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Fair Trading Act 1986 | |
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New Zealand Parliament | |
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Royal assent | 17 December 1986 |
Status: Current legislation |
The Fair Trading Act 1986 is a statute of New Zealand, developed as complementary legislation to the Commerce Act 1986. [1] Its purpose is to encourage competition and to protect consumers/customers from misleading and deceptive conduct and unfair trade practices. [2]
The Fair Trading Act provides for consumer information standards. Under the Act, the Commerce Commission enforces product safety standards on items such as bicycles and flammability of children's night clothing.
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The Act protects customers from unfair conduct. Unfair conduct has been classified in the act as the following:
Part 2 of the Act also looks at Consumer information. It defines standards and also compliance requirements.
A 2015 amendment increased protection against "unfair contracts". [8]
- Difference between the Fair Trading Act and the Consumer Guarantees Act (CGA): the FTA covers claims on products and services before they are bought while the CGA covers claims after the product or service has been bought. [9]
The Fair Trading Act 1986 is a significant piece of legislation in New Zealand that is designed to promote fair competition and protect consumers from unfair business practices. Here are some key facts about the Fair Trading Act 1986:
The primary purpose of the Fair Trading Act 1986 is to promote fair competition and to protect consumers and businesses from misleading or deceptive conduct in trade.
The Act is enforced by the Commerce Commission, an independent Crown entity responsible for enforcing competition, fair trading, and consumer credit contracts laws in New Zealand.
The Act makes it unlawful for businesses to engage in misleading or deceptive conduct in trade. This includes false advertising, false claims about products or services, and any form of misleading communication.
In addition to prohibiting misleading conduct, the Act also addresses other unfair practices, such as bait advertising (where a business advertises a product at a certain price but then refuses to sell it) and pyramid selling schemes.
The Act sets out consumer guarantees that products and services must meet. These include guarantees that goods are of acceptable quality, match their description, and are fit for purpose.
The Fair Trading Act also covers product safety. It is illegal to sell goods that are unsafe, and businesses are required to notify the Commerce Commission if they become aware of a product that could be a danger to consumers.
Businesses found to be in breach of the Act can face significant penalties, including fines and other enforcement measures. The penalties are designed to deter businesses from engaging in unfair or deceptive practices.
The Act also allows consumers and businesses to take legal action against traders who engage in misleading or deceptive conduct. This means that individuals or entities affected by a breach of the Act can seek remedies through the courts.
The Act requires businesses to provide clear and accurate information to consumers about products and services, including pricing, terms and conditions, and any additional costs.
The Fair Trading Act 1986 applies not only to domestic trade but also to international trade conducted by New Zealand businesses. This ensures that businesses are held to the same standards when dealing with both local and international consumers.
The Act has undergone several amendments since its inception in 1986 to address emerging issues in the marketplace and to align with international best practices in consumer protection. The Fair Trading Act 1986 plays a crucial role in regulating the marketplace in New Zealand, aiming to ensure that businesses operate with honesty, transparency, and integrity, and that consumers are protected from unscrupulous practices. It has been instrumental in creating a fair and competitive trading environment in the country.
On 11 September 2024, Parliament passed a private member's bill which amended the Fair Trading Act 1986 to ensure that gift cards have a minimum expiry date of three years from their initial purchase. The bill was supported by all parties except ACT. [10]
The Federal Trade Commission Act of 1914 is a United States federal law which established the Federal Trade Commission. The Act was signed into law by US President Woodrow Wilson in 1914 and outlaws unfair methods of competition and unfair acts or practices that affect commerce.
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust law enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.
The Australian Competition and Consumer Commission (ACCC) is the chief competition regulator of the Government of Australia, located within the Department of the Treasury. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974, which was renamed the Competition and Consumer Act 2010 on 1 January 2011. The ACCC's mandate is to protect consumer rights and business rights and obligations, to perform industry regulation and price monitoring, and to prevent illegal anti-competitive behaviour.
Unfair business practices describes a set of practices by businesses which are considered unfair, and which may be unlawful. It includes practices which are covered by other areas of law, such as fraud, misrepresentation, and oppressive or unconscionable contract terms. Protections may be afforded to business-to-business dealings, or may be limited to those dealing as consumers. Regulation of such practices is a departure from traditional views of freedom to agree on contractual terms, summed up in the 1804 French Civil Code as qui dit contractuel dit juste.
False advertising is the act of publishing, transmitting, distributing, or otherwise publicly circulating an advertisement containing a false claim, or statement, made intentionally to promote the sale of property, goods, or services. A false advertisement can be classified as deceptive if the advertiser deliberately misleads the consumer, rather than making an unintentional mistake. A number of governments use regulations or other laws and methods to limit false advertising.
The Competition and Consumer Act 2010 (CCA) is an Act of the Parliament of Australia. Prior to 1 January 2011, it was known as the Trade Practices Act 1974 (TPA). The Act is the legislative vehicle for competition law in Australia, and seeks to promote competition, fair trading as well as providing protection for consumers. It is administered by the Australian Competition & Consumer Commission (ACCC) and also gives some rights for private action. Schedule 2 of the CCA sets out the Australian Consumer Law (ACL). The Federal Court of Australia has the jurisdiction to determine private and public complaints made in regard to contraventions of the Act.
Misleading or deceptive conduct is a doctrine of Australian law.
The Unfair Commercial Practices Directive 2005/29/EC regulates unfair business practices in EU law, as part of European consumer law. It requires corresponding laws to be passed that incorporate it into each member state's legal system. It is intended to provide a level playing field in the single market, reducing trade barriers.
The Commerce Commission is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regulatory responsibility for areas such as electricity and gas, telecommunications, dairy products and airports. It is an independent Crown entity established under the Commerce Act 1986. Although responsible to the Minister of Commerce and Consumer Affairs and the Minister of Broadcasting, Communications and Digital Media, the Commission is run independently from the government, and is intended to be an impartial promotor and enforcer of the law.
Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent businesses from engaging in fraud or specified unfair practices to gain an advantage over competitors or to mislead consumers. They may also provide additional protection for the general public which may be impacted by a product even when they are not the direct purchaser or consumer of that product. For example, government regulations may require businesses to disclose detailed information about their products—particularly in areas where public health or safety is an issue, such as with food or automobiles.
Federal Trade Commission v. Sperry & Hutchinson Trading Stamp Co., 405 U.S. 233 (1972), is a decision of the United States Supreme Court holding that the Federal Trade Commission (FTC) may act against a company's “unfair” business practices even though the practice is none of the following: an antitrust violation, an incipient antitrust violation, a violation of the “spirit” of the antitrust laws, or a deceptive practice. This legal theory is termed the "unfairness doctrine."
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The Consumer Council is an independent statutory authority in Hong Kong, established in 1974 and formalised in April 1977 under the Consumer Council Ordinance. Its role is to enhance consumer welfare and empower consumers to protect themselves. Over the course of the past four decades the expansion in the council's duties and services on consumer protection, such as the publishing of the CHOICE Magazine in 1976, the recent launch of online price-watching tools, and conducting studies on different aspects of the consumer market, have coincided with the socio-economic development of Hong Kong. Apart from being a consumer advisor, it has assumed the role as a key stakeholder in making of consumer-related policies.
FTC v. Balls of Kryptonite is an enforcement action brought in 2009 by the U.S. Federal Trade Commission (FTC) in United States District Court for the Central District of California. The defendant was Jaivin Karnani, a Southern California man, his company Balls of Kryptonite LLC, and several other corporate names they did business as. In 2011 the FTC secured a court order barring Karnani and Balls of Kryptonite from engaging in many of the deceptive business practices that had brought him to the agency's attention.
Central Consumer Protection Authority is a regulatory authority set up under Section 10(1) of the Consumer Protection Act, 2019 in relation to matters affecting rights of consumers by individuals or entities following improper trade practices or by display of inappropriate or wrong advertisements affecting public interest and helps promoting consumer trust by enforcing the rights of consumers through effective guidelines.