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New Zealand law explained for everyone

Building Act 2004

Building product information requirements

362VC: False or misleading representations in relation to building products

You could also call this:

“You can get in big trouble for telling fibs about building stuff you're selling.”

You must not make false or misleading statements about building products when you’re selling them or trying to sell them. This includes making claims you can’t back up. A claim is considered ‘unsubstantiated’ if you don’t have good reasons for making it when you say it, even if it turns out to be true.

When you’re talking about a building product that you’re selling or promoting, you need to be honest. You can’t leave out important information that might change someone’s mind about buying it.

You don’t need to prove every single thing you say about a product. If most people wouldn’t expect you to have proof for a claim, then you don’t need to worry about it being ‘unsubstantiated’.

If you break these rules, you’re committing a crime. If you’re caught and found guilty, you could be fined. If you’re an individual, you might have to pay up to $200,000. If you’re a company, the fine could be as much as $600,000.

Remember, it’s important to be truthful and have evidence for what you say about building products when you’re selling them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS753937.

Topics:
Business > Industry rules
Business > Fair trading
Housing and property > Home safety and repairs
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362VB: Failure to comply with building product information requirements an offence, or

“You can get in trouble if you sell or bring in building products without following the rules about sharing information.”

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362VD: Defences for offences against sections 362VB and 362VC, or

“How you can defend yourself if you're accused of breaking rules about building product information”

Part 4B Building product information requirements

362VCFalse or misleading representations in relation to building products

  1. A person must not, in trade, make a relevant representation about a building product that is—

  2. unsubstantiated; or
    1. false or misleading in a material particular or because of a material omission.

      1. A relevant representation means a representation relating to a building product that is made in connection with—

      2. the supply, or possible supply, of the building product; or
        1. the promotion of the supply of the building product.

          1. A representation is unsubstantiated if, when the representation is made, the person making it does not have reasonable grounds for the representation, irrespective of whether it is false or misleading.

          2. However, subsection (1)(a) does not apply to a representation that a reasonable person would not expect to be substantiated.

          3. A person who fails to comply with subsection (1)—

          4. commits an offence; and
            1. is liable on conviction,—
              1. in the case of an individual, to a fine not exceeding $200,000:
                1. in the case of a body corporate, to a fine not exceeding $600,000.

                Notes
                • Section 362VC: inserted, on , by section 84 of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).