WORLD TRADE ORGANIZATION 
ORGANISATION MONDIALE DU COMMERCE 
ORGANIZACION MUNDIAL DEL COMERCIO 
Council for Trade-Related Aspects 
of Intellectual Property Rights RESTRICTED­
IP/N/I/NZL/G/2 
26 January 1996 
(96-0203) 
Original: Englishl 
anglaisl 
ingIes 
MAIN DEDICATED INTELLECTUAL PROPERTY LAWS AND REGULATIONS 
NOTIFIED UNDER ARTICLE 63.2 OF THE AGREEMENT 
New Zealand 
Geographical Indications 
The present document reproduces the Fair Trading Act 19861, as notified by New Zealand under 
Article 63.2 of the Agreement (see document IP/N/lINZL/l). 
Conseil des aspects des droits de propriete 
intellectuelle qui touchent au commerce 
PRINCIPALES LOIS ET REGLEMENTATIONS CONSACREES A LA 
PROPRIETE INTELLECTUELLE NOTIFIEES AU TITRE DE 
L' ARTICLE 63:2 DE L' ACCORD 
Nouvelle-Zelande 
Indications geographiques 
Le present document contient le texte de la Loi de 1986 sur les pratiques commerciales loyales 1, notifiee 
par la Nouvelle-Zelande au titre de l'artic1e 63:2 de l'Accord (voir le document IP/N/lINZL/l). 
Consejo de los Aspectos de los Derechos de 
Propiedad Intelectual relacionados con el Comercio 
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA 
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD 
DEL pARRAFO 2 DEL ARTiCULO 63 DEL ACUERDO 
Nueva Zelandia 
Indicaciones geognificas 
En el presente documento se reproduce la Ley de Comercio Leal de 19861, notificada por Nueva Zelandia 
en virtud de 10 dispuesto en el parrafo 2 del articulo 63 del Acuerdo (vease el documento IP/N/lINZL/l). 
lEnglish only langlais seulement/en ingles solamente. IP/N/lINZL/G/2 
Page 2 
1986 Fair Trading No. 121 
ANALYSIS 
Title 
1. Short Title and commencement 
2. Interpretation 
3. Application of Act to conduct olltside New 
Zealand 
4. Application of Act to the Crown 
5. Application of Act to Crown corporations 
6. Functions of Commission in relation lO 
dissemination of infonnation 
7. Money to be appropriated by Parliament 
for purposes of this Act 
8. Annual report 
PART I 
MISLt-.ADlN(; AND DFCEPTIVE CONDUCT. FALSE 
Rf-.PRf-St- NTATIONS. AND UNFAIR PRACTICES 
,\1lJleadmg and Dutptil1e Conduct 
9. M isleading and deceptive conduct 
generally 
10. M islcading conduct in relation to goods 
1 I. Misleading conduct in relation to services 
1 '2. Misleading conduct in relation to 
ernployment 
FaLse RepreJi'ntationJ 
13. False representations 
14. False representations and other mislead­
ing conduct in relation to land 
15. Limited application of sections 9 to 14 of 
this Act to news media 
16. Cenain conduct in relation to trade marks 
prohibited 
ll,z)alr Practices 
17. Offering gifts and prizes 
18. Trading stamp schemes prohibited 
19. Bait advertising 
'20. Rt>ferral selling 
'21. Demanding or accepting payment with 
Ollt intt"Jlding to supply as ordered 
'2'1. Misleading representations about certain 
business activities 
23. Harassment and coercion 
'24. Pyramid selling schelnes 
Public-121 25. Provisions of this Part of this Act not limi· 
ted by reference to other provisions 
of this Part of this Act 
26. Importation of goods bearing false trade 
description or false trademark 
prohibited 
PART 11 
CONSUMER INfORMATION 
27. Consumer infonnation standards 
28. Standards may be declared to be con­
sumer infonnation standards 
PART III 
PRODUCT SAFETY 
29. Product safety standards 
30. Standards may be declared to be product 
safety standards 
31. Unsafe goods 
32. Compulsory product recaH 
33. Importation of certain goods prohibited 
PART IV 
SAfETY Of SERVICES 
34. Meaning of "services" 
35. Safety standards in respect of services 
36. Standards may be declared to be services 
safety standards 
PART V 
ENfORCEMENT AND Rn,tEDIES 
Ju rlJdictlOn cif Courts 
37. Jurisdiction of High Court 
38. Jurisdiction of District Couns 
39. Jurisdiction of Small Claims Tribunals 
Ojjouej 
40. Contravenrions of provisions of Pan I. 
Pan 11. Part Ill. and Part IV an offence 
Pric~ COtk: ..J5-D 2 
CH,lI Proceedlngj Fair Trading IP/N/1/NZL/G/2 
Page 3 
1986, No. 121 
-!6. Finding in proceedings [0 be evidence 
-11. Injunctions may be granted by Court for 
. contravention of Part I. Part 11. Part Ill. 
and Parr IV PART VI 
MISCELLANEOUS PRO\·ISIO~S 
-! '2. Order [0 disclose information or publish 47. Powers to obtain docurnents and IIlspcn 
goods advertisement 
-! :~. Ot her orders 48. Proceedings privileged 
49. Repeals and consequential arnendJnenrs 
-! -!. Defences 
-15. CondllCl by servants or agents 50. Saving of other laws 
Schedules 
1986, No. 121 
An Act to prohibit certain conduct and practices in trade, 
to provide for the disclosure of consulTler infonnation 
relating to the supply of goods and services and to 
prolTlote product safety and also to repeal the ConsulTler 
Information Act 1969 and certain other enactlYlents 
[1 7 December 1986 
BE IT ENACTED by the General Assembly of New Zealand 
in Parliament assembled, and by the authority of the same, as 
follows: 
1. Short Title and cOlYllYlencetnent-(I) This Act may be 
cited as the Fair Trading Act 1 986. 
(2) Except as provided in section 49 (3) of this Act, this Act 
shall come into force on the 1 st day of March 1987. 
2. Interpretation-(J) In this Act, unless the context 
otherwise requires,-
"Acquire",-
(a) In relation to goods, includes obtain by way of 
gift, purchase, or exchange; and also includes take on 
lease, hire, o~ hire purchase: 
(b) In relation to services, includes accept: 
(c) In relation to interests in land, includes obtain 
by way of gift, purchase, exchange, lease or licence 
and "acquisition" has a corresponding meaning: 
"Advertisement" means any form of conununication made 
to the public or a section of the public for the purpose 
of promoting the supply of goods or services or the 
sale or granting of an interest in land: 
"Business" means any undertaking-
(a) That is carried on whether for gain or reward or 
not; or 
(b) In the course of which-
(i) Goods or services are acquired or supplied; or 
(iD Any interest in land is acquired or disposed of-
whether free of charge or not: IP/N/lINZL/G/2 
Page 4 
1986, No. 121 Fair Trading 
"Corrunission" means the Commerce Commission 
established by section 8 of the Commerce Act 1986; 
and includes a Division of the Commission, or a 
member of the Corrunission, perfonning any function 
of the Commission: 
"Court" means the High Court of New Zealand: 
"Credit instrument" means any agreement (whether in 
writing or not) acknowledging an obligation to pay a 
sum or sums of money on demand or at any future 
time or times: 
"Document" means a document in any fonn whether 
signed or initialled or otherwise authenticated by its 
maker or not; and includes-
(a) Any writing on any material: 
(b) Any infonnation recorded or stored by means 
of any tape-recorder, computer, or other device; and 
any material subsequently derived from information 
so recorded or stored: 
(c) Any label, marking, or other writing that 
indentifies or describes any thing of which it forms 
part, or to which it is attached by any means: 
(d) Any book, map, plan, graph, or drawing: 
(e) Any photograph, film, negative, tape, or other 
device in which one or more visual images are 
embodied so as to be capable (with or without the aid 
of some other equipment) of being reproduced: 
"Goods" include-
(a) Ships, aircraft, and vehicles: 
(b) Animals, including fish: 
(c) Minerals, trees, and crops, whether on, under, or 
attached to land or not: 
(d) Gas and electricity: 
"Local authority" includes every local authority and every 
public body or other authority created by or pursuant 
to any public Act or local Act: 
"Minister" means the Minister of Consumer Affairs: 
"Officer of the Commission" means-
(a) Any person appointed pursuant to section 18 (1) 
of the Conunerce Act 1986: 
(b) Any person employed or engaged under section 
18 (2) of the Commerce Act 1 986: 
"Person" includes a local authority, and any association 
of persons whether incorporated or not: 
"Price' includes valuable consideration in any fonn, 
whether direct or indirect; and includes any 4 Fair Trading IP/NIlINZL/G/2 
Page 5 
1986, No. 121 
consideration that in effect relates to the acquisition 
or supply of goods or services or the acquisition or 
disposition of any interest in land, although ostensibly 
relating to any other matter or thing: 
"Services" includes any rights (including rights in relation 
to, and interests in, real or personal property), benefits, 
privileges, or facilities that are or are to be provided, 
granted, or conferred and,. without limiting the 
generality of the foregoing, also includes the rights, 
benefits, privileges, or facilities that are or are to be 
provided, granted, or conferred under any of the 
following classes of contract: 
(a) A contract for, or in relation to,-
(i) The perfonnance of work (including work of a 
professional nature), whether with or 
without the supply of goods; or 
(ii) The provision of, or the use or enjoyment of 
facilities for, accommodation, amusement, 
the care of persons or animals or things, 
entertainment, instruction, parking, or 
recreation; or 
(ill) The conferring of rights, benefits, or privileges 
for which remuneration is payable in the 
form of a royalty, tribute, levy, or similar 
exaction: 
(b) A contract of insurance, including life assurance, 
and life reassurance: 
(c) A contract between a bank and a customer of 
the bank: 
(d) Any contract for, or in relation to, the lending 
of money or granting of credit, or the making of 
arrangements for the lending of money or granting 
of credit, or the buying or discounting of a credit 
instrument, or the acceptance of deposits;-
but does not include rights or benefits in the fonn of 
the supply of goods or the performance of work under 
a contract of service: 
"Supply"-
(a) In relation to goods, includes supply (or resupply) 
by way of gift, sale, exchange, iease, hire, or h.ire 
purchase; and 
(b) In relation to services, includes provide, grant, 
or confer;-
and "supply" as a noun, "supplied", and "supplier" 
have corresponding meanings: IP/N/I/NZL/G/2 
Page 6 
1986, No. 121 Fair Trading 5 
"Trade" Ineans any trade, business, industry, profession, 
occupation, activity of commerce, or undertaking 
relating to the supply or acquisition of goods or 
services or to the disposition or acquisition of any 
interest in land. 
(2) In this Act, a reference to engaging in conduct shall be 
read as a reference to doing or refusing to do an act, and 
includes,-
(a) Omitting to do an act; or 
(b) Making it known that an act will or, as the case may be, 
will not be done. 
(3) In this Act-
(a) A reference to the acquisition of goods includes a reference 
to the acquisition of property in, or rights in relation 
to, goods, in pursuance of a supply of the goods: 
(b) A reference to the supply or acquisition of goods or 
services includes a reference to agreeing to supply or 
acquire goods or services: 
(c) A reference to the supply or acquisition of goods includes 
a reference to the supply or acquisition of goods 
together with other property or services or both: 
(d) A reference to the supply or acquisition of services 
includes a reference to the supply or acquisition of 
servIces together with property or other services or 
both: 
(e) A reference to the resupply of goods acquired from a 
person includes a reference to-
(i) A supply of goods to another person in an 
altered form or condition; and 
(ii) A supply to another person of other goods in 
which the goods have been incorporated. 
8. Application of Act to conduct outside New Zealand­
This Act extends to the engaging in conduct outside New 
Zealand by any person resident or carrying on business in New 
Zealand to the extent that such conduct relates to the supply 
of goods or services, or the granting of interests in land, within 
New Zealand. 
4. Application of Act to the Crown-(l) Subject to this 
section, this Act shall bind the Crown in so far as the Crown 
engages in trade. 
(2) The Crown shall not be liable to be prosecuted for an 
offence against this Act but in any case where it is alleged that 
the Crown has contravened any provision of this Act and that 6 Fair Trading IP/N/l/NZL/G/2 
Page 7 
1986, No. 121 
contravention constitutes an offence, the Commission or the 
person directly affected by the contravention may apply to the 
Court for a declaration that the Crown has contravened that 
provision; and, if the Court is satisfied beyond a reasonable 
doubt that the Crown has contravened that provision, it may 
make a declaration accordingly. 
Cf. 1975, No. 113, s. 20B; 1979, No. 140, s. 12; Trade 
Practices Act 1974 (Aust.), s. 2A 
5. Application of Act to Crown corporations-(I) This Act 
applies to every body corporate that is an instnJment of the 
Crown in respect of the Government of New Zealand engaged 
in trade. 
(2) Notwithstanding any enactment or n..tle of law, 
proceedings under Part V of this Act may be brought against 
a body corporate referred to in subsection (1) of this section. 
C( 1975, No. 113, S.20A; 1979, No. 140, s. 11 
6. Functions of Conunission in relation to dissenllnation 
of infonnation-In addition to the functions conferred on 
the Commission by this Act, the Commission shall-
(a) Make available or co-operate in making available-
(i) For the guidance of persons engaged in trade, 
and other interested persons, general information 
with respect to their rights and obligations under this 
Act; and 
(ii) For the guidance of consumers, general 
information with respect to the rights and obligations 
of persons under this Act affecting the interests of 
consumers; and 
(b) Undertake studies and publish reports and information 
regarding matters affecting the interests of consumers; 
and 
(c) Co-operate with and assist any association or body of 
persons in developing and promoting the observance 
of standards of conduct for the purpose of ensuring 
compliance with the provisions of this Act. 
Cf. Trade Practices Act 1974 (Aust.), s. 28 (1) (a), (d), (e) 
7. Money to be appropriated by ParliaInent for purposes 
of this Act-All fees, salaries, wages, allowances, expenses, 
and other expenditure payable or incurred under or in the 
administration of this Act shall be payable out of money to 
be appropriated by Parliament for the purpose. IP/N/1/NZL/G/2 
Page 8 
1986, No. 121. Fair Trading 7 
8. Annual report-(I) As soon as practicable after the 31st 
day of March in each year, the Commission shall furnish to 
the Minister a report of its operations under this Act during 
the 12 months preceding that date. 
(2) A copy of the report shall be laid before Parliament. 
PART I 
MISLEADING AND DECEPTIVE CONDUCT, FALSE 
REPRESENTATIONS, AND UNFAIR PRACTICES 
M is leading and Deceptive Conduct 
9. Misleading and deceptive conduct generally-No 
person shall, in trade, engage in conduct that is misleading or 
deceptive or is likely to mislead or deceive. 
Cf. Trade Practices Act 1974 (Aust.), s. 52 
10. Misleading conduct in relation to goods-No person 
shall, in trade, engage in conduct that is liable to mislead the 
public as to the nature, manufacturing process, characteristics, 
suitability for a purpose, or quantity of goods. 
Cr. Trade Practices Act 1974 (Aust.), s. 55 
11. Misleading conduct in relation to services--=- No person 
shall, in trade, engage in conduct that is liable to mislead the 
public as to the nature, characteristics, suitability for a purpose, 
or quantity of services. 
Cr. Trade Practices Act 1 974 (Aust.), s. 55A 
12. Misleading conduct in relation to ernploytnent-No 
person shall, in relation to employment that is, or is to be, or 
may be offered by that person or any other person, engage 
in conduct that is misleading or deceptive, or is likely to mislead 
or deceive, as to the availability, nature, tenns or conditions, 
or any other matter relating to that employment. 
Cf. Trade Practices Act 1974 (Aust.), s. 53B 
False Representations 
IS. False representations-No person shall, in trade, in 
connection with the supply or possible supply of goods or 
services or with the promotion by any means of the supply 
or use of goods or services,-
(a) Falsely represent that goods are of a particular kind, 
standard, quality, grade, quantity, composition, style, 
or model, or have had a particular history or 
particular previous use; or 8 Fair Trading IP/N/1/NZL/G/2 
Page 9 
1986, No. 121 
(b) Falsely represent that services are of a particular kind, 
standard, quality, or quantity, or that they are 
supplied by any particular person or by any person 
of a particular trade, qualification, or skill; or 
(c) Falsely represent that a particular person has agreed to 
acquire goods or services; or 
(d) Falsely represent that goods are new, or that they are 
reconditioned, or that they were manufactured, 
produced, processed, or reconditioned at a particular 
time; or 
(e) Falsely represent that goods or services have any 
sponsorship, approval, endorsement, performance 
characteristics, accessories, uses, or benefits; or 
(f) Falsely represent that a person has any sponsorship, 
approval, endorsement, or affiliation; or 
(g) Make a false or misleading representation with respect 
to the price of any goods or services; or 
(h) Make a false or misleading representation concerning the 
need for any goods or services; or 
(i) Make a false or misleading representation conceITling the 
existence, exclusion, or effect of any condition, 
warranty, guarantee, right, or remedy; or 
U) Make a false or misleading representation concerning the 
place of origin of goods. 
Cf. Trade Practices Act 1 974 (Aust.), s. 53 
14. False representations and other misleading conduct 
in relation to land-(l) No person shall, in trade, in 
connection with the sale or grant or possible sale or grant of 
an interest in land or with the promotion by any means of 
the sale or grant of an interest in land,-
(a) Falsely represent that a person has any sponsorship, 
approval, endorsement, or affiliation; or 
(b) Make a false or misleading representation concerning the 
nature of the interest in the land, the price payable 
for the land, the location of the laIld, the 
characteristics of the land, the use to which the land 
is capable of being put or may lawfully be put, or 
the existence or availability of facilities associated with 
the land. 
(2) No person shall use physical force, harassment, or 
coercion in connection with the sale or grant or possible sale 
or grant of an interest in land, or the payment for an interest 
in land. IP/N/lINZL/G/2 
Page 10 
1986, No. 121 Fair Trading 9 
(3) In this section "interest", in relation to land, means a 
legal or equitable estate or interest in the land; and includes-
(a) A right of occupancy of the land, or of a building or part 
of a building erected on the land, arising by virtue 
of the holding of shares, or by virtue of a contract 
to purchase shares, in a company that owns the land 
or building; or 
(b) A right, power, or privilege, over, or in connection with, 
the fand. 
er. Trade Practices Act 1 974 (Aust.), s. 53A 
15. Limited application of sections 9 to 14 of this Act 
to news lTledia-(I) Nothing in sections 9 to 14 of this Act 
applies to the publication of any information or filatter in a 
newspaper by the publisher of that newspaper, not being-
(a) The publication of an advertisement; or 
(b) The publication of any information or matter relating to 
the supply or possible supply or the promotion of 
the supply or use of goods or services or the sale or 
grant or the possible sale or grant or thejromotion 
of the sale or grant of an interest in lan by-
(i) That publisher or, where that publisher is a body 
corporate, by any interconnected body corporate; or 
(ii) Any person who is a party to any contract, 
arrangement, or understanding with that publisher 
relating to the content, nature or tenor of the 
information or matter. 
(2) Nothing in sections 9 to 14 of this Act applies to the 
broadcasting of any information or matter by a broadcasting 
body, not being-
(a) The broadcasting of an advertisement; or 
(b) The broadcasting of any information or matter relating 
to the supply or possible supply or the promotion 
of the supply or use of goods or services or the sale 
or grant or the possible sale or grant or the 
promotion of the sale or grant of an interest in land 
by-
(i) That broadcasting body, or where that 
broadcasting body is a body corporate, by any 
interconnected body corporate; or 
(ii) Any person who is a party to any contract, 
arrangement, or understanding with that 
broadcasting body relating to the content, nature or 
tenor of the information or matter. 10 Fair Trading IP/N/1/NZL/G/2 
Page 11 
1986, No. 121 
(3) For the purposes of this section-
(a) The expressions "broadcasting" and "broadcasting body" 
shall have the same meanings as they have in section 
2 of the Broadcasting Act 1976: 
(b) The expressions "newspaper" and "publisher" shall have 
the same meanings as they have in section 2 of the 
Newspapers and Printers Act 1 955: 
(c) Any 2 or more bodies corporate are to be treated as 
interconnected if one of them is a body corporate of 
which the other is a subsidiary (within the meaning 
of section 158 of the Companies Act 1955) or if both 
of them are subsidiaries (within the meaning of that 
section) of one and the same body corporate, and 
"interconnected body corporate" shall be constnled 
accordingly. 
16. Certain conduct in relation to trade marks 
prohibited-(I) No person shall, in trade,-
(a) Forge any trade mark; or 
(b) Falsely apply to any goods any trade mark or mark so 
nearly resembling a trade mark as to be likely to 
mislead or deceive. 
(2) For the purposes of this section a person shall be deeITIed 
to forge a trade mark if that person-
(a) Without the consent of the proprietor of the trade mark, 
makes that trade mark or a mark so nearly 
resembling that trade mark as to be likely to mislead 
or deceive; or . 
(b) Falsifies any genuine trade mark, whether by alteration, 
effacement or otherwise. 
(3) For the purposes of this Part of this Act-
"Certification trade mark" means a mark registered as a 
certification trade mark under section 4 7 of the Trade 
Marks Act 1 953; and includes any mark which is used 
upon or in connection with goods for the purpose of 
indicating that they are goods of the proprietor of the 
mark by virtue of certification: 
"Trade mark" means any trade ITIark within the meaning 
of the Trade Marks Act 1 953; and includes a 
certification trade mark, and any mark which is used 
upon or in connection with goods for the purpose of 
indicating that they are the goods of the proprietor 
of the mark by virtue of manufacture~ selection, 
certification, dealing with, or offering for supply. IP/N/1/NZL/G/2 
Page 12 
1986, No. 121 Fair Trading 
Unfair Practices 
17. Offering gifts and prizes-No person shall,-11 
(a) In connection with the supply or possible supply of goods 
or services or with the promotion by any means of 
the supply or use of goods or services; or 
(b) In connection with the sale or grant or the possible sale 
or grant of an interest in land or with the promotion 
by any means of the sale or grant of an interest in 
land,-
offer gifts, prizes, or other free items with the intention of not 
providing tbem or of not providing them as offered. 
er. Trade Practices Act 1974 (Aust.) ss. 53A (1) (c), 54 
18. Trading statnp schelTles prohibited-( 1) No person 
shall, in trade, supply or arrange for the supply of any trading 
stamp, either directly or indirectly to any manufacturer, packer, 
importer, distributor, or seller of goods or supplier of services. 
(2) In this section "trading stamp" means any coupon, stamp, 
token, cover, package, document or thing-
(a) That is supplied or intended to be supplied in connection 
with the sale of goods or services or for the purpose 
of promoting the sale of goods or services; and 
(b) That is redeemable by a person who is not the 
manufacturer, packer, importer, or seller of goods or 
supplier of services in connection with which' it is 
supplied; and 
(c) That entitles the holder on redemption to money, goods 
or services or qualifies the holder on redemption to 
receive money, goods or services. 
er. 1975, No. 113, s.49A; 1979, No. 140, s. 24 
19. Bait advertising-(I) No person shall, in trade, advertise 
for supply at a specified price goods or services which that 
person-
(a) Does not intend to offer for supply; or 
(b) Does not have reasonable grounds for believing can be 
supplied by that person-
at that price for a period that is, and in quantities that are, 
reasonable having regard to the nature of the market in which 
the person carries on business and the nature of the 
advertisement. 
(2) Any person who has advertised goods or services for 
supply at a specified price shall offer such goods or services 
for supply at that price for a period that is, and in quantities 12 Fair, Trading IP IN 11 INZL/G/2 
Page 13 
1986, No. 121 
that are, reasonable having regard to the nature of the market 
in which the person carries on business and the nature of the 
advertisement. 
(3) In a prosecution of any person in relation to a failure to 
offer goods or services to a person (in this subsection referred 
to as the customer) in accordance with subsection (2) of this 
section, it is a defence if the person proves that-
(a) He 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 
where the offer was accepted by the customer, the 
person has so supplied or procured another person 
to supply the goods or services; or 
Cb) He offered to supply immediately, or to procure another 
person to supply within a reasonable time, equivalent 
goods or services to the customer in a reasonable 
quantity and at the price at which the first-mentioned 
goods or services were advertised, and, where the 
offer was accepted by the customer, the person has 
so supplied, or procured another person to supply, 
such equivalent goods or services. 
Cf. 1969, No. 12, s. 10 (3), (4); Trade Practices Act 1974 
(Aust.), s. 56 
20. Referral selling-(l) Subject to subsection (2) of this 
section, no person shall induce another person to acquire goods 
or services by representing that the person acquiring the goods 
or services will, after the contract for the acquisition of the 
goods or services is made, receive a rebate, commission, or 
other benefit in retUnl for giving that person the names of 
prospective customers or otherwise assisting that person to 
supply goods or services to other users or consumers, if receipt 
of the rebate, commission, or other benefit is contingent on 
an event occurring after that contract is made. 
(2) Nothing in subsection (1) of this section applies to the 
acquisition of goods for resupply. 
C( Trade Practices Act 1974 (Aust.), s. 57 
21. DelTlanding or accepting paytnent without intending 
to supply as -ordered-No person shall demand or accept 
payment or other consideration for goods or services, if at the 
time of the demand or acceptance that person-
(a) Does not intend to supply the goods or services; or IP/N/1/NZL/G/2 
Page 14 
1986, No. 121 Fair Trading 13 
(b) Intends to supply goods or services materially different 
from the goods or services in respect of which the 
payment or other consideration is demanded or 
accepted; or 
(c) Does not have reasonable grounds to believe that that 
person will be able to supply the goods or services 
within any specified period; or if no period is 
specified, within a reasonable time. 
er. Trade Practices Act 1974 (Aust.), s. 58 
22. Misleading representations about certain business 
activities-( 1) No person shall make a representation that is 
false or misleading in a material particular concerning the 
profitability or risk or any other material aspect of any business 
activity that that person represents as one that can be, or can 
be to a substantial extent, carried on at or from a person's 
place of residence. 
(2) No person who invites, whether by advertisement or 
otherwise, persons to engage or participate, or to offer or apply 
to engage or participate, in a business activity requiring-
(a) The performance by the persons concerned of work; or 
(b) The investment of money by the rersons concerned and 
the performance by them 0 work associated with 
the investment-
shall make, with respect to the profitability or risk or any other 
material aspect of the business activity, a representation that 
is false or rnisleadulg in a material particular. 
Cf. 1975, No. 113, s. 48B; 1979, No. 40, s. 23; Trade 
Practices Act 1974 (Aust.), s. 59 
28. HarassJTlent and coercion-No person shall use 
physical force or harassment or coercion in connection with 
the supply or possible supply of goods or servIces or the 
payment for goods or services. 
ef. Trade Practices Act 1974 (Aust.), s. 60 
24:. Pyratnid selling scheDles-(I) No person shall promote 
or operate a pyramid selling scheme. 
(2) For the purposes of this section, the term "pyramid selling 
h " sc erne means-
(a) A scheme-
(i) That provides for the supply of goods or services 
or both for reward; and 14 Fair Trading IP/N/l/NZL/G/2 
Page 15 
1986, No. 121 
(iD That, to ITlany partICIpants in the scheme, 
constitutes primarily an opportunity to sell an 
investment opportunity rather than an opportunity 
to supply goods or services; and 
(ill) That is or is likely to be unfair to many of the 
participants in the scheme in that-
(A) The financial rewards of many of those 
participants are dependent on the 
recn.ritment of additional participants 
(whether or not at successively rower 
levels); and 
(B) The number of additional participants in the 
scheme that must be recIUited to produce 
reasonable financial rewards to 
participants in the scheme is not attainable 
or is not likely to be attainable by many 
of the participants in the scheme: 
Cb) A scheme of the type commonly known as a chain letter 
scheme (whether or not it provides for the supply of 
goods or services or both) that is likely to be unfair 
to many of the participants in the scheme, in that-
(i) The financial rewards of many of those 
particirants are dependent on the recIUiunent of 
additional participants; and 
(ii) The number of additional participants in the 
scheme that must be recIUited to produce reasonable 
financial rewards to participants in the scheme is not 
attainable or is not likely to be attainable by many 
of the participants in the scheme. 
er. 1975, No. 113, s. 48A; 1979, No. 140, s. 22 (1) 
25. Provisions of this Part of this Act not lintited by 
reference to other provisions of this Part of this Act-No 
provision of this Part of this Act limits or affects any other 
provision of this Part of this Act. 
26. Itn.portation of goods bearing false trade description 
or faIse trade tnark prohibited-( 1) This section applies to­
(a) Any goods to which a false trade description is applied: 
(b) Any goods to which there is falsely applied any trade 
mark or mark so nearly resembling a trade mark as 
to be likely to mislead or deceive. . 
(2) All goods to which this section applies are hereby 
prohibited to be imported into New Zealand, and shall be IP/N/1/NZL/G/2 
Page 16 
1986, No. 121 Fair Trading 15 
deemed to be included among goods prohibited to be imported 
under section 48 of the Customs Act 1966 and the provisions 
of that Act shall apply to such goods accordingly. 
(3) In this section "false trade description" means any 
representation which if made in connection with the supply 
or possible supply of goods or with the promotion by any 
means of the supply or use of goods would constitute a 
contravention of section 13 (a), (d), or U) of this Act. 
(4) For the purposes of subsection (1) of this section a false 
trade description or trade mark or mark shall be deemed to 
be applied to goods if-
(a) It is woven in, impressed on, worked into, or annexed 
or affixed to the goods; or 
(b) It is applied to a covering, label, reel, or thing in or with 
which the goods are supplied. 
PART 11 
CONSUMER INFORMATION 
27. ConsuDler infonnation standards-(l) The Governor­
General may, from tiIne to time, on the recomIllendation of 
the Minister, by Order in Council, make regulations prescribing, 
in respect of goods or services of any description or any class 
or classes of goods or services, a consumer information 
standard relating to all or any of the following matters: . 
(a) The disclosure of information relating to the kind, grade, 
quantity, origin, performance, care, composition, 
contents, design, construction, use, price, finish, 
pac~aging, promotion, or supply of the goods or 
servtces: 
(b) The form and manner in which that information is to be 
disclosed on or in relation to, or in connection with, 
the supply or resupply, or possible supply or 
resupply, or promotion of the supply of the goods 
or services. 
(2) The Minister shall not make a recommendation under 
subsection (1) of this section unless-
(a) The Minister has consulted with such persons or 
representatives of such persons as the Minister 
considers will be substantially affected by any Order 
in Council made in accordance with the 
recommendation and ulose persons have had the 
opportunity to comment thereon to the Minister; and 
(b) The Minister has considered any such comments. 16 Fair Trading IP/N/l/NZL/G/2 
Page 17 
1986, No. 121 
(3) A failure to comply with subsection (2) of this section shall 
Ilot affect the validity of any Order in Council made under 
this section. 
(4) No person shall supply, or offer to supply, or advertise 
to supply goods or services in respect of which a consumer 
infonnation standard has been prescribed, unless that person 
complies with that consumer infonnation standard. 
(5) Nothing in subsection (4) of this section applies to any 
goods that are intended for use outside New Zeafand if there 
is applied to the goods-
(a) A statement that the goods are for export only; or 
(b) A statement indicating, by the use of words authorised 
by any regulations made under this section for the 
purposes of this subsection, that the goods are 
intended to be used outside New Zealand,-
and it shall be presumed for the purposes of this section, unless 
the contrary is established, that the goods so identified are 
intended to be so used. 
(6) For the furposes of subsection (5) of this section, a 
statement shal be deemed to be applied to goods if-
(a) The statement is woven in, impressed on, worked into, 
or aIlflexed or affixed to the goods; or 
(b) The statement is applied to a covering, label, reel, or 
thing in or with which the goods are supplied. 
(7) No Order in Council may be made under this section in 
respect of any medicine or related product within the meaning 
of the Medicines Act 1981, except in relation to the price of 
the medicine, or related product. 
C( Trade Practices Act 1 974 (Aust.) s. 63 
28. Standards tnay be declared to be consulTler 
information standards-(I) The Governor-General may, from 
time to tUne, on the recommendation of the Minister, by Order 
in Council, make regulations declaring, in respect of goods or 
services of any decription or any class or classes of goods or 
services specified in the order, that-
(a) A standard specification or specified part of a standard 
specification promulgated by the Standards Council 
pursuant to the Standards Act 1 965; or 
(b) A standard specification or specified part of a standard 
specification prescribed by any association or body 
specified in the order; or 
(c) A standard specification or specified part of a standard 
specification referred to in paragraph (a) or 
paragraph (b) of this subsection \vith such additions 
or variations as are specified in the order-IP/N/lINZL/G/2 
Page 18 
1986, No. 121 Fair Trading 1 7 
is a consumer information standard for the purposes of 
section 27 of this Act. 
(2) The Minister shall not make a recommendation under 
subsection (1) of this section unless-
(a) The Minister has consulted with such persons or 
representatives of such persons as the Minister 
considers will be substantially affected by any Order 
in Council made in accordance with the 
recommendation and those persons have had the 
opportunity to comment thereon to the Minister; and 
(b) The Minister has considered any such comments. 
(3) A failure to comply with subsection (2) of this section shall 
not affect the validity of any Order in Council made under 
this section. 
(4) Every standard specification or part of a standard 
specification referred to in any regulations made under this 
section or the standard specification or part of a standard 
specification so referred to as added to or varied, as the case 
may be, shall be deemed to be a consumer information 
standard for the purposes of section 27 of this Act. 
(5) No Order in Council may be made under this section 
prescribing a consumer infornlation standard which is 
lllconsistent with a corlsumer infonnation standard prescribed 
under section 27 of this Act. 
e( Trade Practices Act 1974 (Aust.), s. 63AA 
PART III 
PRODUCT SAFETY 
29. Product safety standards-(l} The GoveITlor-General 
may, from time to time, on the recommendation of the 
Minister, by Order in Council, make regulations in respect of 
goods of any description or any class or classes of goods, 
prescribing for the purpose of preventing or reducing the risk 
of injury to any person, a product safety standard relating to 
all or any of the following matters-
(a) The perfonnance, composition, contents, rnanufacture, 
processing, design, constILlction, finish or packaging 
of the goods: 
(b) The testing .of the goods during or after manufacture or 
processing: 
(c) The form and content of markings, ~~arnlngs or 
instructions to accompany the goods. 
(2) The Minister shall not make a recommendation under 
subsection (I) of this section unless-18 Fair Trading IP/N/l/NZL/G/2 
Page 19 
1986, No. 121 
(a) The Minister has consulted with such persons or 
representatives of such persons as the Minister 
considers will be substantially affected by any Order 
in Council made in accordance with the 
recommendation and those persons have had the 
opportunity to comment thereon to the Minister; and 
(b) The Minister has considered any such comments. 
(3) A failure to comply with subsection (2) of this section shall 
not affect the validity of any Order in Council made under 
this section. 
(4) No person shall supply, or offer to supply, or advertise 
to supply, goods of a kind in respect of which a product safety 
standard has been prescribed unless those goods comply with 
that product safety standard. 
(5) Nothing in subsection (4) of this section applies to any 
goods that are intended for use outside New Zealand if there 
is applied to the goods-
(a) A statement that the goods are for export only; or 
(b) A statement indicating, by the use of words authorised 
by any regulations made under this section for the 
purposes of this subsection, that the goods are 
intended to be used outside New Zealand,-
and it shall be presumed for the purposes of this section, unless 
the contrary is established, that the goods so identified are 
intended to be so used. 
(6) For the Furposes of subsection (5) of this section, a 
statement shal be deemed to be applied to goods if-
(a) The statement is woven in, impressed on, worked into, 
or annexed or affixed to the goods; or 
(b) The statement is applied to a covering, label, reel, or 
thing in or with which the goods are supplied. 
C( Trade Practices Act } 974 (Au5t.), s. 62 (}) (a), (2) 
80. Standards Dlay be declared to be product safety 
standards-(}) The Governor-General may, from time to time, 
on the recommendation of the Minister, by Order in Council, 
make regulations declaring, in respect of goods of any 
description or any class or classes of goods specified in the 
order, that-
(a) A standard specification or specified part of a standard 
specification promulgated by the Standards Council 
pursuant to the Standards Act 1 965; or 
(b) A standard specification or specified part of a standard 
specification prescribed by any association or body 
specified in the order; or IP/N/l/NZL/G/2 
Page 20 
1986, No. 121 Fair Trading 19 
(c) A standard specification or specified part of a standard 
specification referred to in paragraph (a) or 
paragraph (b) of this subsection with such additions 
or variations as are specified in the order-
is a product safety standard for the purposes of section 29 of 
this Act. 
(2) The Minister shall not make a recommendation under 
subsection (1) of this section unless-
(a) The Minister has consulted with such persons or 
representatives of such persons as the Minister 
considers will be substantially affected by any Order 
in Council made in accordance with the 
recommendation and those persons have had the 
opportunity to comment thereon to the Minister; and 
(b) The Minister has considered any such comments. 
(3) A failure to comply with subsection (2) of this section shall 
not affect the validity of any Order in Council made under 
this section. 
(4) Every standard specification or part of a standard 
specification referred to in the order, or the standard 
specification or part of a standard specification so referred to 
as added to or varied, as the case may be, shall be deemed 
to be a product safety standard for the purposes of section 29 
of this Act. 
(5) No Order in Council may be made under this se'ction 
prescribing a product safety standard which is inconsistent with 
a product safety standard prescribed under section 29 of this 
Act. 
SI. Unsafe goods-(l) Where it appears to the Minister that 
goods of any description or any class or classes of goods will 
or may cause injury to any person, the Minister may, by notice 
in the Gaz.ette, declare the goods to be unsafe goods. 
(2) A notice made pursuant to subsection (I) of this section 
shall, unless previously revoked by the Minister by notice in 
the Gaz.ette, remain in force for 18 months after the date of 
publication of the notice in the Gaz.ette. 
(3) Where-
(a) A period of 18 months has elapsed after the date of 
publication of a notice in the Ga,zette pursuant to 
subsection (1) of this section declaring goods to be 
unsafe goods; and 
(b) A product safety standard has not been prescribed 
pursuant to section 29 of this Act in respect of the 
goods~-20 Fair Trading IP/N/l/NZL/G/2 
Page 21 
1986, No. 121 
the Minister may, by notice in the Gaz.ette, prohibit the supply 
of t.he goods indefinitely or for such period as may be specified 
in the notice. 
(4) A notice made pursuant to subsection (3) of this section 
rTlay be amended or revoked at any time by the Minister by 
notice in the Gaz.ette. 
(5) No person shall supply, or offer to supply, or advertise 
to supply, goods-
(a) In respect of which there is in force a notice declaring 
the goods to be unsafe goods; or 
(b) In respect of which there is in force a notice under 
subsection (3) of this section. 
Cf. Trade Practices Act 1974 (Aust.), s. 62 (1) (b), (20), (2E) 
32. COlTlpulsory product recall-(l) Where a person (in this 
section referred to as "the supplier") has in trade supplied 
goods \vhich-
(a) Do not comply ""rith a product safety standard prescribed 
in-respect of the goods; or 
(b) Are goods of a kind which will or may cause injury to 
any person-
and the supplier has not recalled the goods or taken satisfactory 
action to recall the goods the Minister may, by notice to the 
supplie:, require t~e supplier to take the action specified in 
subsectIon (3) of thIs sectIon. . 
(2) Where a person (in this section referred to as "the 
supplier") has in trade supplied goods which are goods of a 
kind in relation to which there is in force a notice under section 
3 1 (1) or (3) of this Act, and the supplier has not recalled the 
goods or taken satisfactory action to recall the goods, the 
I\1inister may by notice to the supplier require the supplier to 
take the action specified in subsection (3) of this section. 
(3) For the purposes of subsections (1) and (2) of this section, 
the f.\1inister may require the supplier, in a manner and within 
a period specified and at his own expense, to do all or any of 
the follo\ving: 
(a) Recall the goods: 
(b) Disclose to the public information relating to-
(i) The characteristics of the goods which render 
them unsafe; or 
(ii) The circumstances in which use of the goods is 
unsafe; or 
(iii) Any other matters relating to the goods or the 
use of the goods as may be specified: IP/N/1/NZL/G/2 
Page 22 
1986, No. 121 Fair Trading 21 
(c) Repair or replace the goods or refund to any person to 
whom the goods were supplied or resupplied the 
price paid for the goods or any lesser amount as may 
be reasonable having regard to the use that person 
has had of the goods. 
(4) Where a notice is given to a supplier under subsection (1) 
or subsection (2) of this section that supplier shall comply in 
all respects with the notice. 
(5) Where a notice is given to a supplier under subsection (1) 
or subsection (2) of this section that supplier shall not, in 
trade,-
(a) Where the notice identifies a defect in, or a dangerous 
characteristic of the goods, supply goods of a kind 
to which the notice relates which contain that defect 
or have that characteristic; or 
(b) In any other case, supply goods of a kind to which the 
notice relates. 
ss. Importation of certain goods prohibited-All goods 
the supply of which would constitute a contravention of this 
Part of this Act are hereby prohibited to be imported into Ne",,­
Zealand and shall be deemed to be included among goods 
prohibited to be imported under section 48 of the Customs 
Act 1 966 and the provisions of that Act shall apply to such 
goods accordingly. 
PART IV 
SAFETY OF SERVICES 
S4. Meaning of uservicesu-For the purposes of this Part 
of this Act 'services' means the performance of work by way 
of-
(a) The maintenance, repair, treatment, processing, 
installation, assembly, clearling or alteration of goods: 
(b) The construction, maintenance, repair, cleaning or 
alteration of any building or other fixture on land: 
(c) The development of land: 
(d) The transportation of goods. 
ef. Trade Practices Act 1974, (Aust.), s. 74 (3) 
35. Safety standards in resp~ct of services-(l) The 
Governor-General may, from tIme to time, on the 
recommendation of the Minister, by Order in Council, make 
regtllations, in respect of services of any description or any 
class or classes of services, prescribing, for the purpose of 22 Fair Trading IP/N/1/NZL/G/2 
Page 23 
1986, No. 121 
preventing or reducing the risk of Injury to any person, a 
services safety standard relating to the perfonnance of those 
servIces. 
(2) The Minister shall not make a recommendation under 
subsection (I) of this section unless-
(a) The Minister has consulted with such persons or 
representatives of such persons as the Minister 
considers will be substantially affected by any Order 
in Council made in accordance with the 
recommendation and those persons have had the 
opportunity to comment thereon to the Minister; and 
(b) The Minister has considered any such comments. 
(3) A failure to comply with subsection (2) of this section shall 
not affect the validity of any Order in Council made under 
this section. 
(4) No person shall supply, or offer to supply, or advertise 
to supply, services of a kind in respect of which a services 
safety standard has been prescribed unless those services 
comply with that services safety standard. 
86. Standards lTlay be declared to be services safety 
standards-Cl} The Governor-General may, from time to time, 
on the recommendation of the Minister, by Order in Council, 
make regulations declaring in respect of services of any 
description or any class or classes of services specified in the 
order, that-
(a) A standard specification or specified part of a standard 
specification promulgated by the Standards Council 
pursuant to the Standards Act 1 965; or 
(b) A standard specification or specified part of a standard 
specification prescribed by any association or body 
specified in the order; or 
(c) A standard specification or specified part of a standard 
specification referred to in paragraph (a) or 
paragraph (b) of this subsection with such additions 
or variations as are specified in the order-
IS a services safety standard for the purposes of section 35 of 
this Act. 
(2) The f\1inister shall not make a recommendation under 
subsection (1) of this section unless-
(a) The Minister has consulted with such persons or 
representatives of such persons as the Minister 
considers , ... ill be substantially affected by any Order 
in Council made in accordance \vith the 
recommendation and those persons have had the 
opportllflity to comment thereon to the ~1inistcr~ and 
(b) The \linister has considered any such comments. IP/N/lINZL/G/2 
Page 24 
1986, No. 121 Fair Trading 23 
(3) A failure to comply with subsection (2) of this section shall 
not affect the validity of any Order in Council made under 
this section. 
(4) Every standard specification or part of a standard 
specification referred to in the order, or the standard 
specification or part of a standard specification referred to as 
added to or varied, as the case may be, shall be deemed to 
be a services safety standard for the purposes of section 35 of 
this Act. 
(5) No Order in Council may be made under this section 
prescribing a services safety standard which is inconsistent with 
a services safety standard prescribed under section 35 of this 
Act. 
PART V 
ENFORCEMENT AND REMEDIES 
Jurisdiction of Courts 
87.Jurisdiction of High Court-In accordance with this 
Part of this Act, the High Court shall hear and detennine the 
following matters-
(a) Appeals from criminal proceedings in a District Court for 
offences against section 40 of this Act: 
(b) Applications for injunctions under section 41 of this Act: 
(c) Applications for orders under sections 42 and 43 of this 
Act. . 
88. Jurisdiction of District Courts-In accordance with this 
Part of this Act, the District Courts shall hear and determine 
the following matters-
(a) Proceedings for offences against section 40 of this Act: 
(b) Applications for orders under section 43 of this Act. 
89 .. Jurisdiction of Small Clairns Tribunals-In 
accordance with this Part of this Act, a Small Claims Tribunal 
established under section 4 of the Small Claims Tribunals Act 
1976 shall have jurisdiction to hear and determine applications 
for orders under section 43 (2) (c) to (f) of this Act (except in 
respect of a contravention of section 9 of this Act). 
Offences 
40. Contraventions of provisions of Part I, Part 11, 
Part Ill, and Part IV an offence-(I) Every person who 
contravenes any of the provisions of Part I (except sections 9, 
14 (2), and 23), or Part 11, or Part III or Part IV of this Act, 
commits an offence and is liable on summary conviction-24 Fair Trading IP/NI1 INZL/G/2 
Page 25 
1986, No. 121 
(a) In the case of a person other than a body corporate, to 
a fine not exceeding $30,000; and 
(b) In the case of a body corporate, to a fine not exceedirlg 
SlOO,OOO. 
(2) Where 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 Qr a substantially similar nature 
and occurred at or about the same time, the aggregate amount 
of any fines ixnposed on that person in respect of those 
convictions shall not exceed the amount of the maximum fine 
that may be imposed in respect of a conviction for a single 
offence. 
(3) Proceedings under this section may be commenced at any 
time within 3 years after the matter giving rise to the 
con tra ven tion arose. 
Cf. Trade Practices Act 1974 (Aust.), s. 79 (3) 
Civil Proceedings 
41. Injunctions tnay be granted by Court for 
contravention of Part I, Part 11, Part Ill, and Part IV­
(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 any of the provisions of Parts I to IV 
of this Act: 
(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, 
~'hether 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) Conspirin~. 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. 
(3) \Vhere an application is made to the Court under this 
section for the grant of an injunction restraining a person from 
engaging in conduct of a particular kind the Court may,­
(a) If it is satisfied that the person has engaged in conduct 
of that kind, grant an injunction restraining the 
person from engaging in conduct of that kind; or IP/N/1/NZL/G/2 
Page 26 
1986, No. 121 Fair Trading 25 
(b) If in the opInIon of the Court it is desirable to do SO, 
grant an interim injunction restraining the person 
from engaging in conduct of that kind,-
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) Where an application is made to the Court under this 
section for the grant of an injunction restraining a person from 
engaging in conduct of a particular kind, the Court may,-
(a) If it appears to the Court that, in the event that an 
injunction is not granted, it is likely that the person 
will engage in conduct of that kind, grant an 
injunction restraining the person from engaging in 
conduct of that kind; or 
(b) If in the opinion of the Court it is desirable to do so, 
grant an interim injunction restraining the person 
from engaging in conduct of that kind,-
whether or not the person has previously engaged in conduct 
of that kind and whether or not there is an imminent danger 
of substantial damage to any person if the first·mentioned 
person engages in conduct of that kind. 
Cr. Trade Practices Act 1 974 (Aust.), s. 80 (1 )-(5) 
42. Order -to disclose infonnation or publish 
advertisetnent-Where, on the application of the Commission, 
the Court is satisfied that a person has engaged in conduct 
constituting a contravention of any of the provisions of Parts I 
to IV of this Act, the Court may (whether or not that person 
has previously engaged in such COllduct), make either or both 
of the following orders: 
(a) An order requiring that person, or any other person 
involved in the contravention, to disclose, at that 
person's own expense, to the public, or to a particular 
person or to persons included in a particular class of 
persons, in such manner as is specified in the order, 
such information, or information of such a kind, as 
is so specified, being information that is in the 
possession of the person to whom the order is 
directed or to which that person has access: 
(b) An order requiring that person, or any other person 
involved in the contravention, to publish, at that 
person's own expense, in such manner and at such 
times as are specified in the order, correc.tive 
statements the terms of which are specified in, or are 
to be detennined in accordance with, the order. 
er. Trade Practices Act 1974 (A list.), s. 80.-\ (1) 26 Fair Trading IP/N/1/NZL/G/2 
Page 27 
1986, No. 121 
48. Other orders-(I) Where, in any proceedings under this 
Part of this Act, or on the application of any person, the Court 
finds that a person, whether or not that person is a party to 
the proceedings, has suffered, or is likely to suffer, loss or 
damage by conduct of any other person that constitutes or 
would constitute-
(a) A contravention of any of the provisions of Parts I to IV 
of this Act; or 
(b) Aiding, abetting, counselling, or procurmg the 
contravention of such a provision; or 
(c) Inducing by threats, promises, or otherwise the 
contravention of such a provision; or 
(d) Being in any way directly or indirectly knowingly 
conce~:d in, or party to, the contravention of such 
a provIsIon; or 
(e) Conspiring with any other person in the contravention 
of such a provision-
the Court may (whether or not it grants an injunction or makes 
any other order under this Part of this Act) make all or any 
of the orders referred to in subsection (2) of this section. 
(2) For the purposes of subsection (I) of this section, the Court 
may make the following orders-
(a) An order declaring the whole or any part of a contract 
made between the person who suffered, or is likely 
to suffer, the loss or damage and the person who 
engaged in the conduct referred to in subsection (1) 
of this section or of a collateral arrangement relating 
to such a contract, to be void and, if the Court thinks 
fit, to have been void ab initio or at all times on and 
after such date, before the date on which the order 
is made, as is specified in the order: 
(b) An order varying such a contract or arrangement in such 
manner as is specified in the order and, if the Court 
thinks fit, declaring the contract or arrangement to 
have had effect as so varied on and after such date, 
before the date on which the order is made, as IS so 
specified: 
(c) An order directing the person ",,·ho engaged in the 
conduct, referred to in subsection (1) of this section 
to refund money or return property to the person 
who suffered the loss or damage: 
(d) An order directing the person who engaged in the 
conduct, referred to in subsection (1) of this section 
to pay to the person ","ho suffered the loss or damage 
the arnount of the loss or damage: IP/N/l/NZL/G/2 
Page 28 
1986, No. 121 Fair Trading 27 
(e) An order directing the person who engaged in the 
conduct, referred to in subsection (1) of this section 
at that person's own expense, to repair, or provide 
parts for, goods that had been supplied by the person 
who engaged in the conduct to the person who 
suffered, or is likely to suffer, the loss or datnage: 
(f) An order directing the person who engaged in the conduct, 
referred to in subsection (1) of this section at that 
person's own expense, to supply specified services to 
the person who suffered, or is likely to suffer, the 
loss or damage. 
(3) In the exercise of its jurisdiction under this section a 
District Court shall not-
(a) Make any order under subsection (2) (a) of this section in 
any case where the value of the consideration for tht. 
promise or act of any party to the contract or 
collateral arrangement exceeds S 12,000: 
(b) Make an order under subsection (2) (b) of this section in 
any case where the value of the consideration for the 
promise or act of any party to the contract or 
arrangement exceeds S 12,000: 
(c) Make an order under subsection (2) (c) of this section 
directing a person to refund money or return 
property where the amount of money or the value 
of the property exceeds S 12,000: 
(d) Make an order under subsection (2) (d) of this section 
requlnng a person to pay an amount exceeding 
S 12,000: 
(e) Make an order under subsection (2) (e) of this section 
directing a person to repair goods or provide parts 
for goods where the value of the work required to 
repair the goods, or the value of the parts, as the 
case may be, exceeds S 12,000: 
(f) Make an order under subsection (2) (f) of this section 
directing a person to supply services where the value 
of the services exceeds S 12,000. 
(4) In the exercise of its jurisdiction under this section a Small 
Claims Tribunal shall not-
(a) Make an order under subsection (2) (c) of this section 
directing a person to refund money or return 
property where the amount of money or the value 
of the property exceeds SI ,000: 
(b) Make an .order under subsection (2) (d) of this section 
requiring a person to pay an amount exceeding 
Sl,OOO: 28 Fair Trading IP/N/1/NZL/G/2 
Page 29 
1986, No. 121 
(c) Make an order under subsection (2) (e) of this section 
directing a person to repair goods or provide parts 
for goods where the value of the work required to 
repair the goods, or the value of the parts, as the 
case may be, exceeds $1,000: 
(d) Make an order under subsection (2) (f) of this section 
directing a person to supply services where the value 
of the services exceeds $1,000. 
(5) An application under subsection (1) of this section may 
be made at any time within 3 years from the time when the 
matter giving rise to the application occurred. 
(6) An order made under subsection (2) (a) or (b) of this section 
shall not prevent proceedings being instituted or commenced 
under this Part of this Act. 
(7) Nothing in this section limits or affects the Illegal Contracts 
Act 1970. 
(8) For the purposes of subsection (1) of this section, a 
reference to "Court" includes a reference to a District Court 
and a Small Claims Tribunal. 
(9) Nothing in this section affects section 27 of the Accident 
Compensation Act 1982. 
Cf. Trade Practices Act 1 974 (Aust.), s. 87 (1), (1 A), (2) 
44. Defences-( 1) Subject to this section, it is a defence to 
a prosecution for an offence against section 40 of this Act 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) of this section, 
the term "another person" does not include-
(a) A servant or agent of the defendant; or 
~b) Where the defendant is a body corporate, a director, 
servant or agent of the defendant. 
(3) A defendant is not, without the leave of the District Court, 
entitled to rely on the defence provided by subsection (1) (b) 
of this section that the contravention was due to reasonable 
reliance on information supplied by another person, or by IP/NIlINZL/G/2 
Page 30 
1986, No. 121 Fair Trading 29 
subsection (1) (c) (i) of this section that the contravention was 
due to the act or default, of another person, unless the 
defendant has, not later than 7 days before the date on which 
the hearing of the proceedings commences, served on the 
informant a notice in writing identifying that person. 
(4) It is a defence to a prosecution for an offence agairlst 
section 40 of this Act, or to any other proceedings under this 
Part of this Act, in relation to a contravention of a provision 
of this Act 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 received the advertisement, or the 
information contained in the advertisement, as the 
case may be, in the ordinary course of that business 
and 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 the provision. 
(5) Subject to subsection (6) of this section, it is a defence to 
a prosecution for an offence against section 40 of this Act, or 
to any other proceedings under this Part of this Act, in relation 
to a contravention of section 27 of this Act, if the defendant 
proves-
(a) That the goods to which the proceedings relate were 
acquired by the defendant for the purpose of resupply 
from a person (not being an agent of a person outside 
New Zealand) who carried on in New Zealand the 
business of supplying such goods; and 
(b) That the defendant did not know, and could not with 
reasonable diligence have ascertained, that the goods 
did not comply with the consumer information 
standard or that the defendant had not complied with 
that standard in relation to the goods, as the case 
may be, or that the defendant relied in good faith 
on a representation by the person from whom the 
defendant acquired the goods that a consumer 
information standard had not beell prescribed for 
those goods. 
(6) A defendant is not, ""ithout the leave of the District Court, 
entitled to rely on any defence provided by subsection (5) of 
this section unless the defendant has, not later than 7 days 
before the date on which th~ hearing of the proceedings 
commences, served, in the case of proceedings for an offence, 
on the inforrnant, and in the case of any other proceedings, 30 Fair Trading IP/N/1/NZL/G/2 
Page 31 
1986, No. 121 
on the person commencing those proceedings, a notice in 
writing identifying the person by whom the goods were 
supplied. 
Cf. Trade Practices Act 1 974 (Aust.), s. 85 (1 )-(5) 
45. Conduct by servants or agents-Cl) Where, in 
proceedings under this Part of this Act in respect of any conduct 
engaged in by a body corporate, being conduct in relation to 
which any of the provisions 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, servant or agent of the body 
corporate, acting within the scope of that person's actual or 
apparent authority, had that state of mind. 
(2) Any conduct engaged in on behalf of a body corporate­
(a) By a director, servant, or agent of the body corporate, 
acting within the scope of that person's actual or 
apparent authority; or 
(b) By any other person at the direction or witl:t the consent 
or agreement (whether express or implied) of a 
director, servant, or agent of the body corporate, 
given within the scope of the actual or apparent 
authority of the director, servant or agent-
shall be deemed, for the purposes of this ACJ, to have been 
engaged in also by the body corporate. 
(3) Where, in a proceeding under this Part of this Act in 
respect of any conduct engaged in by a person other than a 
body corporate, being conduct in relation to which a provision 
of this Act applies, it is necessary to establish the state of Dlind 
of the person, it is sufficient to show that a servant or agent 
of the person, acting within the scope of that person's actual 
or apparent authority, had that state of mind. 
(4) Any conduct engaged in on behalf of a person other than 
a body corporate-
(a) By a servant or agent of the person acting within the 
scope of that person's actual or apparent authority; 
or 
(b) By any other person at the direction or with the consent 
or agreement (whether express or implied) of a 
servant or agent of the first-mentioned person, given 
~1ithin the scope of the actual or apparent authority 
of the servant or agent-
shall be deemed, for the purposes of this Act, to have been 
engaged in also by the first-mentioned person. 
. (5) A reference in this section to the state of Inind of a person 
1I1cludes a reference to the kno~'ledge, intention, opinion, belief IP/N/lINZL/G/2 
Page 32 
1986, No. 121 Fair Trading 31 
or purpose of the person and the person's reasons for that 
intention, opinion, belief or purpose. 
C( Trade Practices Act 1974 (Aust.), s. 84 
46. Finding in proceedings to be evidence-In any 
application for an order against a person under section 43 of 
this Act, a finding of any fact made in proceedings for an 
injunction under section 4 1 of this Act or for an order under 
section 42 of this Act, or for an offence under section 40 of 
this Act, being proceedings before the High Court or a District 
Court in which that person was found to have engaged in 
conduct of the kind referred to in section 43 (1) (a) to (e) of this 
Act is prima facie evidence of that fact and the finding may 
be proved by production of a document under the seal of the 
Court or District Court, as the case may be, in which the finding 
was made. 
er. Trade Practices Act 1974 (Aust.), s. 83 
PART VI 
MISCELLANEOUS PROVISIONS 
4-7. Powers to obtain docutnents and inspect goods­
( 1) Subject to this section, an officer of the Commission 
authorised in writing for the purpose may, for the purpose of 
assisting the Commission to ascertain or establish whether any 
person has engaged in or is engaging in conduct that constitutes 
or may constitute a contravention of this Act, enter upon and 
search any premises and-
(a) Inspect, remove and take copies of any documents or 
extracts therefrom, in the possession of or under the 
control of any person: 
(b) Inspect and remove any goods in the possession of or 
under the control of any person. 
(2) No officer of the Commission so authorised shall exercise 
the powers conferred by subsection (1) of this section unless 
the officer obtains a warrant authorising that officer to exercise 
those powers in accordance with subsection (3) of this section. 
(3) Where any judicial officer is satisfied, on application in 
writing made on oath, that there is reasonable ground for 
believing that it is necessary for the purpose of assisting the 
Commission to ascertain or establish whether any person has 
engaged in or is engaging in conduct that constitutes or may 
constitute a contravention of this Act for an officer of the 
Commission to exercise the powers conferred by subsection (1) 
of this section, that judicial officer may by warrant, authorise 
any officer of the Commission to exercise those po~'ers in 
relation to any premises specified in the warrant. 32 Fair Trading IP/N/l/NZL/G/2 
Page 33 
1986, No. 121 
(4) Every warrant issued under subsection (3) of this section 
shall authorise the person named in the warrant within such 
period as shall be specified in the warrant to enter upon and 
search the premises specified in the warrant and-
(a) Inspect, remove, and take copies of any documents or 
extracts therefrom in the possession of or under the 
control of any person: 
(b) Inspect and remove any goods in the possession of or 
under the control of any person. 
(5) The power to enter and search any premises pursuant to 
a warrant issued under this section may be exercised on one 
occassion only and shall be exercised at a reasonable time. 
(6) Every officer of the Commission authorised to enter upon 
and search any premises pursuant to subsection (3) of this 
section shall on first entering those premises, and, if requested, 
at any subsequent time, produce-
(a) Evidence of that person's authority to enter the premises; 
and 
(b) Evidence of that person's identity. 
(7) Every officer of the Commission who executes a warrant 
under this section shall prepare a schedule specifying-
(a) Any documents which have been removed from the 
premises or of which any copies or extracts have been 
taken: 
(b) Any goods which have been removed from the premises: 
(c) The place from which any such documents, or extracts, 
or goods have been removed: 
(d) The place where any such documents, or extracts, or 
goods are held. 
(8) A copy of every schedule prepared under subsection (7) 
of this section shall be given to the occupier or person in charge 
of the premises. 
(9) The occupier or person in charge of any premises that 
an authorised officer enters pursuant to subsection (3) of this 
section shall provide the authorised officer with all reasonable 
facilities and assistance for the effective exercise of that officer's 
powers. 
(10) The Commission, or any officer of the Commission, 
may-
(a) Inspect and take copies of any documents or extracts 
therefrom obtained under this section: 
(b) Inspect any goods obtained under this section. 
(1 1) Any person who obstIUctS or hinders an officer of the 
Commission acting pursuant to a ,",'arrant issued under 
subsection (3) of this section commits an offence and is liable IP/N/1/NZL/G/2 
Page 34 
1986, No. 121 Fair Trading 33 
on summary convICtIOn to a fine not exceeding $4,000 in the 
case of a person not being a body corporate, and $12,000 in 
the case of a body corporate. 
48. Proceedings privileged-(l) No proceedings, civil or 
criminal, shall lie against the Commission for anything it may 
do or fail to do in the course of the exercise or intended 
exercise of its functions under this Act unless it is shown that 
the Commission acted without reasonable care or in bad faith. 
(2) No proceedings, civil or criminal, shall lie against any 
member or associate member of the Commission, or any officer 
of the Commission, for anything that person may do or say 
or fail to do or say in the course of the operations of the 
Commission under this Act, unless it is shown that that person 
acted in bad faith. 
(3) Nothing in subsections (1) and (2) of this section applies 
in respect of proceedings for-
(a) An offence against section 78 or section 78A or section 
105 or section 105A of the Crimes Act 1 961; or 
(b) The offence of conspiring to commit an offence against 
section 78 or section 78A or section 105 or section 
105A of the Crimes Act 1 961; or _ 
(c) The offence of attempting to commit an offence against 
section 78 or section 78A or section 105 or section 
105A of the Crimes Act 1 961. 
49. Repeals and consequential atnendlTlents-(I) The 
enactment specified in the First Schedule to this Act is hereby 
amended in the manner indicated in that Schedule. 
(2) The enactrnents specified in Part A of the Second Schedule 
to this Act are hereby repealed with effect from the 
commencement of this Act. 
(3) The enactrnents specified in Part B of the Second Schedule 
to this Act are hereby repealed with effect from the 1 st day 
of May 1987. 
(4) The orders and notices specified in the Third Schedule 
to this Act are hereby revoked 
50. Saving of other laws-( 1) Nothing in this Act limits or 
affects the operation of any other Act. 
(2) Nothing in this Act limits or affects any liability that any 
person may incur under any rule of la\v or enactment other 
than this Act. 
er. 1978, No. 103, s. 65; Trade Practices Act 1974 (Aust.), 
s. 75 34 
St"C"t ion .. 9 ( I) Fair Trading 
SCHEDULES 
FIRST SCHEDULE 
ENACTMENT AMENDED IP/N/1/NZL/G/2 
Page 35 
1986, No. 121 
Amendment 
Title of Enactment 
1981, No. 25-The Fac' 
tories and Commercial 
Premises Act 1981 By repealing paragraph (i) of subsection (1) of 
section 61, and substituting the following 
paragraph: 
St"ction 49 (2), (3) "(i) Seeks or receives any premium in 
respect of the employment of any 
person in anr Wldertaking in con' 
tra vention 0 section 1 7 (1) of this 
Act; or" 
SECOND SCHEDULE 
ENACTMENTS REPEALED 
Part A 
1908, No. l74-The Employment Agents Act 1908 (R.S. Vol. 17, p.,201). 
1954, No. 43-The Merchandise Marks Act 1954 (R.S. Vol. 10, p. 113). 
1954, No. 71-The Labour Department Act 1952: So much of the First 
Schedule as relates to the Employment Agents Act 1908 
(R.S. Vol. 7, p. 52 I). 
1960. No. 24-The Employment Agents Amendment Act 1960 (R.S. 
Vol. 17, p. 209). 
1967, No. 30-The Employment Agents Amendment Act 1967 (R.S. 
Vol. 1 7. p. 210). 
1969, No. 12-The Consumer Infonnation Act 1969. 
1975, No. 46-The Unsolicited Goods and Services Act 1975: Section 8 (4). 
1975, No. 74-The Employment AgentS Amendment Act 1975 (R.S. 
Vol. 1 7, p. 2 I 1). 
1981, No. 118-The Medicines Act 1981: Section 112. 
1982. No. 134-The Fertilisers Act 1982: Section 25 (2). 
1986. No. 5-The Commerce Act 1986: Section 115. 
Part B 
1949, No. 41-The Wool Labelling Act 1949 (R.S. Vol. 11, p. 903). 
1977. No. 87-The Safety of Children's Night Clothes Act 1977. IP IN I lINZL/G/2 
Page 36 
1986, No. 121 Fair Trading 
THIRD SCHEDULE 
ORDERS AND NOTICES REVOKED 
Title 
The Footwear Marking Order 1955 
The Clothing Marking Order 1 956 .. 
The Dry Cen Batteries Marking Order (No. 2) 1957 
The Consumer Information (Quantity) Notice 1971 
The Consumer Information (Quantity) Notice 1973 
This Act is administered in the Department of Trade and Industry. 
WELLINGTON, NEW ZEALAND: 35 
Section 49 (4) 
Statutory 
Regulations 
1955/208 
1956/118 
1957/205 
1971/150 
1973/139 
Published under the authority of the New Zealand Government-1994 
55345H/948 