Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Unfair conduct - Unfair contract terms

26A: Unfair contract terms in standard form consumer contracts

You could also call this:

“Rules to stop businesses from using unfair terms in their contracts with customers”

If a court says a term in a standard form consumer contract is unfair, you can’t use that term in your contracts anymore. This means you can’t put the unfair term in new contracts, and you can’t use it in existing contracts, unless the court says it’s okay in a specific way.

This rule doesn’t apply to contracts made before this law started. But if you change or renew an old contract after the law started, it counts as a new contract and the rule applies.

For insurance contracts made before this law started, the rule doesn’t apply to the original contract, any changes to it, or any renewals of it. This is different from other types of contracts.

Remember, these rules are about protecting you from unfair terms in contracts that you didn’t get to negotiate. They’re designed to make sure businesses treat you fairly when they write up contracts.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6410735.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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“Bringing goods with wrong labels into New Zealand is not allowed”

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26B: Unfair contract terms in standard form small trade contracts, or

“Rules about unfair parts in small business contracts”

Part 1 Unfair conduct
Unfair contract terms

26AUnfair contract terms in standard form consumer contracts

  1. If a court has declared, under section 46I, that a term in a standard form consumer contract is an unfair contract term, a person must not—

  2. include the unfair contract term in a standard form contract (unless the term is included in a way that complies with the terms (if any) of the decision of the court); or
    1. apply, enforce, or rely on the unfair contract term in a standard form contract.

      1. The prohibitions in subsection (1) do not apply to any contract entered into before this section comes into force; but if the contract is varied or renewed on or after this section comes into force, the contract must be treated as a new contract for the purposes of subsection (1).

      2. However, in the case only of a contract of insurance (as defined in section 7 of the Insurance (Prudential Supervision) Act 2010) entered into before this section comes into force, the prohibitions in subsection (1) do not apply to—

      3. the contract; or
        1. any variation of the contract; or
          1. any new contract that has the effect of operating as a renewal of the contract, and any subsequent renewal.

            Notes
            • Section 26A: inserted, on , by section 14 of the Fair Trading Amendment Act 2013 (2013 No 143).