Economic Growth Minister Nicola Willis says that once the changes come into effect, serious offenders will be liable for fines of up to tens of millions of dollars if they have gained significant amounts from breaching the law.
“Legislation to be introduced to Parliament early next year will increase the maximum penalty for breaches of the Fair Trading Act from $600,000 to the highest of three times the value of the commercial gain, the value of the transactions, or $5 million.”
The legislative changes follow an almost 23% rise in the number of fair trading complaints made to the Commerce Commission over the past five years.
The increased penalties will bring New Zealand more into line with comparable jurisdictions overseas, Nicola Willis says.
“In Australia, the maximum financial penalty for breaches of fair trading laws is $A50 million, three times the benefit obtained or 30 per cent of turnover.
“They will also help to ensure businesses who play by the rules are not disadvantaged by competitors using unfair means to woo their customers away from them.
“The existing rules do little to prevent large retailers from further entrenching their market dominance.”
Commerce and Consumer Affairs Minister Scott Simpson says the changes to the Act will ensure greater protection for consumers.
“Between July 2020 and July 2025, the Commerce Commission received more than 48,000 complaints about fair trading issues such as misleading advertising, inaccurate pricing, refund refusals, and subscription traps.
“In some cases, the same businesses have breached the law more than once. These changes will ensure the law provides stronger incentives to comply and stronger consequences for those who don’t.”
New Zealand’s history
Over the past five years, several high-profile cases have highlighted misleading advertising and deceptive practices in New Zealand.
In 2023, One New Zealand (formerly Vodafone) was fined $3.675 million for marketing its FibreX broadband service as fibre-to-the-home when it was actually a hybrid cable service—the largest fine ever under the Fair Trading Act.
The same year, The TV Shop faced charges for posting fake customer reviews, removing negative feedback, and misrepresenting refund and “risk-free trial” options.
In 2022, online retailer 1‑Day was fined $840,000 for promoting “today-only” deals that ran on consecutive days and using countdown timers and false stock-level indicators to pressure buyers.
In 2024, the ticket resale platform Viagogo was found to have misled consumers by implying it was an official seller, exaggerating ticket demand, and obscuring fees.
More recently, Noel Leeming has faced criminal charges for allegedly making misleading “Price Promise” claims, where undisclosed limitations prevented customers from actually obtaining price matches.
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