Tax refund agents are being warned to ensure they comply with the law after complaints that they were not being upfront with customers.
The Commerce Commission says it has written to 30 personal tax summary intermediaries urging them to ensure they disclose the cost of their services and future contract details.
The commission's Stuart Wallace says it had received a number of complaints and the agents need to look at their websites and marketing material.
An investigation had found some were making "no charge" claims when customers had to pay the costs of processing any refund they were entitled to and others included obligations to use the service in future years.
The commission would keep watch on the industry and take action if any failed to comply with the Fair Trading Act.
Mr Wallace says people can find out for free if they were entitled to a refund and apply for it themselves through Inland Revenue but if they did use agents they should get accurate information.
NZN