Insights & Articles

A recent decision in the High Court of New Zealand has provided the first instance of the Courts using the Fair Trading Act 1986 ("FTA") to declare specific terms in a standard form consumer contract unfair, and therefore unenforceable. The decision in Commerce Commission v Home Direct Limited1 was made pursuant to sections in the FTA which were introduced in 2013 and give the Commerce Commission power to apply to the District Court or High Court for a declaration that a term in a standard form consumer contract is unfair.

The Ministry of Business, Innovation and Employment (MBIE) has released a discussion document late last year, inviting public consultation on an important subject affecting a large sector of New Zealand's working public: self-employed 'independent contractors', and companies and people who engage the services of such independent contractors, not just in the course of business, but even in some cases individual consumers utilising those services, for example ordinary member of the public using a 'ride sharing' platform. The deadline for members of the public to provide their feedback to MBIE expires at 5.00 pm on 14 February 2020.

The Partnership Law Bill was introduced to Parliament in May 2019 as a revision bill, subject to the revision powers set out in s 31 of the Legislation Act 2012. Therefore the 2019 Act does not make any substantive policy changes. Nevertheless, re-enactment of the 111 years old Partnership Act 1908 in contemporary language, style and format is intended to make the law more accessible, clarify Parliament's intent, and reconcile inconsistencies within the old Act.

Real estate agents or salespersons seeking to challenge a Complaints Assessments Committee's finding of unsatisfactory conduct need now to be aware of a shortened appeal period.

From 1 July 2019, changes are being made to all Protection Orders, including those made before this date. The Family Violence Act 2018 repeals and replaces the Domestic Violence Act 1995 and modifies the Care of Children Act 2004 as part of ongoing efforts to tackle domestic violence issues in New Zealand with the aim of providing faster, more effective protection for protected persons and increasing accountability and compliance by respondents.

Section 21 of the Property (Relationships) Act 1976 ("the Act") allows for parties to essentially 'contract out' of the Act and determine how the relationship property would be divided on the off-chance that you and your partner separate.

In Mainzeal1 the former directors were held liable for a breach of section 135 of the Act. Richard Yan, (who was the founder and main shareholder of Mainzeal's parent company, Richina Pacific) was ordered to pay compensation of $36M. Each of the other directors (Shipley, Tilby and Gomm) were held liable to contribute $6M each towards that $36M.

The Minister of Commerce and Consumer Affairs has released the content of a new Code of Professional Conduct for Financial Advice Services that should come into effect in mid-2020. The Code will require those persons who provide regulated financial advice to retail clients to meet certain standards of professional conduct, and will follow the commencement of the Financial Services Legislation Amendment Act 2019 ("FSLA").

Recent decisions of the District Court highlight the need for businesses to adhere to the Fair Trading Act 1986 ("FTA") and not mislead their customers, particularly if their customers are 'consumers' under the Consumer Guarantees Act 1993 ("CGA"). Both decisions involved prosecutions by the Commerce Commission against high profile retailers and resulted in substantial fines being awarded against these retailers.

The General Data Protection Regulation (GDPR) came into force on 25 May 2018. Even though this is a European Union regulation, it potentially has significant implications for New Zealand businesses. Technology has enabled New Zealand businesses to operate on a truly global scale and businesses collect, process and use data from all corners of the world.

Many modern businesses consist primarily of technology in the form of intellectual property. Although they may own physical assets and employ staff (though they are more likely to be engaged as contractors) the real value in the business sits almost wholly in the intellectual property developed.

From 6 May 2019 employers who have failed to record their individual employment agreements in writing will be liable for an infringement offence under the Employment Relations (Infringement Offences) Regulations 2019.