Lotu-Iiga Peseta Sam: Consumer Guarantees Amendment Bill — First Reading 
Lotu-Iiga Peseta Sam: Consumer Guarantees Amendment Bill — First Reading 
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PESETA SAM LOTU-IIGA (National—Maungakiekie) 
: 
 I rise to speak to the Consumer Guarantees Amendment Bill which has been presented to the House by my colleague Dr Jackie Blue. I commend her for bringing this bill to the House. It is a bill that is welcome. It is overdue as Dr Blue stated in her speech to this House and I support it. I preface my comments by saying that this National-led Government is committed to promoting an environment where consumers may make purchases knowing that their consumer rights are protected. That is particularly important. This National-led Government is also about enacting effective consumer laws to develop a competitive business environment where both consumers and businesses can engage with each other with trust and confidence. We are about enacting laws that help to build a more productive and innovative economy. That is what this Government stands for. 
I welcome the Labour’s support for this bill; that is to be commended. It is the only member’s bill tonight I believe that enjoys multiparty and cross-party support and we welcome Labour members’ support for the bill. As has been stated by the previous two speakers it amends the Consumer Guarantees Act 1993 in two specific areas: first in relation to extended warranties and second in relation to the supply of goods and services by businesses through a competitive bidding process using an online trading facility. The latter issue was discussed in the Commerce Committee earlier during this term with regard to motor vehicle sales and the conclusion that we came to was consistent with what Dr Blue is suggesting in this bill. 
The main provisions of the bill provide that consumers are to be informed about whether an extended warranty they are considering purchasing provides any benefit right or convenience that is greater than their rights under the Act. That is important. But the other clause in the bill that has not been mentioned is that it provides for a cooling-off period of 7 days once an extended warranty has been purchased. That allows consumers to reconsider whether to continue with the extended warranty. If they decide not to continue with it within that cooling-off period they may cancel the extended warranty and they will be provided with a full refund. In terms of competitive online auctions this bill protects those consumers who for example buy a sofa online in a competitive bidding process. That would attract the same Consumer Guarantees Act rights as if that sofa was bought at a national retail store of the same supplier. This bill means that consumers and suppliers will have confidence in market rules and that is really important. They will have confidence that when they buy a product or service their reasonable expectations about that product or service will be met. In such circumstances the consumer must understand that if those expectations are not met their rights will be maintained and asserted. 
We have heard about the success story of modern New Zealand that is online trading through TradeMe. This bill will address a lot of the anomalies that occur through online trading where dishonest professional sellers are using the legal loophole to sell goods without having any fear of being held to account. This bill will protect the rights of those consumers. 
The bill is also about extended warranties for goods that are sold. Those extended warranties started being sold for electrical goods but they now cover a whole range of items including home appliances furniture and the like. Often when consumers buy an extended warranty they are likely to pay for the protection that they are already entitled to and that must be clear at the time of purchase. 
I support this bill because ultimately it is about enhancing the rights of consumers and about ensuring that consumers receive the protection they deserve under the Consumer Guarantees Act. Thank you.