Fair Trading Amendment Bill

Fair Trading Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT This Bill amends the Fair Trading Act 1986 (the Act ). The Act is a core part of New Zealand’s consumer law framework and sets baseline rules for how businesses interact with consumers, including prohibitions on misleading and deceptive conduct, false representations, and unfair practices. The Act plays a central role in supporting consumer confidence, consumer protection, and well-functioning markets. The Commerce Commission (the Commission ) enforces the Act and the courts determine breaches and impose penalties and other remedies. The Bill’s objectives are to ensure that the Act remains fit for purpose as business practices and digital markets evolve, strengthen deterrence of unfair trading conduct, support appropriate consequences for breaches, and enable efficient and effective enforcement. The Bill also includes targeted changes intended to support proactive scam disruption and to keep product safety settings up to date. The Bill achieves these objectives through a package of reforms in three related areas: reforming penalties and enforcement, enabling proactive scam disruption, and streamlining product safety settings. The Bill modernises the Act’s enforcement and remedies framework by shifting most breaches from a primarily criminal enforcement model to a civil liability regime, while retaining criminal offences for a limited set of intentional and serious misconduct provisions (including serious product safety offending and conduct that obstructs enforcement). The Bill includes the machinery provisions needed to operate the civil liability regime, including processes and supporting rules for civil proceedings, civil liability orders, defences, and time limits. The Bill raises the maximum civil penalties and criminal fines for breaches. For serious breaches, the new maximums can also take into account the financial benefit from misconduct. The Bill introduces a statutory safe harbour conditional defence to protect online service providers from civil liability in proceedings when they act in good faith to proactively disrupt suspected scam activity. The safe harbour defence is intended to encourage timely action to reduce consumer harm from scams, while remaining subject to conditions designed to ensure that the protection is used appropriately and civil liberties are protected. The defence is available where an online service provider has reasonable grounds to believe that an activity is a scam. In addition, the disruption action must be reasonably proportionate, taken in good faith, commenced within a specified time frame, and promptly reversed if the provider no longer has reasonable grounds to believe that the activity is a scam. The Bill streamlines the legislative framework under the Act for product safety requirements. The aim of this is to help ensure that they can be kept up to date as necessary. It enables regulations to authorise the chief executive of the Ministry of Business, Innovation, and Employment to set technical product safety requirements by issuing product safety notices, while regulations made by the Governor-General will set which products are subject to product safety regulation. This is intended to improve flexibility and timeliness in updating references to technical standards as they change and keeping settings aligned internationally, within the scope set by the regulations, to facilitate trade. DEPARTMENTAL DISCLOSURE STATEMENT The Ministry of Business, Innovation, and Employment is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill. A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2026&no=299 REGULATORY IMPACT STATEMENT The Ministry of Business, Innovation, and Employment produced regulatory impact statements on 23 April 2026 to help inform the main policy decisions taken by the Government relating to the contents of this Bill. Copies of these regulatory impact statements can be found at— https://www.mbie.govt.nz/dmsdocument/31960-regulatory-impact-statement-updating-the-penalties-regime-in-the-fair-trading-act-1986 https://www.mbie.govt.nz/dmsdocument/31959-regulatory-impact-statement-on-the-safe-harbour-provision-to-support-online-service-providers-to-disrupt-online-scams https://www.regulation.govt.nz/our-work/regulatory-impact-statements/ CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 provides for most of the Bill to come into force 6 months after Royal assent. The exceptions come into force on the day after Royal assent and are listed in clause 2(2) . They include amendments that relate to— changes to the way that product safety standards are made: a new defence against civil liability for online service providers who take action to disrupt suspected scams. Clause 3 provides for the Bill to amend the Fair Trading Act 1986 (the Act ). AMENDMENTS TO PRINCIPAL ACT Clause 4 amends section 2, which provides for interpretation. The main changes are to— insert new definitions of terms that are relevant to the new civil liability regime being added to the Act: insert a new definition of resupply: repeal terms relating to the infringement offence regime in the Act, along with the definition of official standard. Clause 5 amends section 5D, which relates to the ability of parties in trade, to include provisions in their agreements with each other that would otherwise contravene certain provisions of the Act. The amendments account for the new civil liability regime being added to the Act (for example, to reflect that some of the provisions to which section 5D relates will now attract civil liability). Clause 6 updates a cross-reference. Clause 7 repeals section 19(3), which relates to a defence that is now covered in new section 43C . Clause 8 repeals section 27(2), which relates to the ability of regulations to incorporate material by reference. The effect is neutral because the same outcome is achieved by the Legislation Act 2019. Clauses 9 and 10 relate to product safety standards. Clause 9 amends section 29 so that, in addition to the ability to prescribe product safety standards in regulations, regulations will be able to authorise the chief executive of the department responsible for the Act (currently, the Ministry of Business, Innovation, and Employment) to prescribe the same matters in a product safety notice. Clause 10 authorises the chief executive to make a product safety notice if regulations are made under section 29 authorising that to happen. Clauses 11 and 12 add prohibitions on resisting, obstructing, or delaying a product safety officer to sections 33C and 33D that have been relocated from section 47F (which is repealed by clause 27 ). Clause 13 repeals section 35(2), which relates to the ability of regulations to incorporate material by reference. The effect is neutral because the same outcome is achieved by the Legislation Act 2019. Clauses 14 to 25 all amend Part 5 of the Act, which relates to enforcement and remedies. The changes add a civil liability regime to the Act and transition a number of provisions that currently attract criminal liability to the civil regime. The penalties in relation to both types of provision are increased, and a range of other reforms are made. Clause 14 replaces sections 37 to 39, which relate to the jurisdiction of the High Court, the District Court, and the Disputes Tribunal to hear and determine various matters. The changes simplify and modernise the provisions, including incorporating content about monetary limits currently in section 43B (which is replaced by clause 20 ). Clause 15 inserts new sections 40 to 40AC , which provide as follows: new section 40 provides that a contravention of any of the provisions it refers to is an offence, and divides the provisions into 3 categories, each of which result in a different maximum fine (which are set out in new section 40A —existing section 40A, which relates to additional penalties for certain contraventions of section 24, is repealed): new sections 40AB and 40AC relate to the defences that are available for contraventions of offence provisions (both general defences and specific ones). Clause 16 repeals sections 40B to 41. Sections 40B to 40H relate to the infringement offence regime under the Act. Section 41 relates to the availability of injunctions, which is now covered in new sections 41L to 41N . Clause 17 inserts new sections 41A to 41N , which are part of a new civil liability subpart ( new subpart 3 ). New subpart 3 provides for civil remedies for contraventions of a range of provisions in the Act. The provisions for which there is civil liability are set out in new section 41B ( civil liability provisions ). New sections 41C to 41E provide for the High Court to make a declaration of contravention on the application of the Commerce Commission (the Commission ) or any other person. An applicant for compensation or for an order under section 43 may rely on that declaration (they are not required to prove the contravention again in order to obtain compensation or the order under section 43). A declaration of contravention is available only in relation to civil liability provisions. New sections 41F to 41I provide for the High Court to impose a pecuniary penalty order against a person who has contravened, or been involved in a contravention of, a civil liability provision. There are 2 tiers of penalties. Tier 1 provides for a penalty not exceeding the greatest of the consideration for the relevant transaction, 3 times the amount of the gain made or the loss avoided, and $1 million in the case of an individual or $5 million in any other case. Tier 1 covers, for example, engaging (in trade) in conduct that is unconscionable, or making (in trade) false or misleading representations in connection with the supply of goods or services. Tier 2 has maximum penalties of $60,000 for an individual or $200,000 in any other case. Tier 2 covers, for example, failing to inform the recipient of unsolicited goods of their rights and obligations, or supplying goods or services in breach of a consumer information standard. In determining an appropriate pecuniary penalty, the court must have regard to all relevant matters. For example, the nature and extent of the relevant conduct and of the loss or damage caused by that conduct. New sections 41J and 41K provide for the court (or the Disputes Tribunal) to order compensation for a contravention of a civil liability provision or a provision referred to in new section 40 (a criminal liability provision ). New sections 41L to 41N provide for the court to grant injunctions that restrain a person from contravening a civil liability provision or a criminal liability provision, attempting to contravene such a provision, or a range of related conduct (such as procuring another person to contravene a provision). Clause 18 updates a cross-reference. Clause 19 amends section 43, which relates to orders that the court can make in addition to the other orders available under Part 5. The amendments— update section 43 to reflect that it now forms part of the civil liability subpart (although orders made under it will still be available in relation to contraventions of criminal liability provisions as well): repeal the paragraphs in section 43 that provide for compensatory orders, as the ability to make those orders is now covered in new sections 41J and 41K . Clause 20 replaces sections 43A and 43B with new sections 43A to 43N . The content of existing section 43A, which relates to the time limit for proceedings under section 43 to be commenced, is now included in new section 43M. The content of existing section 43B, which relates to limits on jurisdiction of the District Court and Disputes Tribunal, is covered in new sections 38 and 39. New section 43A provides general defences for a person ( A ) in contravention of a civil liability provision if— the contravention was due to reasonable reliance on information supplied by another person; or the contravention was due to the act or default of another person, or to an accident, and A took reasonable precautions and exercised due diligence to avoid the contravention. New section 43B provides a defence for a person ( A ) in contravention of certain provisions because of a statement that is false or misleading (or likely to mislead) if A made all inquiries that were reasonable in the circumstances and believed on reasonable grounds that the statement was not false or misleading. New section 43C provides additional defences for a person ( A ) in contravention of section 19 because of a failure to offer goods or services to a person in accordance with that section (which relates to bait advertising). It will be a defence if A proves that— A offered to supply goods or services of the kind advertised to the customer (or to arrange for another person to do so), within in a reasonable time, in a reasonable quantity, and at the advertised price (and did supply them, if the customer accepted); or A offered to supply goods or services equivalent to the kind advertised to the customer (or to arrange for another person to do so), in a reasonable quantity and at the price at which the original goods or services were advertised (and did supply them, if the customer accepted). New section 43D provides an additional defence for a person ( A ) in contravention of section 28 because of a failure to comply with a consumer information standard. It will be a defence if A proves that— the relevant goods were acquired for the purpose of resupply from a person in the business of supplying those goods; and A did not know (and could not reasonably have found out) about the failure to comply with the standard, or that A relied in good faith on a representation from the person who supplied the goods that no standard had been prescribed in relation to the goods. New section 43E provides an additional defence for a person ( A ) in contravention of a civil liability provision that was committed by the publication of an advertisement. It will be a defence if A proves that— A is in the business of publishing advertisements; and A received the advertisement in the ordinary course of that business and did not know (or have reason to suspect) that its publication would constitute a contravention of any provision of the Act. New section 43F provides that conduct must still be treated as contravening a civil liability provision even if a defence was available. New section 43G provides for general defences for a person ( B ) who is involved in a contravention of a civil liability provision. It will be a defence if B proves that— B’s involvement was due to reasonable reliance on information from another person; or B took all reasonable steps to ensure that the person who contravened the provision (which led to B being involved in the contravention) would comply with the provision. New section 43H provides that a person relying on defences that relate to the actions of another person must identify the other person in order for the defence to be available. New sections 43I to 43L provide that— the court may grant more than 1 civil liability remedy in relation to the same conduct; and a person may not be liable for more than 1 pecuniary penalty order for the same conduct; and for multiple contraventions of the same or similar nature that occurred at or about the same time, the total pecuniary penalty amount must not exceed the maximum penalty for one contravention; and a person may not be liable for both a pecuniary penalty order and a fine for the same conduct. New section 43M requires a proceeding under new subpart 3 of Part 5 to be commenced within 3 years after the relevant conduct was discovered or ought reasonably to have been discovered (and no later than 10 years after the relevant conduct occurred). New section 43N provides for the rules of civil procedure and evidence to apply (including the standard of proof). Clause 21 repeals sections 44 to 46. Clause 22 inserts a new subpart heading. Clause 23 amends section 46C, which relates to management banning orders, a further remedy available under Part 5. The amendments reflect that banning orders will now be available in relation to contraventions of civil liability provisions (as well as criminal liability provisions, as is the case currently). Clause 24 replaces section 46E. The effect is to shift the maximum fine for a failure to comply with a management banning order to new section 40A (which increases it from $60,000 to $200,000). Clause 25 inserts new sections 46N to 46P , which together comprise new subpart 5 of Part 5 . New section 46N provides for a definition of the term involved in a contravention. New section 46O specifies when the state of mind of directors, employees, or agents may be attributed to the body corporate or other principal. New section 46P specifies when the conduct of directors, employees, or agents may be attributed to the body corporate or another principal. Clause 26 amends section 47, which relates to the search powers of the Commission. The effect of the changes is— to enable the Commission to obtain a warrant in relation to involvements in a contravention (as well as contraventions, as is the case currently); and to provide that no person may resist, obstruct, or delay a person acting in reliance on a warrant. That prohibition had previously been included in section 47F (repealed by clause 27 ). The maximum penalty for the related offence has shifted to new section 40A (which increases it from $10,000 for an individual and $30,000 for a body corporate, to $60,000 for an individual and $200,000 in any other case). Clause 27 repeals section 47F. The maximum fines for offences are now set out in new section 40A . Clause 28 amends section 47G, which relates to the ability of the Commission to require a person to supply information or documents, or to give evidence. The changes add a prohibition on providing false or misleading information or documents, which had previously been located in section 47J (repealed by clause 29 ). Clause 29 repeals section 47J. The maximum fines for offences are now set out in new section 40A . Clause 30 amends section 47L, which relates to the powers of authorised employees of the Commission. The main change is to provide that no person may resist, obstruct, or delay a person exercising a power under the section. That prohibition had previously been included in section 47F (repealed by clause 27 ). The maximum penalty for the related offence has shifted to new section 40A (which increases it from $10,000 for an individual and $30,000 for a body corporate, to $60,000 for an individual and $200,000 in any other case). Clause 31 amends section 48P to make a consequential amendment reflecting that under the Bill, the provisions referred to in that section will no longer be criminal liability provisions but civil liabilitiy provisions. Clause 32 repeals section 48Q, the content of which is now included in new section 43L . Clause 33 adds new section 48U , which creates a defence against civil liability for online service providers who take action to disrupt suspected scam activity. The defence is available if— the provider has reasonable grounds to believe that their service is being used to carry out a scam; and they take action to disrupt the suspected scam activity within 28 days of first having those grounds; and the action is taken in good faith and is reasonably proportionate to the activity; and the provider reverses the action promptly if they no longer have reasonable grounds to believe that the activity is a scam and reversal is reasonably practicable. Clause 34 amends section 51, which relates to the Conformity Cooperation Agreement between the Government of New Zealand the Government of the People’s Republic of China, which forms part of the Free Trade Agreement between the two nations. The changes reflect that the provisions referred to in section 51 will now be civil liability provisions under the Act. Clause 35 adds new clauses 4, 5, and 6 to Schedule 1AA of the Act, which is the transitional, savings, and related provisions schedule. New clause 5 of Schedule 1AA provides that the usual consultation requirements in the Legislation Act 2019, in relation to incorporating material by reference in secondary legislation, do not apply in relation to product safety standards if the material to be incorporated is the same as material that was already incorporated before the Bill was enacted. New clause 6 of Schedule 1AA provides that if an individual has been found to have committed an offence under the Act, that offence is relevant to whether a management banning order can be made against them, even if the conduct would no longer be an offence under the Act as amended by this Bill. RELATED AMENDMENTS TO OTHER LEGISLATION Part 2 makes various related amendments to Acts ( subpart 1 ) and secondary legislation ( subpart 2 ). Subpart 3 revokes the Fair Trading (Infringement Offences) Regulations 2014. AMENDMENTS TO ACTS Clauses 37 to 39 amend the Auctioneers Act 2013 as follows: clauses 37 , 39 , and Schedule 2 insert new section 4A and new Schedule 1AA , which provide for transitional and savings matters related to offences that are relevant to section 6 of that Act: clause 38 amends section 6, which outlines when a person is disqualified from registering as an auctioneer. These amendments insert reference to the new civil liability regime. Clauses 40 to 45 amend section 43(4) of the Consumer Guarantees Act 1993, section 135(2) the Credit Contracts and Consumer Finance Act 2003, and section 143(2) of the Customer and Product Data Act 2025 to update wording to reflect the transition of some provisions in the Fair Trading Act 1986 from criminal to civil liability. Clauses 46 and 47 amend section 23(3) of the Harmful Digital Communications Act 2015 to include a reference to new section 48U (defence against civil liability for action taken by online service providers to disrupt scams). Clauses 48 and 49 replace section 16(a) of the Immigration Advisers Licensing Act 2007 to include contravening a civil liability provision as a reason to restrict a person from being licensed to provide immigration advice under that Act. Clauses 50 and 51 amend section 23(2) of the Lawyers and Conveyancers Act 2006 to update a cross-reference to new section 46P , which replaces section 45. Clauses 52 to 57 amend the Motor Vehicle Sales Act 2003 as follows: clauses 53 and 54 amend sections 24 and 68 to reflect the changes that make some provisions civil liability provisions while others remain as offence provisions: clause 55 amends section 69(1)(a)(i) to include contravening a civil liability provision as a reason to ban a person from participating in motor vehicle training: clause 56 amends section 89 (jurisdiction of Disputes Tribunal) to update a cross-reference and to insert reference to compensation orders under new sections 41J and 41K : clause 57 and Schedule 3 insert new Part 2 into Schedule 1AA to provide for transitional and savings matters related to offences that are relevant to sections 24 and 68 of that Act. Clauses 59 to 62 amend the Private Security Personnel and Private Investigators Act 2010 as follows: clauses 59 , 62 , and Schedule 4 insert new section 20A and new Schedule 1AA , which provide for transitional and savings matters related to offences that are relevant to sections 62 and 63 of that Act: clauses 60 and 61 amend sections 62 and 63, which set out grounds for disqualification from a licence for an individual and a company, respectively. These amendments make adjustments to reflect the changes between provisions that are remaining as offence provisions and those that are becoming civil liability provisions. Clauses 64 to 66 amend the Real Estate Agents Act 2008 as follows: clauses 64 , 66 , and Schedule 5 insert new section 4A and new Schedule 1AA , which provide for transitional and savings matters related to offences that are relevant to section 37 of that Act: clause 65 amends section 37, which describes persons who are prohibited from being licensed under the Act. These amendments make adjustments to reflect changes to provisions that remain as offence provisions and to those that will become civil liability provisions. Clauses 68 and 69 amend sections 10 and 22 of the Secondhand Dealers and Pawnbrokers Act 2004 to insert reference to contravening civil liability provisions. Sections 10 and 22 relate to the grounds for disqualification for holding a licence or a certificate (respectively). Clause 71 repeals paragraph (fb) of the definition of infringement notice in the Summary Proceedings Act 1957. This removes reference to section 40D of the Act, which is repealed by clause 16 . AMENDMENTS TO SECONDARY LEGISLATION Clause 73 revokes regulation 13(4) of the Energy Efficiency (Energy Using Products) Regulations 2002. Regulation 13(4) provides that it is an offence under the Fair Trading Act 1986 to contravene regulation 8(2)(b). Clause 75 inserts new clause 3(3)(ba) into Schedule 2 of the Real Estate Agents (Exemptions) Regulations 2017 to include contravening a civil liability provision as a reason for a registered member to be ineligible for an exemption under those regulations. Clause 77 replaces form 5 in Schedule 2 of the Real Estate Agents (Licensing) Regulations 2009. The changes to the form reflect that some provisions are remaining as offence provisions under the Fair Trading Act 1986 while other are becoming civil liability provisions. New form 5 require an applicant to declare that they have committed no offence under or contravened specified provisions in the Act. Clause 79 amends the Schedule in the Summary Proceedings (Orders of Reparation) Order 2011 to update a cross-reference to new section 41K . The result of this amendment is that an order made under that section is an order of reparation for the purposes of Part 3 of the Summary Proceedings Act 1957. REVOCATIONS Clause 81 repeals the Fair Trading (infringement Offences) Regulations 2014 consequential to the repeal of its empowering provision, section 40H ( see clause 16 ). The Parliament of New Zealand enacts as follows: 1 Title This Act is the Fair Trading Amendment Act 2026 . 2 Commencement This Act comes into force 6 months after Royal assent, with some exceptions. The following provisions come into force on the day after Royal assent: a section 4(2)(d) : b section 8 : c section 9 : d section 10 : e section 13 : f section 33 : g section 35 (for the purposes of clauses 4 and 5 of Schedule 1AA ): h sections 46 and 47 . 3 Principal Act This Act amends the Fair Trading Act 1986. 4 Section 2 amended (Interpretation) In section 2(1), insert in their appropriate alphabetical order: civil liability order has the meaning set out in section 41A civil liability provision means any provision referred to in section 41B involved in a contravention has the meaning set out in section 46N product safety notice means a notice made under section 29A resupply , in relation to goods,— a means the supply of goods by a person who acquired them for the purpose of supplying them to another person; and b includes the supply— i of the goods in an altered form or condition to that in which the person acquired them; and ii of other goods in which the goods have been incorporated tier 1 civil liability provision means any provision referred to in section 41B(1) tier 2 civil liability provision means any provision referred to in section 41B(2) In section 2(1), repeal the definitions of the following terms: a infringement fee : b infringement notice : c infringement offence : d official standard . Repeal section 2(3)(e). 5 Section 5D amended (No contracting out: exception for parties in trade) In section 5D(1)(b), replace section 43 with section 41F, 41J , or 43 . Replace section 5D(5)(a) with: a prevents the Commission from bringing proceedings against a party to the agreement referred to in subsection (1) for— i an offence under this Act; or ii a contravention, or involvement in a contravention, of a civil liability provision (including in relation to any of sections 12A, 13, or 14(1)): 6 Section 12B amended (Court must have regard to certain matters) In section 12B(2) replace section 44 with section 43A . 7 Section 19 amended (Bait advertising) Repeal section 19(3). 8 Section 27 amended (Consumer information standards) Repeal section 27(2). 9 Section 29 amended (Product safety standards) Replace section 29(1) and (2) with: 1 The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: a prescribing, for the purpose of preventing or reducing the risk of injury to any person, 1 or more product safety standards relating to all or any of the following matters: i the performance, composition, contents, manufacture, processing, design, construction, finish, or packaging of any goods or any class or classes of goods: ii the testing of any goods, or any class or classes of goods, during or after manufacture or processing: iii the form and content of markings, warnings, or instructions to accompany any goods or any class or classes of goods: b authorising the chief executive to prescribe, by product safety notice, any of the matters in paragraph (a) (provided that the regulations specify the goods, or class or classes of goods, to which the product safety notice will relate). 2 The Minister must, before making a recommendation for regulations under subsection (1)(b) , be satisfied that the subject matter is appropriate to be dealt with in a product safety notice rather than being dealt with in the regulation itself. 10 New section 29A inserted (Chief executive may make product safety notice) After section 29, insert: 29A Chief executive may make product safety notice 1 The chief executive may make a product safety notice for the purpose of regulations made under section 29(1)(b) . 2 A regulation that provides for a product safety notice may provide for any requirements in relation to the notice or its creation. 3 A reference to anything being done under regulations made under this Act includes anything done under a product safety notice. 4 A product safety notice has effect only to the extent that a regulation refers to it. 5 A breach of a product safety notice is a breach of the regulation that provides for the notice. 6 If a regulation provides for a product safety notice,— a a product safety notice made under the regulation is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements); and b the regulation must contain a statement to that effect. 11 Section 33C amended (Powers of product safety officers) After section 33C(6), insert: 7 No person may resist, obstruct, or delay any product safety officer exercising a power under this section. 12 Section 33D amended (Suspension of supply notices) After section 33D(5), insert: 6 No person may resist, obstruct, or delay any product safety officer exercising a power under this section. 13 Section 35 amended (Safety standards in respect of services) Repeal section 35(2). 14 Sections 37 to 39 and cross-heading replaced Replace sections 37 to 39 and the cross-heading above section 37 with: 1 Jurisdiction 37 Jurisdiction of High Court 1 The High Court may hear and determine the following matters: a applications for orders, or for a court to exercise any other power, under any provision of this Part: b appeals arising from any proceeding in the District Court under this Part. 2 See also section 100A of the Commerce Act 1986 , under which the Commission may state a case for the opinion of the High Court on any question of law arising in any matter before it under this Act. 2025 No 14 s 92 38 Jurisdiction of District Court The District Court may hear and determine the following matters: a proceedings for offences under section 40 : b applications for orders, or for a court to exercise any other power, under any of the provisions of this Part (other than sections 41C and 41F ) if— i the amount claimed does not exceed $350,000; or ii no amount is claimed; or iii the occasion for the making of the order or the exercise of the power arises in the course of civil proceedings properly before the court; or iv the parties consent, under section 81 of the District Court Act 2016 , to the District Court having jurisdiction to hear and determine the application. 2025 No 14 s 93 39 Jurisdiction of Disputes Tribunal 1 The Disputes Tribunal established under section 4 of the Disputes Tribunal Act 1988 may hear and determine applications for orders to pay compensation under sections 41J and 41K , or for orders under section 43, if the amount claimed does not exceed $60,000. 2 An order of the Disputes Tribunal under this Act must not— a require a person to pay an amount exceeding $60,000; or b declare a person not liable to another person for an amount exceeding $60,000. 3 An order of the Tribunal that exceeds any restriction specified in subsection (2) is entirely of no effect. 2025 No 14 s 94 15 Sections 40 and 40A and cross-heading replaced Replace sections 40 and 40A and the cross-heading above section 40 with: 2 Offences 40 Contraventions of certain provisions an offence 1 A person who contravenes any of the following provisions commits an offence and is liable on conviction to the fine described in section 40A(1) : a section 21(a) or (b) (demanding or accepting payment without intending to supply as ordered): b section 21C (prohibition on asserting right to payment in respect of unsolicited goods or unsolicited services): c section 24 (pyramid selling schemes): d section 30 (compliance with product safety standards): e section 31 (unsafe goods): f section 32 (compulsory product recall): g section 33D(4) (suspension of supply notices): h section 36 (compliance with services safety standards). 2 A person who contravenes section 46E commits an offence and is liable on conviction to the fine set out in section 40A(2) . 3 A person who contravenes any of the following provisions commits an offence and is liable on conviction to the fine set out in section 40A(3) : a section 33C(7) (powers of product safety officers): b section 33D(6) (suspension of supply notices): c section 36RA (directions to leave premises or not enter premises): d section 47(5) (power to search): e section 47G (commission may require person to supply information or documents or give evidence): f section 47L(8) (powers of authorised employees). 4 If a person is convicted, whether in the same or separate proceedings, of 2 or more offences in respect of contraventions of the same provisions of this Act, and those contraventions are of the same or a substantially similar nature, and occurred at or about the same time, the aggregate amount of any fines imposed on that person in respect of those convictions must not exceed the amount of the maximum fine that may be imposed in respect of a conviction for a single offence. 40A Maximum fines for offence provisions 1 The maximum amount of a fine for a contravention of a provision referred to in section 40(1) is the greatest of— a the consideration for the transaction that constituted the contravention (if any); and b if it can be readily ascertained, 3 times the amount of the gain made, or the loss avoided, by the person who contravened the provision; and c $1 million in the case of a contravention by an individual, or $5 million in any other case. 2 The maximum amount of a fine for a contravention of a provision referred to in section 40(2) is $200,000. 3 The maximum amount of a fine for a contravention of a provision referred to in section 40(3) is— a $60,000, in the case of a contravention by an individual; and b $200,000, in any other case. 40AB Defences General defences 1 It is a defence to a prosecution for an offence under section 40 if the defendant proves— a that the contravention was due to a reasonable mistake; or b that the contravention was due to reasonable reliance on information supplied by another person; or c that— i the contravention was due to the act or default of another person, or to an accident or to some other cause beyond the defendant’s control; and ii the defendant took reasonable precautions and exercised due diligence to avoid the contravention. 2 For the purposes of subsection (1)(b) and (c) , another person does not include— a an employee or an agent of the defendant; or b if the defendant is not an individual, a director, employee, or agent of the defendant. Specific defences 3 In relation to a prosecution for an offence under section 40 for a contravention of section 21C(1), it is a defence if the defendant proves that the defendant reasonably believed that there was a right to payment or other consideration. 4 It is a defence to a prosecution for an offence under section 40 in relation to a contravention that was committed by the publication of an advertisement, if the defendant proves— a that the defendant’s business is publishing or arranging for the publication of advertisements; and b that the defendant— i received the advertisement, or the information contained in the advertisement, in the ordinary course of that business; and ii did not know (and had no reason to suspect) that the publication of the advertisement or the publication of the advertisement containing that information, as the case may be, would constitute a contravention of any provision of this Act. 5 In relation to a prosecution for an offence under section 40 for a contravention of section 36RA, it is a defence if the defendant proves that— a the person who gave the direction under section 36RA(2) or (3), or with whose actual or apparent authority it was given, no longer resided at the premises at the time of the contravening conduct; or b the contravening conduct was with the permission (given after the direction under section 36RA(2) or (3) but before the conduct) of someone who— i resided at the premises; or ii was acting with the actual or apparent authority of someone residing at the premises. 1986 No 121 s 44 40AC Defendant must identify other person 1 A person ( A ) is not, without the leave of the court, entitled to rely on either of the following unless A has complied with subsection (2) : a the defence provided by section 40AB(1)(b) that the contravention was due to reasonable reliance on information supplied by another person: b the defence provided by section 40AB(1)(c) that the contravention was due to the act or default of another person. 2 A must, not later than 7 days before the date on which the hearing of the proceeding commences, serve on the other party to the proceeding a written notice identifying the person who supplied the information, or whose act or default caused the contravention. 2013 No 69 s 504 16 Sections 40B to 41 repealed Repeal sections 40B to 41. 17 New subpart 3 of Part 5 inserted After section 41, insert: 3 Civil liability Overview of civil liability 41A Overview of civil liability 1 The following orders ( civil liability orders ) are available (unless otherwise provided) under this subpart: a a declaration of contravention: b a pecuniary penalty order (on application by the Commission only): c a compensatory order: d an injunction: e an order to disclose information or publish an advertisement under section 42: f other civil liability orders under section 43. 2 This section is a guide only to the general scheme and effect of this subpart. 2013 No 69 s 484 41B What are civil liability provisions 1 The following provisions are tier 1 civil liability provisions : a section 7 (unconscionable conduct): b section 10 (misleading conduct in relation to goods): c section 11 (misleading conduct in relation to services): d section 12 (misleading conduct in relation to employment): e section 12A (unsubstantiated representations): f section 13 (false or misleading representations): g section 14(1) (false representations and other misleading conduct in relation to land): h section 16 (certain conduct in relation to trade marks prohibited): i section 17 (offering gifts and prizes): j section 19 (bait advertising): k section 20 (referral selling): l section 21(c) (demanding or accepting payment without intending to supply as ordered): m section 22 (misleading representations about certain business activities): n section 26A (unfair contract terms in standard form consumer contracts): o section 26B (unfair contract terms in standard form trade contracts): p section 31A (voluntary product recall). 2 The following provisions are tier 2 civil liability provisions : a section 21A(2) (liability of recipient of unsolicited goods): b section 28 (compliance with consumer information standards): c section 28A(4) (regulations relating to disclosure by fund-raisers making requests for charitable purposes): d section 28B(2) or (3) (disclosure of trader status on Internet): e section 36C (disclosure requirements relating to layby sale agreement): f section 36D (further disclosure if requested by consumer): g section 36F (cancellation of layby sale agreement by consumer): h section 36G (cancellation of layby sale agreement by supplier): i section 36H (effect of cancellation of layby sale agreement): j section 36L (disclosure requirements relating to uninvited direct sale agreements): k section 36M (cancellation of uninvited direct sale agreement by consumer): l section 36O (effect of cancellation of uninvited direct sale agreement): m section 36P (supplier’s obligations on cancellation of uninvited direct sale agreement): n section 36Q (consumer’s obligations on cancellation of uninvited direct sale agreement): o section 36U (disclosure requirements relating to extended warranty agreements): p section 36V (cancellation of extended warranty agreement): q section 36WB (gift card expiry date must be not less than 3 years): r section 36WC (expiry date must appear prominently on gift card): s section 36ZB (notice to participants): t section 36ZD (vendor bids): u section 36ZF (account and payment of proceeds). 2013 No 69 s 485 Declarations of contravention and pecuniary penalty orders 41C When High Court may make declarations of contravention 1 The High Court may, on the application of the Commission or any other person, make a declaration of contravention if it is satisfied that a person has— a contravened a civil liability provision; or b been involved in a contravention of a civil liability provision. 2 The court may also make a declaration of contravention under section 41F(2)(b) . 2013 No 69 s 486 41D Purpose and effect of declarations of contravention 1 The purpose of a declaration of contravention is to enable an applicant for a compensatory order or other civil liability order under section 43 to rely on the declaration of contravention in the proceedings for that order, and not be required to prove the contravention or involvement in the contravention. 2 Accordingly, a declaration of contravention is conclusive evidence of the matters that must be stated in it under section 41E . 2013 No 69 s 487 41E What declarations of contravention must state A declaration of contravention must state the following: a the civil liability provision to which the contravention or involvement in the contravention relates; and b the person who engaged in the contravention or was involved in the contravention; and c the conduct that constituted the contravention or the involvement in the contravention and, if a transaction constituted the contravention, the transaction. 2013 No 69 s 488 41F When High Court may make pecuniary penalty orders 1 The Commission may apply for a pecuniary penalty order against a person under this Act. 2 If the Commission applies for a pecuniary penalty order against a person under this Act, the High Court— a must determine whether the person has contravened, or been involved in a contravention of, a civil liability provision; and b must make a declaration of contravention if it is satisfied that the person has contravened, or been involved in a contravention of, a civil liability provision; and c may order the person to pay to the Crown a pecuniary penalty that the court considers appropriate if it is satisfied that the person has contravened, or been involved in a contravention of, a civil liability provision. 3 However, a pecuniary penalty order may not be made for a contravention, or involvement in a contravention, of section 9. 2013 No 69 s 489 41G Maximum amount of pecuniary penalty 1 The maximum amount of a pecuniary penalty for a contravention, or involvement in a contravention, of a tier 1 civil liability provision is the greatest of— a the consideration for the transaction that constituted the contravention (if any); and b if it can be readily ascertained, 3 times the amount of the gain made, or the loss avoided, by the person who contravened the civil liability provision; and c $1 million in the case of a contravention, or involvement in a contravention by an individual, or $5 million in any other case. 2 The maximum amount of a pecuniary penalty for a contravention, or involvement in a contravention, of a tier 2 civil liability provision is— a $60,000 in the case of a contravention, or involvement in a contravention, by an individual; or b $200,000 in any other case. 2013 No 69 s 490 41H Considerations for court in determining pecuniary penalty In determining an appropriate pecuniary penalty, the court must have regard to all relevant matters, including— a the purpose stated in section 1A; and b the nature and extent of the contravention or involvement in the contravention; and c the nature and extent of any loss or damage suffered by any person, or gains made or losses avoided by the person in contravention or who was involved in the contravention, because of the contravention or involvement in the contravention; and d whether a person has paid an amount of compensation, reparation, or restitution, or taken other steps to avoid or mitigate any actual or potential adverse effects of the contravention; and e the circumstances in which the contravention, or involvement in the contravention, took place; and f whether the person in contravention, or who was involved in the contravention, has previously been found by the court in proceedings under this Act, or any other enactment, to have engaged in any similar conduct; and g the relationship of the parties to the transaction constituting the contravention. 2013 No 69 s 492 41I Court must order that recovery from pecuniary penalty be applied to Commission's actual costs If the court orders that a person pay a pecuniary penalty, the court must also order that the penalty must be applied first to pay the Commission's actual costs in bringing the proceedings. 2013 No 69 s 493 Compensatory orders 41J When court or Disputes Tribunal may make compensatory orders 1 The court or the Disputes Tribunal may, in proceedings under this subpart or on application by the Commission or any other person, make a compensatory order if the court or the Disputes Tribunal is satisfied that— a there is a contravention of a civil liability provision or a provision referred to in section 40 ; and b a person (the aggrieved person ) has suffered, or is likely to suffer, loss or damage because of the contravention; and c in the case of the District Court or the Disputes Tribunal, the amount of compensation is within the jurisdiction of the District Court or Disputes Tribunal (as the case requires) to order. 2 The court or the Disputes Tribunal may make a compensatory order whether or not the aggrieved person is a party to the proceedings. 3 If the court or the Disputes Tribunal makes a compensatory order under this section, the same loss or damage cannot be the subject of an order of reparation under the Sentencing Act 2002 . 4 If the court orders reparation to be paid under the Sentencing Act 2002 following conviction of a person for a contravention of a provision referred to in section 40 , the court or Disputes Tribunal may not make a compensatory order under this section in respect of the same loss or damage that is the subject of that order of reparation. 2013 No 69 s 494 ; 2015 No 70 s 97(2), (3) 41K Terms of compensatory orders 1 If section 41J applies, the court or the Disputes Tribunal may make any order it thinks just to compensate an aggrieved person in whole or in part for the loss or damage, or to prevent or reduce the loss or damage, referred to in that section. 2 An order under this section may include an order to direct a relevant person to pay to the aggrieved person the amount of the loss or damage (in whole or in part). 3 Subsection (2) does not limit subsection (1) . 4 In this section, relevant person means— a any person in contravention; or b any person who— i has aided, abetted, counselled, or procured the contravention; or ii has induced, whether by threats or promises or otherwise, the contravention; or iii has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention; or iv has conspired with others to effect the contravention. 2013 No 69 s 495 Injunctions 41L Court may grant injunctions 1 The court may, on the application of the Commission or any other person, grant an injunction restraining a person from engaging in conduct that constitutes or would constitute any of the following: a a contravention of a civil liability provision or a provision referred to in section 40 : b any attempt to contravene such a provision: c aiding, abetting, counselling, or procuring any other person to contravene such a provision: d inducing, or attempting to induce, any other person, whether by threats, promises or otherwise, to contravene such a provision: e being in any way directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of such a provision: f conspiring with any other person to contravene such a provision. 2 The court may at any time rescind or vary an injunction granted under this section. 1986 No 121 s 41(1), (2) 41M When court may grant injunctions 1 The court may grant an injunction restraining a person from engaging in conduct of a particular kind if— a it is satisfied that the person has engaged in conduct of that kind; or b it appears to the court that, if an injunction is not granted, it is likely that the person will engage in conduct of that kind. 2 The court may grant an interim injunction restraining a person from engaging in conduct of a particular kind if in its opinion it is desirable to do so. 3 Subsections (1)(a) and (2) apply whether or not it appears to the court that the person intends to engage again, or to continue to engage, in conduct of that kind. 4 Subsections (1)(b) and (2) apply whether or not— a the person has previously engaged in conduct of that kind; or b there is an imminent danger of substantial damage to any other person if that person engages in conduct of that kind. 1986 No 121 s 41(3), (4) ; 2025 No 14 s 81 41N Commission’s undertaking as to damages not required 1 If the Commission applies to the court for the grant of an interim injunction under this subpart, the court must not, as a condition of granting an interim injunction, require the Commission to give an undertaking as to damages. 2 In determining the Commission’s application for the grant of an interim injunction, the court must not take into account that the Commission is not required to give an undertaking as to damages. 1986 No 121 s 41(5), (6) ; 2025 No 14 s 83 Other orders 18 Section 42 amended (Order to disclose information or publish advertisement) In section 42(2), replace under any of sections 40, 40A, 41, or 43 with under section 40 or this subpart . 19 Section 43 amended (Other orders) In the heading to section 43, after Other , insert civil liability . Repeal section 43(3)(e) to (h). 20 Sections 43A and 43B replaced Replace sections 43A and 43B with: Defences for person in contravention of civil liability provisions 43A General defences for person in contravention 1 In any proceeding under this subpart against a person ( A ) for a contravention of a civil liability provision, it is a defence if A proves that— a A’s contravention was due to reasonable reliance on information supplied by another person; or b both of the following apply: i A’s contravention was due to the act or default of another person, or to an accident or to some other cause beyond A’s control; and ii A took reasonable precautions and exercised due diligence to avoid the contravention. 2 For the purposes of subsection (1)(a) and (b) , another person does not include a director, an employee, or an agent of A. 3 Subsection (1)(b) does not apply to a contravention of section 10, 11, 12, 13, 14, 16, or 22 (but see the defence in section 43B ). 2013 No 69 s 499 43B Disclosure defence for person in contravention In any proceeding under this subpart against a person ( A ) for a contravention of section 10, 11, 12, 13, 14, 16 or 22 because of a statement that is false or misleading or that is likely to mislead, it is a defence if A proves that A— a made all inquiries (if any) that were reasonable in the circumstances; and b after doing so, believed on reasonable grounds that the statement was not false or misleading. 2013 No 69 s 500 43C Additional defences for person in contravention of section 19 1 This section applies to any proceeding under this subpart against a person ( A ) for a contravention of section 19 because of a failure to offer goods or services to a person (the customer ) in accordance with section 19(2). 2 It is a defence if A proves that— a A offered to supply, or to procure another person to supply, goods or services of the kind advertised to the customer, within a reasonable time, in a reasonable quantity, and at the advertised price; and b if the offer was accepted by the customer, A supplied, or procured another person to supply, the goods or services in accordance with the offer. 3 It is a defence if A proves that— a A offered to supply, or to procure another person to supply, within a reasonable time,— i goods or services equivalent to the goods or services that were advertised to the customer (the original goods or services ); and ii in a reasonable quantity and at the price at which the original goods or services were advertised; and b if the offer was accepted by the customer, A supplied, or procured another person to supply, the equivalent goods or services in accordance with the offer. 1986 No 121 s 19(3) 43D Additional defence for person in contravention of section 28 1 This section applies to any proceeding under this subpart against a person ( A ) for a contravention of section 28 because of a failure to comply with a consumer information standard. 2 It is a defence if A proves— a that the goods to which the proceedings relate were acquired by A— i for the purpose of resupply; and ii from a person (not being an agent of a person outside New Zealand) who carried on in New Zealand the business of supplying those goods; and b that A did not know, and could not reasonably have ascertained,— i that the goods did not comply with the consumer information standard or that A had not complied with that standard in relation to the goods (as the case may be); or ii that A relied in good faith on a representation by the person from whom A acquired the goods that a consumer information standard had not been prescribed for those goods. 1986 No 121 s 44(5) 43E Additional defence where contravention involves publication of advertisement 1 This section applies to any proceeding under this subpart against a person ( A ) for a contravention of a civil liability provision that was committed by the publication of an advertisement. 2 It is a defence if A proves— a that A’s business is publishing or arranging for the publication of advertisements; and b that A— i received the advertisement, or the information contained in the advertisement, in the ordinary course of that business; and ii did not know (and had no reason to suspect) that the publication of the advertisement or the publication of the advertisement containing that information, as the case may be, would constitute a contravention of any provision of this Act. 1986 No 121 s 44(4) 43F Conduct still contravenes even if defence is available In this Act, conduct must still be treated as contravening a civil liability provision even if the conduct does not lead to any liability under this subpart because of the availability of a defence. 2013 No 69 s 502 Defences for person involved in contravention of civil liability provisions 43G General defences for person involved in contravention 1 This section applies if— a a person ( A ) contravenes a civil liability provision; and b another person ( B ) is involved in the contravention. 2 In any proceeding under this subpart against B for involvement in the contravention of a civil liability provision, it is a defence if B proves that— a B's involvement in the contravention was due to reasonable reliance on information supplied by another person; or b B took all reasonable steps to ensure that A complied with the provision. 3 For the purposes of subsection (2)(a) , another person does not include a director, an employee, or an agent of B. 4 To avoid doubt, this section applies to an involvement in the contravention of any civil liability provision, including sections 10, 11, 12, 13, 14, 16, and 22. 2013 No 69 s 503 Miscellaneous provisions relating to defences 43H Defendant must identify other person 1 A person ( A ) is not, without the leave of the court, entitled to rely on any of the following unless A has complied with subsection (2) : a the defence provided by section 43A(1)(a) or 43G(2)(a) that the contravention or involvement in the contravention was due to reasonable reliance on information supplied by another person: b the defence provided by section 43A(1)(b) that the contravention was due to the act or default of another person: c the defence provided by section 43D(2) , that the goods were acquired by A for the purpose of resupply from a person who carried on in New Zealand the business of supplying those goods. 2 A must, not later than 7 days before the date on which the hearing of the proceeding commences, serve on the other party to the proceeding a written notice identifying the person who supplied the information, or whose act or default caused the contravention, or who supplied the goods (as the case requires). 2013 No 69 s 504 Relationship between proceedings and orders 43I More than 1 civil liability remedy may be given for same conduct The court may grant a civil liability remedy of one kind against a person even though the court has granted another civil liability remedy of a different kind against the person for the same conduct. Example The court may make a compensatory order and a pecuniary penalty order for the same conduct. 2025 No 14 s 86 43J Only 1 pecuniary penalty order may be imposed for same conduct If conduct by a person constitutes a contravention, or an involvement in the contravention, of 2 or more provisions,— a a proceeding may be brought against that person for the contravention or involvement in the contravention of any 1 or more of the provisions; but b no person is liable to more than 1 pecuniary penalty order for the same conduct. 2025 No 14 s 87 43K Limit on pecuniary penalty for multiple contraventions of same or substantially similar nature 1 This section applies if— a the court finds, whether in the same or separate proceedings, that a person is liable to pay a pecuniary penalty in respect of 2 or more contraventions of the same civil liability provision; and b those contraventions are of the same or a substantially similar nature and occurred at or about the same time. 2 The total amount of any pecuniary penalty imposed on the person in respect of those contraventions must not exceed the amount of the maximum pecuniary penalty that may be imposed in respect of a single contravention. 2025 No 14 s 74 43L No pecuniary penalty and fine for same conduct 1 A person cannot be ordered to pay a pecuniary penalty and be liable for a fine under this Act or any other Act for the same conduct. 2 A person that has, in respect of certain conduct, paid an amount in lieu of a pecuniary penalty under section 46A(1)(b) of the Financial Markets Authority Act 2011 — a is not liable for a fine under this Act for the same conduct; and b cannot be ordered to pay a pecuniary penalty under this Act for the same conduct. 3 In relation to compensatory orders and orders of reparation made under the Sentencing Act 2002 , see section 41J(3) and (4) . 1986 No 121 s 48Q ; 2025 No 14 s 88 Limit on proceedings 43M Limit on proceedings 1 A proceeding under this subpart may be commenced within 3 years after the conduct giving rise to the contravention, or involvement in the contravention, was discovered or ought reasonably to have been discovered. 2 However, no proceeding under this subpart may be commenced 10 years or more after the conduct giving rise to the contravention or involvement in the contravention occurred. 3 In this section, a proceeding includes an application for an order under section 43. 2025 No 14 s 85 General 43N Rules of civil procedure and civil standard of proof apply to civil liability A proceeding under this subpart is a civil proceeding and the usual rules of court and rules of evidence and procedure for civil proceedings apply (including the standard of proof). 2013 No 69 s 509 21 Sections 44 to 46 repealed Repeal sections 44 to 46. 22 New subpart 4 heading in Part 5 inserted In Part 5, before the cross-heading above section 46A, insert: 4 Other remedies 23 Section 46C amended (Management banning orders) Replace section 46C(1)(a) with: a has, on at least 2 separate occasions within a 10-year period, done either or both of the following: i committed an offence against section 40 : ii been a director of, or concerned in the management of, an incorporated or unincorporated body when it committed an offence against section 40 ; or After section 46C(1)(a), insert: b has had a pecuniary penalty order made against them under this Act; or In section 46C(2), replace section 40(1) or (1A) with section 40 , or will continue to contravene or be involved in contraventions of civil liability provisions . 24 Section 46E replaced (Offence to breach management banning order) Replace section 46E with: 46E Management banning order to be complied with Any person against whom a management banning order is made must comply with the terms of the order. 25 New subpart 5 of Part 5 inserted After section 46M, insert: 5 Miscellaneous Accessories and attribution of liability 46N Involvement in contraventions 1 In this Act, a person is involved in a contravention if the person— a has aided, abetted, counselled, or procured the contravention; or b has induced, whether by threats or promises or otherwise, the contravention; or c has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention; or d has conspired with others to effect the contravention. 2 Subsection (1) does not apply to proceedings for offences (but see Part 4 of the Crimes Act 1961 , which relates to parties to the commission of offences). 2013 No 69 s 533 46O State of mind of directors, employees, or agents attributed to body corporate or other principal 1 If, in a proceeding under this Part in respect of any conduct engaged in by a body corporate, being conduct in relation to which any provision of this Act applies, it is necessary to establish the state of mind of the body corporate, it is sufficient to show that a director, employee, or agent of the body corporate, acting within the scope of their actual or apparent authority, had that state of mind. 2 If, in a proceeding under this Part in respect of any conduct engaged in by a person other than a body corporate, being conduct in relation to which any provision of this Act applies, it is necessary to establish the state of mind of the person, it is sufficient to show that an employee or agent of the person, acting within the scope of their actual or apparent authority, had that state of mind. 3 In this Act, state of mind , in relation to a person, includes the knowledge, intention, opinion, belief, or purpose of the person and the person’s reasons for that intention, opinion, belief, or purpose. 2013 No 69 s 535 46P Conduct of directors, employees, or agents attributed to body corporate or other principal 1 Conduct engaged in on behalf of a body corporate by any of the following must be treated, for the purposes of this Part, as having been engaged in also by the body corporate: a a director, employee, or agent of the body corporate, acting within the scope of their actual or apparent authority: b any other person at the direction or with the consent or agreement (whether express or implied) of a director, employee, or agent of the body corporate, given within the scope of the actual or apparent authority of the director, employee, or agent. 2 Conduct engaged in on behalf of a person other than a body corporate ( A ) by any of the following must be treated, for the purposes of this Part, as having been engaged in also by A: a an employee or agent of A acting within the scope of their actual or apparent authority: b any other person at the direction or with the consent or agreement (whether express or implied) either of A or of an employee or agent of A, given within the scope of the actual or apparent authority of the employee or agent. 2013 No 69 s 536 26 Section 47 amended (Power to search) In section 47(2), after a contravention , insert (or involvement in a contravention) in each place. In section 47(4), after a contravention , insert (or involvement in a contravention) in each place. After section 47(4), insert: 5 No person may resist, obstruct, or delay any authorised person acting in reliance on a warrant issued under this section. 27 Section 47F repealed (Offence to resist, obstruct, or delay) Repeal section 47F. 28 Section 47G amended (Commission may require person to supply information or documents or give evidence) In section 47G(4), replace section 47J with this section . After section 47G(5), insert: 5A No person may,— a without reasonable excuse, refuse or fail to comply with a notice issued under this section; or b in purported compliance with the notice, supply information, or supply a document, knowing it to be false or misleading. 29 Section 47J repealed (Offence to contravene section 47G) Repeal section 47J. 30 Section 47L amended (Powers of authorised employees) Repeal section 47L(3)(g). After section 47L(7), insert: 8 No person may resist, obstruct, or delay any authorised employee exercising a power referred to in this section. 31 Section 48P amended (Proceedings relating to financial products or financial services) In section 48P(1)(a), delete or criminal . 32 Section 48Q repealed (No pecuniary penalty and fine for same conduct involving financial products or financial services) Repeal section 48Q. 33 New section 48U inserted (Defence against civil liability for action taken by online service providers to disrupt scams) After section 48T, insert: 48U Defence against civil liability for action taken by online service providers to disrupt scams 1 This section applies if— a a person uses an online service to carry out an activity; and b the provider of the online service has reasonable grounds to believe that the activity is a scam. 2 The provider of the online service is not liable in civil proceedings for any action that they take to disrupt the activity if they prove that the action— a was reasonably proportionate to the nature and scale of the activity; and b was taken in good faith; and c was taken or, in the case of ongoing action, begun— i while the provider had reasonable grounds to believe that the activity was a scam; and ii within 28 days of the provider first having those grounds; and d was promptly reversed if— i the provider ceased to have reasonable grounds to believe that the activity was a scam; and ii it was reasonably practicable to reverse the action. 3 This section does not affect any other right or defence available to the provider in respect of the action (for example, protection under section 24 of the Harmful Digital Communications Act 2015 or the creation, exercise, or taking advantage of any contractual indemnity, immunity, or other term of use). 4 In this section,— digital platform means an Internet-based system that facilitates transactions, content sharing, or other interactions between users of the system (for example, an online marketplace or a social media channel) online service means— a a telecommunications service, as defined in section 5 of the Telecommunications Act 2001 ; or b a website hosting service; or c a digital platform; or d an Internet domain name registration service scam means a scheme to deceive or threaten a person for the purpose of obtaining a financial or other benefit, such as money or personal information, from that person or a person associated with that person use of an Internet domain name registration service includes use by the registrant of a domain name registered by the service website hosting service means the provision of access to a server or other infrastructure for the purpose of enabling— a users of the service to store their websites on the server or infrastructure; and b others to access the websites from it. 34 Section 51 amended (Application of Act to goods that are, or may be, exported to China) Replace section 51(1)(c) with: c sections 10 and 13 are tier 1 civil liability provisions and, as such, a contravention (or involvement in a contravention) of either section may— i attract 1 or more of the civil liability orders referred to in section 41A ; and ii result in a warrant being issued in New Zealand under section 47(2) to search a place in New Zealand if the contravention (or involvement in a contravention) relates to goods that are, or may be, exported from New Zealand for supply to China. 35 Schedule 1AA amended In Schedule 1AA,— a insert the Part set out in Schedule 1 of this Act as the last Part; and b make all necessary consequential amendments. 36 Principal Act Sections 37 to 39 amend the Auctioneers Act 2013. 37 New section 4A inserted (Transitional, savings, and related provisions) After section 4, insert: 4A Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms. 38 Section 6 amended (Disqualification from registration) In section 6(1)(f)(i), delete or subpart 4 of Part 4A . After section 6(1)(f), insert: fa a person who has contravened, or been involved in a contravention of, any of sections 7, 10, 11, 12, 12A, 13, 14(1), 16, 17, 19, 20, 21(c), 22, 26A, 26B, 36ZB, 36ZD, and 36ZF of the Fair Trading Act 1986 within the preceding 5 years; or In section 6(2)(c)(i), delete or subpart 4 of Part 4A . After section 6(2)(c), insert: ca the company has contravened, or been involved in a contravention of, any of sections 7, 10, 11, 12, 12A, 13, 14(1), 16, 17, 19, 20, 21(c), 22, 26A, 26B, 36ZB, 36ZD, and 36ZF of the Fair Trading Act 1986 within the preceding 5 years; or 39 New Schedule 1AA inserted Insert the Schedule 1AA set out in Schedule 2 of this Act as the first schedule to appear after the last section of the principal Act. 40 Principal Act Section 41 amends the Consumer Guarantees Act 1993. 41 Section 43 amended (No contracting out except for business transactions) In section 43(4), replace commits an offence against section 13(i) with contravenes section 13(i) . 42 Principal Act Section 43 amends the Credit Contracts and Consumer Finance Act 2003. 43 Section 135 amended (No contracting out) In section 135(2), replace commits an offence against section 13(i) with contravenes section 13(i) . 44 Principal Act Section 45 amends the Customer and Product Data Act 2025. 45 Section 143 amended (No contracting out) In section 143(2), replace commits an offence against section 13(i) with contravenes section 13(i) . 46 Principal Act Section 47 amends the Harmful Digital Communications Act 2015. 47 Section 23 amended (Liability of online content host for content posted by user) In section 23(3), after the removal of content , insert , protection under section 48U of the Fair Trading Act 1986, . 48 Principal Act Section 49 amends the Immigration Advisers Licensing Act 2007. 49 Section 16 amended (Persons subject to restriction on being licensed) Replace section 16(a) with: a a person who— i has been convicted, whether in New Zealand or in another country, of a crime involving dishonesty, an offence resulting in a term of imprisonment, or an offence against the Fair Trading Act 1986 (or any equivalent law of another country); or ii has contravened, or been involved in a contravention of, any civil liability provision under the Fair Trading Act 1986 (or any equivalent law of another country); or 50 Principal Act Section 51 amends the Lawyers and Conveyancers Act 2006. 51 Section 23 amended (False or misleading representations in relation to supply of legal services) In section 23(2), replace Section 45 with Section 46P . 52 Principal Act Sections 53 to 57 amend the Motor Vehicle Sales Act 2003. 53 Section 24 amended (Persons disqualified from registration: individuals) Replace section 24(k) with: k a person who, within the preceding 5 years,— i has been convicted of an offence against any of sections 21(a) or (b), 21C, or 24 of the Fair Trading Act 1986; or ii has contravened, or been involved in a contravention of, any of sections 17, 19, 20, 21(c), or 22 of the Fair Trading Act 1986; or 54 Section 68 amended (Persons banned from participating in business of motor vehicle trading) Replace section 68(1)(c)(iii) with: iii is convicted of an offence against any of sections 21(a) or (b), 21C, or 24 of the Fair Trading Act 1986; or iiia contravenes, or is involved in a contravention of, any of sections 17, 19, 20, 21(c), or 22 of the Fair Trading Act 1986; or 55 Section 69 amended (Power to ban certain persons from participating in business of motor vehicle trading) In section 69(1)(a)(i), after convicted of a specified offence , insert or has contravened, or been involved in a contravention of, any civil liability provision under the Fair Trading Act 1986 . 56 Section 89 amended (Jurisdiction of Disputes Tribunal) In section 89(1)(b)(ii), replace section 43(2) with section 39 . Replace section 89(2)(c)(ii) with: ii the Disputes Tribunal finds that the buyer has suffered, or is likely to suffer, loss or damage by the conduct of the motor vehicle trader that constitutes, or would constitute, conduct of the kind referred to in section 43(1) of the Fair Trading Act 1986 and the Disputes Tribunal— i makes a compensation order under sections 41J and 41K of that Act; or ii makes an order under section 43(2) of that Act declaring the whole or any part of the contract for sale to be void. 57 Schedule 1AA amended In Schedule 1AA,— a insert the Part set out in Schedule 3 of this Act as the last Part; and b make all necessary consequential amendments. 58 Principal Act Sections 59 to 62 amend the Private Security Personnel and Private Investigators Act 2010. 59 New section 20A inserted (Transitional, savings, and related provisions) After section 20, insert: 20A Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms. 60 Section 62 amended (Grounds of disqualification for individual applicant) After section 62(e), insert: ea has, within the preceding 7 years, contravened or been involved in a contravention of any of sections 10, 11, 12A, 13, 16, 19, or 21(c) of the Fair Trading Act 1986; or Replace section 62(f)(iii) with: iii offence under any of sections 21(a) or (b), 24, 33C(7) , 33D(6) , 47(5) , 47G(5A) , or 47L(8) of the Fair Trading Act 1986; or 61 Section 63 amended (Grounds of disqualification for company) Replace section 63(1)(a)(i) with: i offence under any of sections 21(a) or (b), 24, 33C(7) , 33D(6) , 47(5) , 47G(5A) , or 47L(8) of the Fair Trading Act 1986; or After section 63(1)(a), insert: aa the company has, within the preceding 7 years, contravened or been involved in a contravention of any of sections 10, 11, 12, 12A, 13, 16, 19, or 21(c) of the Fair Trading Act 1986; or 62 New Schedule 1AA inserted Insert the Schedule 1AA set out in Schedule 4 of this Act as the first schedule to appear after the last section of the principal Act. 63 Principal Act Sections 64 to 66 amend the Real Estate Agents Act 2008. 64 New section 4A inserted (Transitional, savings, and related provisions) After section 4, insert: 4A Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms. 65 Section 37 amended (Persons prohibited from being licensed) In section 37(1)(b), replace sections 12A, 14, 17 to 22, or 24 with any of sections 21(a) or (b), 21C, or 24 . After section 37(1)(b), insert: ba a person who has contravened or been involved in a contravention of any of sections 12A, 14, 17, 19, 20, 21A(2), 21(c), or 22 of the Fair Trading Act 1986 within the 5 years preceding the application for a licence: 66 New Schedule 1AA inserted Insert the Schedule 1AA set out in Schedule 5 of this Act as the first schedule to appear after the last section of the principal Act. 67 Principal Act Sections 68 and 69 amend the Secondhand Dealers and Pawnbrokers Act 2004. 68 Section 10 amended (Issue of licence: company applicant) After section 10(3)(a), insert: aa has contravened, or been involved in a contravention of, any civil liability provision under the Fair Trading Act 1986 within the past 5 years; or 69 Section 22 amended (Disqualification from holding certificate) After section 22(b), insert: ba has contravened, or been involved in a contravention of, any civil liability provision under the Fair Trading Act 1986 within the past 5 years; or 70 Principal Act Section 71 amends the Summary Proceedings Act 1957. 71 Section 2 amended (Interpretation) In section 2(1), definition of infringement notice , repeal paragraph (fb). 72 Principal regulations Section 73 amends the Energy Efficiency (Energy Using Products) Regulations 2002. 73 Regulation 13 amended (Offences) Revoke regulation 13(4). 74 Principal regulations Section 75 amends the Real Estate Agents (Exemptions) Regulations 2017. 75 Schedule 2 amended In Schedule 2, after clause 3(3)(b), insert: ba has contravened, or been involved in a contravention of, a civil liability provision under the Fair Trading Act 1986 within the 5 years preceding the application for registration or a renewal of a registration; or 76 Principal regulations Section 77 amends the Real Estate Agents (Licensing) Regulations 2009. 77 Schedule 2 amended In Schedule 2, replace form 5 with the form set out in Schedule 6 of this Act. 78 Principal order Section 79 amends the Summary Proceedings (Orders of Reparation) Order 2011. 79 Schedule amended In the Schedule, item relating to the Fair Trading Act 1986, replace Section 43(3)(f) with Section 41K . 80 Principal regulations Section 81 amends the Fair Trading (Infringement Offences) Regulations 2014. 81 Revocation of Fair Trading (Infringement Offences) Regulations 2014 The Fair Trading (Infringement Offences) Regulations 2014 (LI 2014/229) are revoked. 1 New Part 4 inserted into Schedule 1AA 4 Provisions relating to Fair Trading Amendment Act 2026 4 Interpretation In this Part, 2026 Act means the Fair Trading Amendment Act 2026 . 5 Consultation not required if material to be incorporated by reference is same as in existing regulations 1 This clause applies if,— a after the commencement date,— i regulations are made under section 29; or ii a product safety notice is made under section 29A ; or iii both of paragraphs (i) and (ii) apply; and b the regulations or product safety notice (or both, as the case requires) incorporate material by reference; and c the material incorporated by reference is the same as material that was, immediately before the commencement date, incorporated by reference in regulations made under section 29. 2 Clause 1 of Schedule 2 of the Legislation Act 2019 does not apply in relation to the regulations or product safety notice (or both, as the case requires). 3 In this clause, commencement date means the date on which sections 9 and 10 of the 2026 Act come into force. 6 Availability of management banning orders 1 This clause applies if an individual has done either or both of the following: a committed an offence against old section 40(1) or (1A): b been a director of, or concerned in the management of, an incorporated or unincorporated body when it committed an offence against old section 40(1) or (1A). 2 Each such offence must be treated as an offence for the purpose of determining whether the District Court may make a management banning order against the individual under section 46C, regardless of whether the relevant conduct would constitute an offence under this Act as amended by the 2026 Act. 3 In this clause, old , in relation to a provision of this Act, means the provision as in force immediately before the 2026 Act was enacted. 2 New Schedule 1AA inserted into Auctioneers Act 2013 1AA s 4A Transitional, savings, and related provisions 1 Provisions relating to Fair Trading Amendment Act 2026 1 Fair Trading Act 1986 offences that are relevant to section 6 1 This clause applies if a person has been convicted of an offence against section 40 of the Fair Trading Act 1986, as it read immediately before the commencement of the Fair Trading Amendment Act 2026 . 2 The offence must be treated as an offence for the purpose of determining whether an individual is disqualified from registration under section 6 of this Act, regardless of whether the relevant conduct would constitute an offence under the Fair Trading Act 1986 as amended by the Fair Trading Amendment Act 2026 . 1AA Transitional, savings, and related provisions 3 New Part 2 inserted into Schedule 1AA of Motor Vehicle Sales Act 2003 2 Provisions relating to Fair Trading Amendment Act 2026 2 Fair Trading Act 1986 offences that are relevant to sections 24 and 68 1 This clause applies if a person has been convicted of an offence under the Fair Trading Act 1986, as it read immediately before the commencement of the Fair Trading Amendment Act 2026 . 2 The offence must be treated as an offence for the following purposes, regardless of whether the relevant conduct would constitute an offence under the Fair Trading Act 1986 as amended by the Fair Trading Amendment Act 2026 : a determining whether an individual is disqualified from registration under section 24 of this Act: b determining whether a person is banned from participating in the business of motor vehicle trading under section 68 of this Act. 4 New Schedule 1AA inserted into Private Security Personnel and Private Investigators Act 2010 1AA s 20A Transitional, savings, and related provisions 1 Provisions relating to Fair Trading Amendment Act 2026 1 Fair Trading Act 1986 offences that are relevant to sections 62 and 63 1 This clause applies if a person has been convicted of an offence under the Fair Trading Act 1986, as it read immediately before the commencement of the Fair Trading Amendment Act 2026 . 2 The offence must be treated as an offence for the following purposes, regardless of whether the relevant conduct would constitute an offence under the Fair Trading Act 1986 as amended by the Fair Trading Amendment Act 2026 : a determining whether an individual is disqualified under section 62 of this Act: b determining whether a company is disqualified under section 63 of this Act. 1AA Transitional, savings, and related provisions 5 New Schedule 1AA inserted into Real Estate Agents Act 2008 1AA s 4A Transitional, savings, and related provisions 1 Provisions relating to Fair Trading Amendment Act 2026 1 Fair Trading Act 1986 offences that are relevant to section 37 1 This clause applies if a person has been convicted of an offence under the Fair Trading Act 1986, as it read immediately before the commencement of the Fair Trading Amendment Act 2026 . 2 The offence must be treated as an offence for the purpose of determining whether a person is prohibited from being licensed under section 37 of this Act, regardless of whether the relevant conduct would constitute an offence under the Fair Trading Act 1986 as amended by the Fair Trading Amendment Act 2026 . 1AA Transitional, savings, and related provisions 6 Form 5 in Schedule 2 of Real Estate Agents (Licensing) Regulations 2009 replaced 5 Declaration in support of application by individual for agent’s licence, branch manager’s licence, or salesperson’s licence Section 38 , Real Estate Agents Act 2008 (Important: This document must accompany your application form) Real Estate Agents Authority I, [ name, address ], am the applicant for an agent's/a branch manager's/a salesperson's* licence and I solemnly and sincerely declare that—   *Select one. 1 I have attained the age of 18 years. 2 I hold the prescribed qualifications. [ Strike out paragraph 3 if the application and declaration relate to a salesperson’s licence. ] 3 I have had 3 years’ experience in real estate agency work within the 10 years preceding this application to be licensed as an agent or a branch manager. 4 I have provided the Real Estate Agents Authority with the information necessary for it to advertise my licence application on its Internet site in the prescribed manner. 5 I have not been convicted, whether in New Zealand or another country, of a crime involving dishonesty (or of a crime that, if committed in New Zealand, would be a crime involving dishonesty) within the 10 years preceding this application. 6 I have not been convicted of an offence under section 21(a) or (b), 21C, or 24 of the Fair Trading Act 1986 within the 5 years preceding this application. 7 I have not contravened, or been involved in a contravention of, any of sections 12A, 14(1), 17, 19, 20, 21(c), 21A(2), and 22 of the Fair Trading Act 1986 within the 5 years preceding this application. 8 [ Select the paragraph below that applies. ] There are no unsatisfied judgments against me in any court. or Judgments obtained against me that are still unsatisfied are on the list attached to this declaration. 9 My licence or certificate of approval has not been cancelled within the preceding 5 years and my licence (if applicable) is not suspended. 10 I am not subject to an order made, or a notice given, under the law of a country, State, or territory outside New Zealand within the preceding 5 years that prohibits me from acting as an agent, a branch manager, or a salesperson (or equivalent) in that country, State, or territory. 11 I am not an officer of a licensee company, a chief executive officer of a licensee company, or a branch manager who has been disqualified from holding a licence or whose licence has been suspended under the Real Estate Agents Act 2008 . 12 I am not prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated body under the Companies Act 1993 , the Financial Markets Conduct Act 2013 , or the Takeovers Act 1993 . 13 I am not a lawyer or conveyancing practitioner who is subject to the provisions of the Lawyers and Conveyancers Act 2006 . 14 I am not an undischarged bankrupt nor am I subject to a procedure or an order under subpart 4 of Part 5 of the Insolvency Act 2006 . I also solemnly and sincerely declare that— 15 There are no other circumstances that would or might make me not a fit and proper person to hold a licence. 16 I am the person named in the documents submitted with my application. 17 The documents submitted with the application are complete and correct. I make this solemn declaration conscientiously believing the same to be true and by virtue of the Oaths and Declarations Act 1957 . Signature of person making declaration: This section to be completed by the witness Declared at [ place, date ] Before me: [ name, signature ] Name of witness: [ print name ] (Justice of the Peace/other person authorised to take a statutory declaration*)   *Select one. Note A person who provides misleading or false information in this declaration commits an offence and is liable to a significant penalty.