Notice Board - News

Consumer Redress: Feedback Sought

Ministry of Consumer Affairs, National

The Ministry of Consumer Affairs has begun a review of current consumer protection legislation. The objective of the review is to measure the effectiveness of the current redress and enforcement provisions of the Fair Trading Act 1986 (FTA) and the Consumer Guarantees Act (CGA), then assess whether there is a need to amend either of them.

The Ministry has issued an initial discussion paper (or as the Ministry puts it, a "think piece") which outlines the scope of the review and provides a summary of the theoretical and conceptual literature behind it. Because of the wide scope of the review (which is expected to last over the next two years), a further four papers are to be released:

• a discussion paper (encompassing existing redress and enforcement provisions, overseas provisions, and cross-border issues relating to the FTA and CGA);
• a report analysing results of the national consumer survey on consumer knowledge and use of redress and enforcement provisions of the two Acts;
• a report analysing results of a trader survey of their knowledge of the FTA and CGA; and
• another discussion paper, presenting a full analysis of the review findings as well as an outline of proposed recommendations, e.g., amendments to the FTA and CGA.

The first survey (see above) is a national survey about consumers' awareness and understanding of consumer protection law and their experience in seeking redress. The second is a national survey about trader awareness and understanding of consumer protection law. This survey will also seek to explore trader behaviour and attitudes to such legislation.

Submissions close on 31 August 2005. The paper can be read or downloaded at www.consumeraffairs.govt.nz/policylawresearch/enforcement-review/paper-one. If you think you would like to know more about this review, and perhaps participate in it, then let the Ministry know of your interest by emailing them at enforcement-review@mca.govt.nz.