Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Unfair conduct - Unfair practices

19: Bait advertising

You could also call this:

“Rules about advertising things for sale at a certain price”

You’re not allowed to advertise goods or services at a certain price if you don’t actually plan to sell them at that price. You also can’t advertise them if you don’t have a good reason to think you can supply them at that price. This applies to both the amount of goods or services and how long you offer them for. You need to think about what’s reasonable for your business and the type of ad you’re using.

If you do advertise goods or services at a specific price, you must offer them for a reasonable time and in reasonable amounts. Again, you need to consider what’s reasonable for your business and the type of ad.

If someone takes you to court because you didn’t offer the goods or services as advertised, you have two ways to defend yourself. You can show that you offered to supply the advertised goods or services (or get someone else to supply them) within a reasonable time, in a reasonable amount, and at the advertised price. If the customer agreed, you must have supplied the goods or services as promised. Or, you can show that you offered to supply similar goods or services right away (or get someone else to supply them soon) in a reasonable amount and at the advertised price. If the customer agreed, you must have supplied these similar goods or services as promised.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM96945.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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Part 1 Unfair conduct
Unfair practices

19Bait advertising

  1. No person shall, in trade, advertise for supply at a specified price goods or services which that person—

  2. does not intend to offer for supply; or
    1. does not have reasonable grounds for believing can be supplied by that person—
        1. at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which the person carries on business and the nature of the advertisement.

      1. Any person who has advertised goods or services for supply at a specified price shall offer such goods or services for supply at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which the person carries on business and the nature of the advertisement.

      2. In a prosecution of any person in relation to a failure to offer goods or services to a person (in this subsection referred to as the customer) in accordance with subsection (2), it is a defence if the person proves that—

      3. he offered to supply, or to procure another person to supply, goods or services of the kind advertised to the customer within a reasonable time, in a reasonable quantity, and at the advertised price and where the offer was accepted by the customer, the person has so supplied or procured another person to supply the goods or services; or
        1. he offered to supply immediately, or to procure another person to supply within a reasonable time, equivalent goods or services to the customer in a reasonable quantity and at the price at which the first-mentioned goods or services were advertised, and, where the offer was accepted by the customer, the person has so supplied, or procured another person to supply, such equivalent goods or services.

          Compare
          • 1969 No 12 s 10(3), (4)