The government is calling on the public for feedback on its proposals to protect consumers and businesses from unfair commercial practices.
A discussion paper was released by Commerce and Consumer Affairs Minister Kris Faafoi and Minister for Small Business Stuart Nash. It outlines options on how to act against unfair commercial practices.
These practices could include the use of pressure tactics, deception and contract terms that are very one-sided. They can also include unfair contracts that shift risks on to one party or allow one party to unilaterally vary the terms of a contract.
“Unfair commercial practices can cause significant stress for consumers, in some cases leading to financial difficulty, while the consequences for businesses include cash flow issues, increased costs and stress,” Faafoi said. “I’ve heard about traders who have used aggressive tactics to sell products to vulnerable consumers, and businesses that were powerless to stop suppliers varying the terms of their contract, including price.”
Meanwhile, Nash pointed to unfair commercial practices relating to payments on small businesses that have “flow-on effects for other parts of the economy, especially for the families and communities these businesses support.”
While existing provisions in the Fair Trading Act and Commerce Act protect consumers and businesses against a range of unfair commercial practices, the ministers noted the government wants to make sure there aren’t any gaps in the current protections.
Submissions close February 25, 2019.
