WELLINGTON, Dec. 17 (Xinhua) -- Unfair business practices in New Zealand are being targeted in new legislation introduced to Parliament on Tuesday, as the impacts of unfair business and commercial practices can be significant for small businesses and consumers.
The Fair Trading Amendment Bill will make two major changes to better protect consumers and businesses, with the first set of changes to "prohibit conduct that is unconscionable," Commerce and Consumer Affairs Minister Kris Faafoi said in a statement.
"This is effectively serious misconduct that goes far beyond what is commercially necessary or appropriate," Faafoi said, adding businesses that are found to act unconscionably will face fines of up to 600,000 NZ dollars (394,491 U.S. dollars).
The second set of changes extend existing protections against unfair contract terms in standard form consumer contracts so they also apply to business-to-business trading relationships with a value below 250,000 NZ dollars per year, Faafoi said.
These changes to the Fair Trading Act will draw a line in the sand about acceptable standards of commercial conduct in New Zealand, he added.
The government has clear expectations that business practices will be conducted fairly and reasonably. At the same time, honest businesses should have no cause for concern about these changes, Faafoi said, adding the changes will improve protections for consumers against mobile traders and predatory loan shark behavior.
The Fair Trading Amendment Bill will have its first reading early in 2020.
"I've heard too many stories about one-sided contracts, extended payment terms, and pressure tactics that are hurting small businesses and consumers," said Small Business Minister Stuart Nash.
"Unfair practices make it hard for New Zealand businesses to focus on what really matters - developing their products and services, innovating, and growing their business. It also leads to real hardship for consumers," Nash said.
