Changes to the Fair Trading Act...

The law on Fair Trading is changing to introduce new prohibitions from 16 August 2022.

Unconscionable conduct will become an offence punishable by a fine of up to $600,000 for a business and $200,000 for an individual.

Unconscionable conduct is not defined, but could include things like unfair pressure, unfair tactics, undue influence and acting in bad faith.  These can take into account the disparity of bargaining power between the trader and customer, whether the customer was able to understand the terms of the documents provided and what pressure or tactics were used.

The offence will apply whether it is a one off or pattern of conduct, whether or not any individual is disadvantaged and whether or not any customer enters into any contract.

Small trade contracts up to $250,000 per annum will also be covered by the unfair contract provision (currently only applying to consumers).

Direct sales salespeople can be directed not to enter premises by residents.  Importantly this includes by putting a written notice on the gate e.g. “No Salespeople”.

Breaching the notice can result in fines up to $30,000 for a business or $10,000 for individuals. 

If a salesperson is directly told not to enter/or told to leave they may not enter the premises within two years.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.