Williams Andrew: Consumer Law Reform Bill — In CommitteeText is incorporated into the Bound VolumeWilliams Andrew: Consumer Law Reform Bill — In Committee[Sitting date: 03 December 2013. Volume:695;Page:15182. Text is incorporated into the Bound Volume.]ANDREW WILLIAMS (NZ First): I take a call on the Consumer Law Reform Bill on behalf of New Zealand First. New Zealand First is supporting this legislation as we have through its other readings in this House. We are fully supportive of any measures that go towards protecting the New Zealand consumer and beefing up legislation to protect New Zealand citizens and residents.We note that this is also bringing New Zealand consumer law into line with Australian consumer law which we are also very supportive of as so many of our transactions cross the Tasman with so many goods and services going to and from both countries. Therefore it is appropriate that our consumer laws very much line up with theirs. I note however that in the last week we passed an Act in terms of covered bonds. In this House we brought in a 10 percent covered bond regime for the Reserve Bank whereas Australia has an 8 percent regime and that we highlighted last week was an inconsistency. Why would New Zealand adopt a higher threshold than Australia’s? In these areas I think it would be far more advantageous for New Zealand to have far more alignment with many of Australia’s laws rather than going along on our own.In terms of this bill it amends a number of Acts: the Fair Trading Act 1986 the Consumer Guarantees Act the Weights and Measures Act the Carriage of Goods Act the Sale of Goods Act and the Secondhand Dealers and Pawnbrokers Act. It also repeals the Auctioneers Act the Door to Door Sales Act 1967 the Layby Sales Act 1971 and the Unsolicited Goods and Services Act 1975. So quite a number of Acts are either amended or repealed as a result of the Consumer Law Reform Bill which means that a lot of this legislation—some of which was enacted well before the age of the internet before emails and before mobile phones—is being brought into the modern era where so much is now being done electronically.The bill particularly means that online traders who are transacting over the internet will be required to be identified as online traders. Again that is a good move to protect consumers because so often they are not absolutely sure whether the person whom they are dealing with is a private individual or somebody who is actually in a regular online trading activity.The bill ensures that goods are received properly and in good order. Again that will give great relief to the many consumers who always wonder if they are buying over the internet via television offers or whatever it is whether the goods and services that they will receive will be exactly as advertised or shown or promoted to them. So again under this bill the sender is responsible for the goods until the recipient signs that the goods have been received in good order. Again that is good law.It also brings into line standard contract forms to prevent unfair contract terms. That is also modelled on Australian law. It means that there will be much more standardisation of contract forms for consumers so that again they do not end up signing up for things that are on forms that are perhaps not that appropriate or that they do not fully understand. In that respect it is often the most vulnerable in our society the people who can least afford to lose their money or be affected by the loss of the well-earned funds that they have—this will help those innocent consumers who otherwise could be greatly out of pocket and who cannot afford to be in that position.New Zealand First is also pleased to see that penalties will be increased in the case of individuals from $60000 to $200000 and in the case of companies and bodies corporate etc. from $200000 to $600000. Again that sends the right message to people who go into this area and are operating unlawfully or are certainly not honouring what they should be providing to consumers that they do stand a much higher level of penalty for that.The bill also provides for more protection in terms of misleading representation. Again we often purchase what we are not seeing or handling ourselves and then we find that it is not how it was represented. That can be very very disappointing and costly to consumers. So in terms of tidying up all the false or misleading representation again the bill sends the right message that there will be greater protection for the people of New Zealand.It also includes the ability for compulsory product recalls if the Minister of Consumer Affairs steps in and determines that a product should be recalled. Again that is a good move. Quite often we hear of instances where products should have been recalled and the manufacturer or the supplier is reluctant to do so. In that respect it is good that there are greater ministerial powers to step in where consumers or the public are at risk and to provide for compulsory product recalls where appropriate.So in closing New Zealand First supports this bill. We think it is long overdue. We are disappointed that it first came into the House in February 2012 when the Minister was the Hon Chris Tremain. I think there have been one or two Ministers in the seat since then. It is a shame that this area of legislation which protects everyday New Zealanders and everyday citizens has taken the best part of a year and a half to get to the Committee stage and then hopefully to the third reading. It is disappointing that it has taken so long because I think that in this area where the internet is moving so quickly where electronic transactions are moving so quickly and where goods and services in a consumer society are moving at a far more rapid pace it is a shame that the parliamentary pace of this legislation has been so much slower. It should have been quickened up to protect New Zealand consumers. New Zealand First supports this legislation.