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Fair Trading Act 1986

Unfair conduct - Unfair practices

22: Misleading representations about certain business activities

You could also call this:

"Don't make false claims about a business to trick people into investing."

Illustration for Fair Trading Act 1986

You must not make false or misleading claims about how well a business will do or how risky it is. This includes claims about businesses that can be run from your home. You cannot make false claims about how much money you can make or how safe an investment is when you are asking people to invest money and work in a business.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM96948.

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Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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Part 1Unfair conduct
Unfair practices

22Misleading representations about certain business activities

  1. No person shall make a representation that is false or misleading in a material particular concerning the profitability or risk or any other material aspect of any business activity that that person represents as one that can be, or can be to a substantial extent, carried on at or from a person's place of residence.

  2. No person who invites, whether by advertisement or otherwise, persons to engage or participate, or to offer or apply to engage or participate, in a business activity requiring—

  3. the performance by the persons concerned of work; or
    1. the investment of money by the persons concerned and the performance by them of work associated with the investment—
        1. shall make, with respect to the profitability or risk or any other material aspect of the business activity, a representation that is false or misleading in a material particular.

      Compare
      • 1975 No 113 s 48B
      • 1979 No 40 s 23