Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Unfair conduct - Unsubstantiated representations

12A: Unsubstantiated representations

You could also call this:

“Don't make claims about things you're selling without proof”

When you’re selling goods or services, or promoting land for sale, you must not make claims that you can’t back up. This means you need to have good reasons for any statements you make about what you’re selling or promoting. Even if what you’re saying isn’t false or misleading, it’s not okay to make claims without evidence to support them.

However, you don’t need to prove every single thing you say. If most people wouldn’t expect you to have proof for a particular statement, then it’s okay to say it without evidence.

When we talk about ‘representations’ in this law, we mean any statements or claims made about goods, services, or land. These could be made when you’re selling something, or when you’re advertising or promoting it in any way.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156605.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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12: Misleading conduct in relation to employment, or

“Be honest about jobs and don't trick people looking for work”

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12B: Court must have regard to certain matters, or

“The court considers all the details when someone makes a claim without proof”

Part 1 Unfair conduct
Unsubstantiated representations

12AUnsubstantiated representations

  1. A person must not, in trade, make an unsubstantiated representation.

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

  3. This section does not apply to a representation that a reasonable person would not expect to be substantiated.

  4. In this section and sections 12B to 12D, representation means a representation that is made—

  5. in respect of goods, services, or an interest in land; and
    1. in connection with—
      1. the supply or possible supply of the goods or services; or
        1. the sale or grant or possible sale or grant of the interest in land; or
          1. the promotion by any means of the supply or use of the goods or services or the sale or grant of the interest in land.

          Notes
          • Section 12A: inserted, on , by section 10 of the Fair Trading Amendment Act 2013 (2013 No 143).