This Government bill amends the Fair Trading Act 1986 to keep it fit for purpose as business practices and digital markets evolve. It reforms penalties and enforcement by shifting most breaches from a primarily criminal model to a civil liability regime while retaining criminal offences for serious or intentional misconduct, enables proactive scam disruption (including a safe harbour), and streamlines product safety settings. The bill is currently before Parliament, having passed its first reading on 27 May 2026.
The Fair Trading Amendment Bill updates New Zealand's core consumer-protection law to curb misleading business practices, especially around pricing. It targets "drip pricing" and dodgy promotions — where the advertised price isn't what shoppers actually pay, or "sale" claims don't reflect real savings — so the price people see is the price they pay. It sharply raises maximum penalties for breaches (up to $5 million, three times any commercial gain, or the transaction value — whichever is greatest, versus the old $600,000 cap), creates a "safe harbour" letting online platforms swiftly remove suspected scam content without liability if they act reasonably, and shifts most breaches from criminal to civil liability while keeping serious misconduct criminal. It affects retailers, online marketplaces and everyday shoppers.
This is a government bill amending the Fair Trading Act 1986, introduced by Economic Growth Minister Nicola Willis and Commerce and Consumer Affairs Minister Cameron Brewer. Supporters say the price people see should be the price they pay, and that tougher penalties stop firms treating fines as a mere cost of doing business. Critics warn the new obligations raise compliance costs and uncertainty for business, that the scam "safe harbour" could encourage platforms to over-remove lawful content, and that moving most breaches from criminal to civil liability may weaken deterrence for the worst offenders.
See the Parliament.nz ↗ site for the full bill.