.

    Disputes Tribunal Act 1988, sections 10 and 13.

  24. 24.

    Disputes Tribunal Rules 1989, Rule 5 proscribes the following fees: $45 for claims under $2000; $90 for claims $2000 or more but less than $5000; and $180 for claims which are $5000 or more.

  25. 25.

    Disputes Tribunal Act 1988, section 50.

  26. 26.

    Disputes Tribunal Act 1988, sections 45–47.

  27. 27.

    See <http://www.justice.govt.nz/tribunals/motor-vehicle-disputes-tribunal>.

  28. 28.

    District Courts Act 1947, section 29.

  29. 29.

    District Courts Fees Regulations 2009—as at 1 July 2014.

  30. 30.

    See: Sims (2014a), p. 241. For example: The Electricity & Gas Complaints Commissioner see: <www.egcomplaints.co.nz>, Telecommunications Dispute Resolution see: <www.tdr.org.nz>, Privacy Commissioner see: <www.privacy.org.nz>, Accident Compensation complaints see: <http://www.acc.co.nz/making-a-claim/what-if-i-have-problems-with-a-claim/ECI0046>, Motor Vehicle Disputes Tribunal see: <www.justice.govt.nz/tribunals/motor-vehicle-disputes-tribunal>, Health and Disability Commissioner see: <www.hdc.org.nz>, Retirement Commissioner see: <www.cflri.org.nz, Insurance and Savings Ombudsman> see: <www.iombudsman.org.nz>, Financial Services Complaints Ltd see: <www.fscl.org.nz>, Financial Dispute Resolution see: <www.fdr.og.nz>, The Banking Ombudsman see: <www.bankomb.org.nz>, Real Estate Agents Authority see: <www.reaa.govt.nz>, Tenancy Tribunal see: <www.dbh.govt.nz/tenancy-tribunal and www.justice.govt.nz/tribunals/tenancy-tribunal>, Plumbers, Gasfitters, and Drainlayer’s Board see: <www.pgdb.co.nz/complaints.html>, Electrical Workers Registration Board see: <ewrb.govt.nz>, Building Practitioners Board see: <www.lbp.govt.nz>, Weathertight Homes Tribunal see: <www.justice.govt.nz/tribunals/wht>, New Zealand Institute of Chartered Accountants see: <www.nzica.com> and Accountants and Tax Agents Institute of New Zealand see: <www.atainz.co.nz>, and New Zealand Law Society see: <www.lawsociety.org.nz/for-the-community/lawyers-complaints-service> all accessed 16 June 2015.

  31. 31.

    Sims (2014a), pp. 241, 284.

  32. 32.

    Sims (2010), pp. 145, 168 and Tokeley (2007), pp. 297, 306–313.

  33. 33.

    See: Sims (2010), pp. 145, 168 and Tokeley (2007), pp. 297, 306–313.

  34. 34.

    Palmer (2014), p. 520.

  35. 35.

    Palmer (2014), p. 515.

  36. 36.

    See <http://tvnz.co.nz/fair-go>.

  37. 37.

    Target is a television show produced in New Zealand which ran for 11 seasons but has been off air since 2013.

  38. 38.

    See <http://www.consumerprotection.govt.nz/> accessed 23 March 2016.

  39. 39.

    See <www.comcom.govt.nz> accessed 1 August 2015.

  40. 40.

    See Sims (2010), p. 145 and Palmer (2014), p. 523.

  41. 41.

    See generally, Sims (2010), p. 145 and O’Sullivan (2016), p. 22.

  42. 42.

    O’Sullivan (2016), p. 22.

  43. 43.

    Letter dated 29 April 2015 from the Ministry of Justice in response to an official information request from the author.

  44. 44.

    See <http://www.justice.govt.nz/tribunals/disputes-tribunal/decisions-of-note> accessed 16 June 2015.

  45. 45.

    The author contacted the Disputes Tribunal in November 2014 to ascertain whether the Tribunal has statistics which record the numbers of different types of disputes dealt with by the Tribunal but was advised that such statistics are not available.

  46. 46.

    See http://www.nzlii.org/cgi-bin/sinosrch.cgi?method=auto;meta=%2Fnz;mask_path=nz%2Fcases%2FNZMVDT;mask_world=;query=MVD;results=20;submit=Search;rank=on;callback=off;legisopt=;view=date;max=;offset=0.

  47. 47.

    Legal Services Regulations 2011, section 6.

  48. 48.

    See https://www.govt.nz/organisations/consumer-protection/.

  49. 49.

    See http://www.comcom.govt.nz/the-commission/about-us.

  50. 50.

    See https://www.consumer.org.nz/.

  51. 51.

    See https://www.consumer.org.nz/.

  52. 52.

    See https://www.consumer.org.nz/topics/our-work.

  53. 53.

    See www.consumersinternational.org.

  54. 54.

    See Sect. 3.5 above.

  55. 55.

    See Sect. 3.6 above.

  56. 56.

    Consumer Guarantees Act 1993, sections 5–13.

  57. 57.

    Consumer Guarantees Act 1993, sections 28–31.

  58. 58.

    Consumer Guarantees Act 1993, sections 18–27 (goods’ remedies) and sections 32–38 (services’ remedies).

  59. 59.

    Fair Trading Act 1986, section 13(i).

  60. 60.

    Fair Trading Act 1986, sections 9–12.

  61. 61.

    Fair Trading Act 1986, sections 12A–14.

  62. 62.

    Fair Trading Act 1986, sections 17–26.

  63. 63.

    Fair Trading Act 1986, sections 41 and 43.

  64. 64.

    Fair Trading Act 1986, section 40.

  65. 65.

    Fair Trading Act 1986, s 46H and see: Sims (2014b), p. 739.

  66. 66.

    Fair Trading Act 1986, section 40.

  67. 67.

    Fair Trading Act 1986, section 40A.

  68. 68.

    Fair Trading Act 1986, section 40D.

  69. 69.

    Fair Trading Act 1986, section 40B.

  70. 70.

    See http://www.comcom.govt.nz/fair-trading/fair-trading-media-releases/show/2016/.

  71. 71.

    Credit Contracts and Consumer Finance Act 2003, section 103.

  72. 72.

    See <http://www.oecd.org/sti/consumer/34023811.pdf> accessed 1 August 2015.

  73. 73.

    Clause 36 of the Model Code requires businesses to establish fair and effective internal procedures to address and respond to consumer complaints within a reasonable time, in a reasonable manner, free of charge to the consumer and without prejudicing the rights of the consumer to seek legal redress. Clause 38 requires businesses to provide consumers, who are unsatisfied with the resolution provided by any internal complaint handling mechanism, with information regarding any external dispute resolution body to which the business subscribes or any relevant government body. Clause 39 requires businesses to provide clear and easily accessible information to consumers on any independent customer dispute resolution mechanism to which the business subscribes that is capable of dealing with consumer complaints. Clause 42 requires any business based in New Zealand that enters into a contract with a consumer whom the business reasonably believes is resident in New Zealand (e.g. because of address details supplied by the consumer) to specify that the governing law of that contract is the law of New Zealand and that disputes arising under the contract shall be determined by courts or tribunals in New Zealand.

  74. 74.

    See O’Sullivan (2016), p. 22.

References

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O’Sullivan, T. (2018). Enforcement and Effectiveness of Consumer Law in New Zealand. In: Micklitz, HW., Saumier, G. (eds) Enforcement and Effectiveness of Consumer Law. Ius Comparatum - Global Studies in Comparative Law, vol 27. Springer, Cham. https://doi.org/10.1007/978-3-319-78431-1_17

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