The Commerce Commission is pleased with moves being taken to amend the Fair Trading Act's three year limitation period.
Commission Chairman Peter Allport said that changes proposed by Minister of Consumer Affairs Robyn McDonald would, in effect, extend the limitation period for civil cases.
"This issue has concerned the Commission for some years," Mr Allport said. "We are delighted that a Bill to change the civil period has at last been drafted. We are hopeful that similar changes will soon be proposed for the criminal limitation period under this Act.
"Changing the limitation period will help promote healthy competition. It will not only better protect consumers, but it will also help protect businesses who might be disadvantaged by competitors using false or misleading information."
As the Act stands today, court action - be it criminal or civil - must start within three years of the offending behaviour occurring or the false or misleading claim being made.
"Our view has been that the three years starts from the wrong time," Mr Allport said. "It should start from when the problem could be discovered by the consumer, and I am delighted that this is the change that has been proposed by the Minister."
In cases involving, in particular, housing, insurance, retirement funds, franchises, investments and to a lesser extent guarantees, people will seldom have any idea that they have a problem until well after three years from their purchase or investment.
When that happens - and that is often - neither the people involved, the Commission nor anyone else can, at present, take action under this Act.
If Parliament accepts the amendment, then people will have three years from when they could discover the problem to take civil action.
The Commission believes that the same should apply to criminal action under this Act.
Media contact: Fair Trading Manager Rachel Leamy
Phone work (04) 498 0908
Communications Officer Vincent Cholewa
Phone work (04) 498 0920
Commission media releases can be viewed on its website www.comcom.govt.nz
