Fair Trading Act 1986

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
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Reprint as at 1 September 2017

Coat of Arms of New Zealand

Fair Trading Act 1986

Public Act
1986 No 121
Date of assent
17 December 1986
see section 1(2)

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Business, Innovation, and Employment.


Title [Repealed]
1Short Title and commencement
3Application of Act to conduct outside New Zealand
4Application of Act to the Crown
5Application of Act to Crown corporations
5ANo liability under Act if not liable under Securities Act 1978 or Securities Markets Act 1988 [Repealed]
5BAct does not apply to certain conduct regulated by Takeovers Code
5CNo contracting out: general rule
5DNo contracting out: exception for parties in trade
6Functions of Commission in relation to dissemination of information
7Money to be appropriated by Parliament for purposes of this Act [Repealed]
8Annual report [Repealed]
9Misleading and deceptive conduct generally
10Misleading conduct in relation to goods
11Misleading conduct in relation to services
12Misleading conduct in relation to employment
12AUnsubstantiated representations
12BCourt must have regard to certain matters
12CLimitation on commencement of proceedings in relation to unsubstantiated representations
12DSection 12A subject to other enactments
13False or misleading representations
14False representations and other misleading conduct in relation to land
14AWhen vendor bids are misrepresentations
15Limited application of sections 9 to 14 to news media
16Certain conduct in relation to trade marks prohibited
17Offering gifts and prizes
18Trading stamp schemes prohibited [Repealed]
19Bait advertising
20Referral selling
21Demanding or accepting payment without intending to supply as ordered
21ALiability of recipient of unsolicited goods
21BLiability of recipient of unsolicited services
21CProhibition on asserting right to payment in respect of unsolicited goods or unsolicited services
22Misleading representations about certain business activities
23Harassment and coercion
24Pyramid selling schemes
25Provisions of this Part not limited by reference to other provisions of this Part
26Importation of goods bearing false trade description
26AUnfair contract terms in standard form consumer contracts
27Consumer information standards
28Compliance with consumer information standards
28ARegulations relating to disclosure by fund-raisers making requests for charitable purposes
28BDisclosure of trader status on Internet
29Product safety standards
30Compliance with product safety standards
30AProduct safety policy statements
30BReview of product safety policy statements
31Unsafe goods
31AVoluntary product recall
32Compulsory product recall
33Importation of certain goods prohibited
33AAppointment of product safety officers
33BCertificates of appointment
33CPowers of product safety officers
33DSuspension of supply notices
34Meaning of services
35Safety standards in respect of services
36Compliance with services safety standards
36APurpose of Part
36BMeaning of layby sale agreement
36CDisclosure requirements relating to layby sale agreement
36DFurther disclosure if requested by consumer
36ERisk in goods
36FCancellation of layby sale agreement by consumer
36GCancellation of layby sale agreement by supplier
36HEffect of cancellation of layby sale agreement
36IBankruptcy, receivership, liquidation, or voluntary administration of supplier: completion of layby sale agreement
36JBankruptcy, receivership, or liquidation of supplier: consumer priority
36KMeaning of uninvited direct sale agreement
36LDisclosure requirements relating to uninvited direct sale agreements
36MCancellation of uninvited direct sale agreement by consumer
36NEnforcement of uninvited direct sale agreement by supplier
36OEffect of cancellation of uninvited direct sale agreement
36PSupplier’s obligations on cancellation of uninvited direct sale agreement
36QConsumer’s obligations on cancellation of uninvited direct sale agreement
36RCompensation on cancellation of uninvited direct sale agreement
36TMeaning of extended warranty agreement and related definitions
36UDisclosure requirements relating to extended warranty agreements
36VCancellation of extended warranty agreement
36YApplication of subpart
36ZEach lot is separate contract of sale
36ZAStart and end of auction
36ZBNotice to participants
36ZCVendors selling in trade
36ZDVendor bids
36ZEBids may be withdrawn until end of auction
36ZFAccount and payment of proceeds
37Jurisdiction of High Court
38Jurisdiction of District Court
39Jurisdiction of Disputes Tribunal
40Contraventions of provisions of Parts 1 to 4A an offence
40AAdditional penalty for contravention of section 24 involving commercial gain
40BInfringement offence, etc, defined
40CInfringement offence alleged
40DIssue of infringement notice
40EProcedural requirements for infringement notices
40FWhat Commission does with infringement fees
40GEffect of infringement notice
40HRegulations relating to infringement offences
41Injunctions may be granted by court for contravention of Part 1, Part 2, Part 3, and Part 4
42Order to disclose information or publish advertisement
43Other orders
43AApplication for order under section 43
43BLimits on jurisdiction of District Court and Disputes Tribunal to make orders under section 43
45Conduct by servants or agents
46Finding in proceedings to be evidence
46ACommission may accept undertakings
46BEnforcement of undertakings
46CManagement banning orders
46DTerms of management banning orders
46EOffence to breach management banning order
46FProcedures relating to management banning order
46GSeeking leave of court
46HApplication by Commission for declaration of unfair contract term
46IDeclaration of unfair contract terms
46JStandard form contracts
46KTerms that may not be declared to be unfair contract terms
46LWhen term in consumer contract is unfair
46MExamples of unfair contract terms
47Power to search
47APowers conferred by warrant [Repealed]
47BWarrant to be produced [Repealed]
47COther duties of person who executes a warrant [Repealed]
47DDuty to assist [Repealed]
47EPower to inspect documents and goods [Repealed]
47FOffence to resist, obstruct, or delay
47GCommission may require person to supply information or documents or give evidence
47IService of notices
47JOffence to contravene section 47G
47KCommission may authorise employees for monitoring and enforcement purposes
47LPowers of authorised employees
48Proceedings privileged
48ASharing of information and documents with Financial Markets Authority or Takeovers Panel
48BPurpose of sections 48C to 48O (which relate to assistance to overseas regulators)
48CDefinitions of terms used in sections 48B to 48O
48DRestrictions on providing compulsorily acquired information and investigative assistance
48EGovernment-to-government co-operation arrangements
48FRegulator-to-regulator co-operation arrangements
48GContent of co-operation arrangements
48HProcedures relating to co-operation arrangements
48IProviding compulsorily acquired information and investigative assistance
48JConditions on providing compulsorily acquired information and investigative assistance
48KNotice to persons affected by provision of information
48LReporting on use of co-operation arrangements
48MSharing of non-compulsorily acquired information not affected
48NInformation provided by consent
48OMaintenance of privilege
48PProceedings relating to financial products or financial services
48QNo pecuniary penalty and fine for same conduct involving financial products or financial services
48RUnsubstantiated representations prohibition does not apply to financial markets disclosure
48SCertain conduct under Financial Markets Conduct Act 2013 does not contravene various provisions of this Act
49Repeals and consequential amendments
50Saving of other laws
51Application of Act to goods that are, or may be, exported to China
Reprint notes
Title [Repealed]

Title: repealed, on 18 December 2013, by section 4 of the Fair Trading Amendment Act 2013 (2013 No 143).