Fair Trading Act 1986

2: Interpretation

You could also call this:

“Understanding important words and phrases used in the Fair Trading Act”

This section of the Fair Trading Act 1986 explains the meaning of important terms used in the law. Here’s a simple explanation of some key points:

‘Acquire’ means to get something, whether you buy it, receive it as a gift, or rent it. This applies to goods, services, and land.

‘Advertisement’ refers to any message meant to promote goods, services, or property for sale to the public.

‘Business’ includes any activity where goods or services are bought or sold, even if it’s not for profit.

‘Consumer’ is someone who buys goods or services for personal use, not for reselling or using in a business.

‘Goods’ includes all types of personal property, from physical items to electricity and computer software.

‘Services’ covers a wide range of activities, including professional work, accommodation, entertainment, banking, and insurance.

‘Supply’ means to provide goods or services to someone else, whether by selling, giving, or renting them.

‘Trade’ refers to any business activity related to buying or selling goods, services, or property.

The law also defines terms related to contracts, like ‘consumer contract’ and ‘unfair contract term’, which are important for understanding your rights when making agreements with businesses.

Remember, these definitions help to make sure everyone understands what the law means when it uses these terms.

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 It might be out of date or be missing some parts.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=DLM96444.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection

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1A: Purpose, or

“This law makes sure trading is fair for everyone in New Zealand”


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2A: Transitional, savings, and related provisions, or

“Rules for smooth changes when the Act is updated”

2Interpretation

  1. In this Act, unless the context otherwise requires,—

    acquire,—

    1. in relation to goods, includes obtain by way of gift, purchase, or exchange; and also includes take on lease, hire, or hire purchase:
      1. in relation to services, includes accept:
        1. in relation to interests in land, includes obtain by way of gift, purchase, exchange, lease or licence and acquisition has a corresponding meaning

          advertisement means any form of communication made to the public or a section of the public for the purpose of promoting the supply of goods or services or the sale or granting of an interest in land

            auction has the meaning given in section 36X

              business means any undertaking—

              1. that is carried on whether for gain or reward or not; or
                1. in the course of which—whether free of charge or not
                  1. goods or services are acquired or supplied; or
                    1. any interest in land is acquired or disposed of—

                    chief executive means the chief executive of the Ministry

                      Commission means the Commerce Commission established by section 8 of the Commerce Act 1986

                        consumer means a person who—

                        1. acquires from a supplier goods or services of a kind ordinarily acquired for personal, domestic, or household use or consumption; and
                          1. does not acquire the goods or services, or hold himself or herself out as acquiring the goods or services, for the purpose of—
                            1. resupplying them in trade; or
                              1. consuming them in the course of a process of production or manufacture; or
                                1. in the case of goods, repairing or treating, in trade, other goods or fixtures on land

                                consumer contract means a contract,—

                                1. in the case of a contract relating to goods or services, between—
                                  1. at least 1 supplier supplying the goods or services in trade; and
                                    1. at least 1 consumer; and
                                    2. in the case of a contract relating to the sale or grant of an interest in land, between—
                                      1. at least 1 person disposing, in trade, of an interest in the land; and
                                        1. at least 1 person acquiring an interest in the land for personal, domestic, or residential purposes

                                        credit instrument means any agreement (whether in writing or not) acknowledging an obligation to pay a sum or sums of money on demand or at any future time or times

                                          document means a document in any form whether signed or initialled or otherwise authenticated by its maker or not; and includes—

                                          1. any writing on any material:
                                            1. any information recorded or stored by means of any tape recorder, computer, or other device; and any material subsequently derived from information so recorded or stored:
                                              1. any label, marking, or other writing that identifies or describes any thing of which it forms part, or to which it is attached by any means:
                                                1. any book, map, plan, graph, or drawing:
                                                  1. any photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced

                                                    extended warranty agreement has the meaning given in section 36T

                                                      goods

                                                      1. means personal property of every kind (whether tangible or intangible); and
                                                        1. includes—
                                                          1. ships, aircraft, and vehicles:
                                                            1. animals, including fish:
                                                              1. minerals, trees, and crops, whether on, under, or attached to land or not:
                                                                1. gas and electricity:
                                                                  1. to avoid doubt, water and computer software

                                                                  infringement fee, infringement notice, and infringement offence have the meanings given in section 40B

                                                                    layby sale agreement has the meaning given in section 36B

                                                                      local authority includes every local authority and every public body or other authority created by or pursuant to any public Act or local Act

                                                                        Minister means the Minister of Consumer Affairs

                                                                          Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

                                                                            negotiation, in relation to an agreement or a proposed agreement, includes any discussion or dealing directed towards making the agreement or proposed agreement (whether or not the terms of the agreement or proposed agreement are open to any discussion or dealing)

                                                                              official standard means—

                                                                              1. a New Zealand Standard within the meaning of section 4(1) of the Standards and Accreditation Act 2015; or
                                                                                1. a standard specification prescribed by a body, organisation, or association having or performing similar functions to those of the NZ Standards Organisation (as that term is defined in the Standards and Accreditation Act 2015)

                                                                                  person includes a local authority, and any association of persons whether incorporated or not

                                                                                    place includes any premises, building, aircraft, ship, carriage, vehicle, box, or receptacle

                                                                                      price includes valuable consideration in any form, whether direct or indirect; and includes any consideration that in effect relates to the acquisition or supply of goods or services or the acquisition or disposition of any interest in land, although ostensibly relating to any other matter or thing

                                                                                        residential premises means a building, or part of a building, that is a house, flat, town house, home unit, or similar dwelling erected, or currently used, mainly as a residence, and any land, improvements, or appurtenances belonging to the dwelling or usually enjoyed with it

                                                                                          services includes any rights (including rights in relation to, and interests in, real or personal property), benefits, privileges, or facilities that are or are to be provided, granted, or conferred and, without limiting the generality of the foregoing, also includes the rights, benefits, privileges, or facilities that are or are to be provided, granted, or conferred under any of the following classes of contract:but does not include rights or benefits in the form of the supply of goods or the performance of work under a contract of service

                                                                                          1. a contract for, or in relation to,—
                                                                                            1. the performance of work (including work of a professional nature), whether with or without the supply of goods; or
                                                                                              1. the provision of, or the use or enjoyment of facilities for, accommodation, amusement, the care of persons or animals or things, entertainment, instruction, parking, or recreation; or
                                                                                                1. the conferring of rights, benefits, or privileges for which remuneration is payable in the form of a royalty, tribute, levy, or similar exaction:
                                                                                                  1. to avoid doubt, the supply of electricity, gas, telecommunications, or water, or the removal of waste water:
                                                                                                  2. a contract of insurance, including life assurance, and life reassurance:
                                                                                                    1. a contract between a bank and a customer of the bank:
                                                                                                      1. any contract for, or in relation to, the lending of money or granting of credit, or the making of arrangements for the lending of money or granting of credit, or the buying or discounting of a credit instrument, or the acceptance of deposits;—

                                                                                                        small trade contract has the meaning given in section 26C

                                                                                                          standard form consumer contract means a consumer contract that a court, in the course of proceedings for a declaration under section 46I, and in accordance with section 46J, determines is a standard form contract

                                                                                                            standard form small trade contract means a small trade contract that a court, in the course of proceedings for a declaration under section 46I, and in accordance with section 46J, determines is a standard form contract

                                                                                                              supply—and supply as a noun, supplied, and supplier have corresponding meanings

                                                                                                              1. in relation to goods, includes supply (or resupply) by way of gift, sale, exchange, lease, hire, or hire purchase; and
                                                                                                                1. in relation to services, includes provide, grant, or confer;—

                                                                                                                  trade means any trade, business, industry, profession, occupation, activity of commerce, or undertaking relating to the supply or acquisition of goods or services or to the disposition or acquisition of any interest in land

                                                                                                                    transparent, in relation to a term in a contract, means a term that—

                                                                                                                    1. is expressed in reasonably plain language; and
                                                                                                                      1. is legible; and
                                                                                                                        1. is presented clearly; and
                                                                                                                          1. is readily available to any party affected by the term

                                                                                                                            unfair contract term means a term in a consumer contract or small trade contract that a court has declared, under section 46I, is an unfair contract term

                                                                                                                              uninvited direct sale agreement has the meaning given in section 36K

                                                                                                                                unsolicited goods has the meaning given in section 21A(7)

                                                                                                                                  unsolicited services has the meaning given in section 21B(2).

                                                                                                                                  1. In this Act, a reference to engaging in conduct shall be read as a reference to doing or refusing to do an act, and includes,—

                                                                                                                                  2. omitting to do an act; or
                                                                                                                                    1. making it known that an act will or, as the case may be, will not be done.
                                                                                                                                      1. In this Act—

                                                                                                                                      2. a reference to the acquisition of goods includes a reference to the acquisition of property in, or rights in relation to, goods, in pursuance of a supply of the goods:
                                                                                                                                        1. a reference to the supply or acquisition of goods or services includes a reference to agreeing to supply or acquire goods or services:
                                                                                                                                          1. a reference to the supply or acquisition of goods includes a reference to the supply or acquisition of goods together with other property or services or both:
                                                                                                                                            1. a reference to the supply or acquisition of services includes a reference to the supply or acquisition of services together with property or other services or both:
                                                                                                                                              1. a reference to the resupply of goods acquired from a person includes a reference to—
                                                                                                                                                1. a supply of goods to another person in an altered form or condition; and
                                                                                                                                                  1. a supply to another person of other goods in which the goods have been incorporated.
                                                                                                                                                  Notes
                                                                                                                                                  • Section 2(1) auction: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) chief executive: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) Commission: amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
                                                                                                                                                  • Section 2(1) consumer: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) consumer contract: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) court: repealed, on , by section 6(1) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) extended warranty agreement: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) goods: substituted, on , by section 3(1) of the Fair Trading Amendment Act (No 2) 2003 (2003 No 34).
                                                                                                                                                  • Section 2(1) infringement fee, infringement notice, and infringement offence: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) layby sale agreement: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) Ministry: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) negotiation: inserted, on , by section 6(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) officer of the Commission: repealed, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
                                                                                                                                                  • Section 2(1) official standard: inserted, on , by section 2 of the Fair Trading Amendment Act 1997 (1997 No 43).
                                                                                                                                                  • Section 2(1) official standard paragraph (a): amended, on , by section 45(1) of the Standards and Accreditation Act 2015 (2015 No 91).
                                                                                                                                                  • Section 2(1) official standard paragraph (b): amended, on , by section 45(1) of the Standards and Accreditation Act 2015 (2015 No 91).
                                                                                                                                                  • Section 2(1) place: inserted, on , by section 2 of the Fair Trading Amendment Act 1990 (1990 No 42).
                                                                                                                                                  • Section 2(1) residential premises: inserted, on , by section 4(1) of the Fair Trading Amendment Act 2021 (2021 No 32).
                                                                                                                                                  • Section 2(1) services paragraph (a)(iv): added, on , by section 3(2) of the Fair Trading Amendment Act (No 2) 2003 (2003 No 34).
                                                                                                                                                  • Section 2(1) small trade contract: inserted, on , by section 4(1) of the Fair Trading Amendment Act 2021 (2021 No 32).
                                                                                                                                                  • Section 2(1) standard form consumer contract: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) standard form small trade contract: inserted, on , by section 4(1) of the Fair Trading Amendment Act 2021 (2021 No 32).
                                                                                                                                                  • Section 2(1) transparent: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) unfair contract term: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) unfair contract term: amended, on , by section 4(2) of the Fair Trading Amendment Act 2021 (2021 No 32).
                                                                                                                                                  • Section 2(1) uninvited direct sale agreement: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) unsolicited goods: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                                                                                                                                                  • Section 2(1) unsolicited services: inserted, on , by section 6(3) of the Fair Trading Amendment Act 2013 (2013 No 143).