Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Unfair conduct - Unfair practices

21: Demanding or accepting payment without intending to supply as ordered

You could also call this:

“It's against the law to take money for things you don't plan to give”

You are not allowed to ask someone for money or anything else for goods or services if you:

  1. Don’t plan to give them the goods or services at all.
  2. Plan to give them something very different from what they’re paying for.
  3. Don’t have a good reason to think you can give them the goods or services when you said you would, or in a fair amount of time if you didn’t say when.

This rule is part of making sure people trade fairly with each other. It stops people from trying to get money by promising things they can’t or won’t deliver.

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 It might be out of date or be missing some parts.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=DLM96947.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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20: Referral selling, or

“You can't make someone buy things by promising rewards for finding new customers”

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21A: Liability of recipient of unsolicited goods, or

“What happens if you get stuff you didn't ask for in the mail”

Part 1 Unfair conduct
Unfair practices

21Demanding or accepting payment without intending to supply as ordered

  1. No person shall demand or accept payment or other consideration for goods or services, if at the time of the demand or acceptance that person—

  2. does not intend to supply the goods or services; or
    1. intends to supply goods or services materially different from the goods or services in respect of which the payment or other consideration is demanded or accepted; or
      1. does not have reasonable grounds to believe that that person will be able to supply the goods or services within any specified period; or if no period is specified, within a reasonable time.