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ARTICLE · 05 JUNE 2016

Consumer law reform: unfair contract terms

NZ has prohibited unfair contract terms in standard form consumer contracts.

New ZealandConsumer Protection

Arguably the most wide-reaching change following the recent overhaul of New Zealand's consumer laws is the prohibition on unfair contract terms in standard form consumer contracts. These changes come into effect on 17 March 2015.

The Commerce Commission has indicated that it will take a proactive approach to enforcing these new rules. It has recently finalised its guidelines outlining its intended approach to enforcement. You can access these guidelines by clicking here.

What is the purpose of the change?

Consumers are often asked to agree to standard terms and conditions when purchasing goods and services without reading or understanding those terms.

These new provisions are intended to redress the imbalance of bargaining power between consumers and businesses when standard form contracts are used.

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