Unsubstantiated representations under the Fair Trading Act: An analysis

Section 12A of the Fair Trading Act 1986 was recently inserted following the passage of the Consumer Law Reform Bill in 2013, and came into force on 17 June 2014. The provision introduces a general prohibition on unsubstantiated representations being made by anyone promoting goods and services in trade. As the provision is only a year old, the Commerce Commission have not yet brought any cases on the provision before the courts. A body of case law examining the effects arising from this amendment has therefore not yet been developed. This paper seeks to analyse the effects which have been brought about by established substantiation policies in other jurisdictions, in order to provide a number of possible outcomes which may arise in New Zealand following the introduction of s 12A. It also considers whether there is a need to specifically regulate unsubstantiated representations in New Zealand and if so whether a general prohibition is the best approach. In conclusion, both queries are answered in the affirmative as the overall benefits of implementing a general prohibition against unsubstantiated claims will likely contribute beneficially to New Zealand’s economy

Class arbitrations in New Zealand

While class arbitrations have been a popular source of debate in the United States, it is not often in the context of New Zealand law. Class arbitrations can be a useful in some factual examples, such as consumer claims against companies. However, there are also arguments that class arbitration changes the nature of arbitration. Furthermore, it is worth considering how well class arbitrations would work in jurisdictions where class actions are not popular, such as New Zealand. This paper analyses the reasons for and against class arbitrations, posed in the context of consumer claims. It will first set out the background of class arbitrations and the landscape of consumer claims in a globalised world, before moving on to a comparison of arguments for and against class arbitration. It then ties these arguments back into the consumer claims context and asks whether class arbitration is the right solution for resolving these disputes, and if not, whether there are any conclusions. It will conclude that class arbitration is a process that may yield useful results, if carried out according to a carefully constructed process

Unsubstantiated representations under the Fair Trading Act: An analysis

Section 12A of the Fair Trading Act 1986 was recently inserted following the passage of the Consumer Law Reform Bill in 2013, and came into force on 17 June 2014. The provision introduces a general prohibition on unsubstantiated representations being made by anyone promoting goods and services in trade. As the provision is only a year old, the Commerce Commission have not yet brought any cases on the provision before the courts. A body of case law examining the effects arising from this amendment has therefore not yet been developed. This paper seeks to analyse the effects which have been brought about by established substantiation policies in other jurisdictions, in order to provide a number of possible outcomes which may arise in New Zealand following the introduction of s 12A. It also considers whether there is a need to specifically regulate unsubstantiated representations in New Zealand and if so whether a general prohibition is the best approach. In conclusion, both queries are answered in the affirmative as the overall benefits of implementing a general prohibition against unsubstantiated claims will likely contribute beneficially to New Zealand’s economy