Consumer Law Reform Bill

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Hon Simon Bridges

Consumer Law Reform Bill

Government Bill

287—2

As reported from the Commerce Committee

Contents

Part 1
Amendments to consumer laws

Subpart 1 —Fair Trading Act 1986

3 Principal Act amended

4 Long Title repealed

5 New section 1A inserted

6 Interpretation

Application of Act to the Crown

6A Application of Act to the Crown

No contracting out

7 New sections 5C and 5D inserted

5C No contracting out: general rule

5D No contracting out: exception for parties in trade

8 Heading to Part 1 substituted

Unsubstantiated representations

9 New heading and section 12A inserted

Unsubstantiated representations

12A Unsubstantiated representations

12B Section 12A subject to other enactments

False or misleading representations

10 False or misleading representations

Unsolicited goods and services

11 New sections 21A to 21D inserted

21A Liability of recipient of unsolicited goods

21B Liability of recipient of unsolicited services

21C Prohibition on asserting right to payment in respect of unsolicited goods or unsolicited services

21D Regulations

11A New heading and section 26A inserted

Unfair contract terms

26A Unfair contract terms in standard form consumer contracts

Consumer information standards

12 Consumer information standards

12A Compliance with consumer information standards

Disclosure of trader status

12B New section 28B inserted

28B Disclosure of trader status on Internet

13 New sections 30A and 30B inserted

30A Product safety policy statements

30B Review of product safety policy statements

Declaring goods unsafe

14 Unsafe goods

15 New section 31A inserted

31A Voluntary product recall

16 Compulsory product recall

Product safety officers

17 New heading and sections 33A to 33D inserted

Product safety officers

33A Appointment of product safety officers

33B Certificates of appointment

33C Powers of product safety officers

33D Suspension of supply notices

New Part 4A inserted

18 New Part 4A inserted

Part 4A
Consumer transactions and auctions

36A Purpose of Part

Subpart 1 —Layby sales

36B Meaning of layby sale agreement

36C Disclosure requirements relating to layby sale agreement

36D Further disclosure if requested by consumer

36E Risk in goods

36F Cancellation of layby sale agreement by consumer

36G Cancellation of layby sale agreement by supplier

36H Effect of cancellation of layby sale agreement

36I Bankruptcy, receivership, liquidation, or voluntary administration of supplier: completion of layby sale agreement

36J Bankruptcy, receivership, or liquidation of supplier: consumer priority

Subpart 2 —Uninvited direct sales

36K Meaning of uninvited direct sale agreement

36L Disclosure requirements relating to uninvited direct sale agreements

36M Cancellation of uninvited direct sale agreement by consumer

36N Enforcement of uninvited direct sale agreement by supplier

36O Effect of cancellation of uninvited direct sale agreement

36P Supplier's obligations on cancellation of uninvited direct sale agreement

36Q Consumer's obligations on cancellation of uninvited direct sale agreement

36R Compensation on cancellation of uninvited direct sale agreement

Subpart 3 —Extended warranties

36S Meaning of extended warranty agreement and related definitions

36T Disclosure requirements relating to extended warranty agreements

36U Cancellation of extended warranty agreement

36UA Regulations

Subpart 4 —Auctions

36V Definitions

36W Application of subpart

36X Each lot is separate contract of sale

36Y Start and end of auction

~~36Z Notice to participants before each auction~~

36Z Notice to participants

36ZAA Vendors selling in trade

36ZA Vendor bids

36ZB Bids may be withdrawn until end of auction

36ZC Account and payment of proceeds

19 Jurisdiction of High Court

20 Jurisdiction of District Courts

21 Jurisdiction of Disputes Tribunals

Offences and orders

22 Contraventions of provisions of Part 1, Part 2, Part 3, and Part 4 an offence

22A Additional penalty for contravention of section 24 involving commercial gain

23 New sections 40B to 40H inserted

23A Summary Proceedings Act 1957 consequentially amended

23B Order to disclose information or publish advertisement

24 New sections 43 to 43B substituted

43 Other orders

43A Application for order under section 43

43B Limits on jurisdiction of District Court and Disputes Tribunal to make orders under section 43

25A Finding in proceedings to be evidence

Enforceable undertakings and management banning orders

26 New headings and sections 46A to 46G inserted

26A New heading and sections 46H to 46M inserted

Declaration of unfair contract terms

46H Application by Commission for declaration of unfair contract term

46I Declaration of unfair contract terms

46J Standard form contracts

46K Terms that may not be declared to be unfair contract terms

46L When term in consumer contract is unfair

46M Examples of unfair contract terms

Offences (consequential)

27 New section 47F substituted

47F Offence to resist, obstruct, or delay

27A Commission may require person to supply information or documents

Authorised employees

28 New sections 47K and 47L inserted

47K Commission may authorise employees for monitoring and enforcement purposes

47L Powers of authorised employees

Consequential amendments, repeals, and savings

29 Saving of other laws

30 Consequential repeals and amendments

31 Repeal and savings relating to Layby Sales Act 1971

Subpart 2 —Consumer Guarantees Act 1993

32 Principal Act amended

33 Long Title repealed

34 New section 1A inserted

Gas and electricity, and auctioneers

35 Interpretation

Delivery of goods

35A New section 5A inserted

5A Guarantee as to delivery

35B Meaning of acceptable quality

Gas and electricity

36 New sections 7A and 7B inserted

7A Guarantee of acceptable quality in supply of gas and electricity

7B Relationship of section 7A with rest of Act

Collateral credit agreements

37 New section 23A inserted

23A Goods subject to collateral credit agreement

37A New section 39A inserted

39A Services subject to collateral credit agreement

~~Carriage of goods~~

~~40 New section 41A inserted~~

~~41A Goods sold at auction~~

Contracting out for business transactions

40A No contracting out except for business transactions

Gas and electricity

41 New section 46A inserted

46A Indemnification of gas and electricity retailers

42 Jurisdiction

Gas and electricity

43 Consequential amendments in Schedule 2

Subpart 3 —Weights and Measures Act 1987

44 Principal Act amended

45 Long Title repealed

46 New section 1A inserted

47 Interpretation

48 New section 6 substituted

6 Reference standards

49 Inspectors' working standards

50 Accredited persons' working standards

51 New section 13 substituted

13 Obligation in respect of invoice or delivery note

52 New sections 15 and 15A substituted

15 Counting of goods sold by retail

15A Weighing and measuring of goods sold by retail

53 New section 22B inserted

22B Certificate of accuracy required for certain weighing or measuring instruments

53A Infringement offences

53B Form and content of infringement notice

53C New section 32BA inserted

32BA Effect of infringement notice

53D New section 33 substituted

~~54 Infringement fee~~

54 Section 33A repealed

55A New section 41B inserted

41B Regulations relating to infringement fees

Subpart 4 —Secondhand Dealers and Pawnbrokers Act 2004

56 Principal Act amended

57 Interpretation

58 Secondhand dealers engaged in business to be licensed

Subpart 5 —Carriage of Goods Act 1979

59 Principal Act amended

~~60 Other remedies affected~~

~~61 Contracting out~~

~~62 New section 8A inserted~~

~~8A Carrier must offer contract for carriage at limited carrier's risk or declared value risk~~

63 Limitation of amount of carrier's liability

Part 2
Auctioneers

64 Purpose of Part

65 Interpretation

Registration requirements

66 Registration of person carrying on business as auctioneer

67 Disqualification from registration

Restriction on who registered auctioneers may engage as auctioneer

67A Restriction on who registered auctioneers may engage as auctioneer

Application for registration

68 Application for registration to carry on business as auctioneer

69 Information and material to be included in application

70 Acceptance of application

71 Refusal of application

Duration of registration

72 Registration expires after 12 months

73 Annual confirmation

74 Cancelling registrations

75 When registered auctioneer ceases to be registered

76 Obligation to notify Registrar of changes

Record-keeping obligations

77 Auctioneer record

78 Storage and inspection of auctioneer record

Registrar and register

79 Registrar of Auctioneers

80 Registrar's certificate

81 Register of auctioneers

Appeals against decisions of Registrar

83 Interim order by District Court

Transitional provisions

86 Application of this Part to existing licence holders and others

Consequential and other amendments

87 Amendments removing exemption from requirement to be registered

88 Consequential repeal and amendments

Schedule 1
Consequential amendments arising from amendments to Fair Trading Act 1986

Schedule 2
Consequential amendments relating to gas and electricity arising from amendments to Consumer Guarantees Act 1993

Schedule 3
Amendments relating to auctioneers

Legislative history

The Parliament of New Zealand enacts as follows: