Consumer protection laws are being significantly strengthened through a bill that's passed its first reading in Parliament.
The Fair Trading Act and the Consumer Guarantees Act haven't been updated in 20 years and don't deal properly with Trade Me-style auctions, supermarket self-service systems and telephone sales using credit cards, Consumer Affairs Minister Chris Tremain says.
The bill also puts new provisions in the Fair Trading Act which require traders to have "reasonable grounds" for any claims they make.
The Commerce Commission will have a wider range of enforcement measures and the Disputes Tribunal will be able to hear cases under the "misleading and deceptive conduct" provisions in the Fair Trading Act.
The bill has been sent to a select committee for public submissions. It has to pass its second reading, committee and third reading stages before becoming law.
NZN