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Commerce Act 1986

Regulated goods or services - Preliminary provisions

52A: Purpose of Part

You could also call this:

"Helping consumers by making suppliers do what's best for them"

Illustration for Commerce Act 1986

The purpose of this part of the law is to help consumers by making sure suppliers of certain goods or services do things that are good for consumers. You want suppliers to have reasons to innovate and invest in new things, and to improve how they do things so they can provide good services. This part of the law also wants suppliers to share the benefits of being more efficient with consumers, such as by lowering prices, and not be able to make too much profit. This purpose applies instead of another purpose mentioned in section 1A, which is about the overall goal of this law. The law talks about markets mentioned in section 52, which is another part of this law that explains what kinds of markets this applies to.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1685404.

Topics:
Money and consumer rights > Consumer protectionBusiness > Fair trading
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52: Overview of Part, or

"Controlling prices and quality when there's not much competition"

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52B: Outline of Part, or

"What this part of the law covers: rules for goods and services that are regulated."

Part 4Regulated goods or services
Preliminary provisions

52APurpose of Part

  1. The purpose of this Part is to promote the long-term benefit of consumers in markets referred to in section 52 by promoting outcomes that are consistent with outcomes produced in competitive markets such that suppliers of regulated goods or services—

  2. have incentives to innovate and to invest, including in replacement, upgraded, and new assets; and
    1. have incentives to improve efficiency and provide services at a quality that reflects consumer demands; and
      1. share with consumers the benefits of efficiency gains in the supply of the regulated goods or services, including through lower prices; and
        1. are limited in their ability to extract excessive profits.

          1. In this Part, the purpose set out in subsection (1) applies in place of the purpose set out in section 1A.

          Notes
          • Section 52A: inserted, on , by section 4 of the Commerce Amendment Act 2008 (2008 No 70).