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Smokefree Environments and Regulated Products Act 1990

Restrictions on advertising, promotion, sale, and distribution of regulated products - Prohibited ways of supplying and distributing regulated products

33: Free distribution of regulated product prohibited

You could also call this:

"You can't give away regulated products for free or cheap to get more customers."

If you make or sell regulated products, you cannot give them away for free or at a lower price. You also cannot give regulated products to someone else to give away. This rule is to help keep people safe.

If you are a shop that sells regulated products, you cannot give them away for free or at a lower price to help your business. A lower price means the product itself is cheaper, or you get something else for free with it.

There is an exception to this rule for vaping products that are part of a programme to help people stop smoking. If you break this rule without a good reason, you can get a big fine. The fine can be up to $600,000, depending on who you are and what product you gave away.

It is okay if you gave a normal discount, like one you would usually give to customers. You can use this as a defence if you are charged with breaking the rule.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS428454.

Topics:
Health and wellbeing > Public healthCrime and justice > Criminal lawBusiness > Industry rules
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32: Exemption for craft in emergencies, or

"Boats in emergencies don't have to follow some smoking and vaping rules"

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34: Distribution and supply of regulated product with other product prohibited, or

"You can't sell or give away regulated products with other things as a bundle or package."

Part 2Restrictions on advertising, promotion, sale, and distribution of regulated products
Prohibited ways of supplying and distributing regulated products

33Free distribution of regulated product prohibited

  1. A manufacturer, distributor, importer, or retailer of regulated products must not do either of the following free of charge or at a reduced charge:

  2. distribute any regulated product:
    1. supply any regulated product to any person for subsequent distribution.

      1. A retailer of regulated products must not supply free of charge, or at a reduced charge, any regulated product to any person for the purpose of that retailer's business.

      2. For the purposes of this section, a regulated product is distributed or supplied at a reduced charge if—

      3. the charge for the product itself is reduced; or
        1. the charge for distribution or supply of the product is not reduced or purports not to be reduced, but some other item is supplied free of charge or at a reduced charge, together with the product.

          1. Repealed

          2. Subsections (1) and (2) do not apply in relation to vaping products that are distributed or supplied free of charge or at a reduced charge as part of a smoking cessation programme.

          3. A person who, without reasonable excuse, distributes or supplies any regulated product in contravention of subsection (1) or (2) commits an offence and is liable,—

          4. in the case of a manufacturer, an importer, or a distributor,—
            1. to a fine not exceeding $600,000; but
              1. if the contravention relates to a vaping product or smokeless tobacco product, to a fine not exceeding $200,000; and
              2. in the case of a large retailer,—
                1. to a fine not exceeding $200,000; but
                  1. if the contravention relates to a vaping product or smokeless tobacco product, to a fine not exceeding $70,000; and
                  2. in any other case,—
                    1. to a fine not exceeding $50,000; but
                      1. if the contravention relates to a vaping product or smokeless tobacco product, to a fine not exceeding $15,000.

                      2. It is a defence to a charge in respect of a contravention of subsection (1) if the person charged proves that they were merely giving a normal trade discount or normal trade rebate.

                      Notes
                      • Section 33: inserted, on , by section 27 of the Smokefree Environments and Regulated Products (Vaping) Amendment Act 2020 (2020 No 62).
                      • Section 33(4): repealed, on , by section 13 of the Smokefree Environments and Regulated Products Amendment Act (No 2) 2024 (2024 No 53).