Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Product safety

32: Compulsory product recall

You could also call this:

“The government can force companies to take back unsafe products”

If someone sells goods that don’t meet safety standards or might hurt people, the Minister can make them recall those goods. This means the seller has to take the goods back.

The Minister can also make a seller recall goods if using them in a normal way might hurt someone. When deciding this, the Minister thinks about how likely someone is to get hurt, how bad the injury might be, and how often it might happen. They also look at what the seller has done to make the goods safer and if recalling the goods is good for everyone.

If there’s a warning about some goods, and the seller hasn’t taken them back, the Minister can make them do it.

When the Minister tells a seller to recall goods, they might have to do these things:

  1. Take back the goods
  2. Tell people why the goods aren’t safe
  3. Fix or replace the goods, or give people their money back

The seller must do what the Minister says. After being told to recall goods, the seller can’t sell any more of those goods, especially if they have the same problem that made them unsafe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM96969.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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Part 3 Product safety

32Compulsory product recall

  1. Where a person (in this section referred to as the supplier) has in trade supplied goods which—

  2. do not comply with a product safety standard prescribed in respect of the goods; or
    1. are goods of a kind which will or may cause injury to any person—
        1. and the supplier has not recalled the goods or taken satisfactory action to recall the goods the Minister may, by notice to the supplier, require the supplier to take the action specified in subsection (3).

      1. The Minister may also, by notice to the supplier, require the supplier to take the action specified in subsection (3) if it appears to the Minister that a reasonably foreseeable use (including misuse) of the goods supplied by the supplier will, or may, cause injury to any person.

      2. In deciding whether to issue a notice under subsection (1A), the Minister must have regard to all the circumstances, including—

      3. the likelihood of an injury occurring to a person as a result of the reasonably foreseeable use or misuse of the goods:
        1. the seriousness of the injury likely to be suffered by the user of the goods or any other person:
          1. whether such injury is likely to be a frequent occurrence:
            1. any steps that the supplier or manufacturer of the goods has taken to mitigate the risk of injury:
              1. whether, taking into account the ordinary and intended use of the goods, the public interest favours the issuing of a compulsory product recall notice.

                1. Where a person (in this section referred to as the supplier) has in trade supplied goods which are goods of a kind in relation to which there is in force a notice under section 31(1) or (3), and the supplier has not recalled the goods or taken satisfactory action to recall the goods, the Minister may by notice to the supplier require the supplier to take the action specified in subsection (3).

                2. For the purposes of subsections (1), (1A), and (2), the Minister may require the supplier, in a manner and within a period specified and at his own expense, to do all or any of the following:

                3. recall the goods:
                  1. disclose to the public information relating to—
                    1. the characteristics of the goods which render them unsafe; or
                      1. the circumstances in which use of the goods is unsafe; or
                        1. any other matters relating to the goods or the use of the goods as may be specified:
                        2. repair or replace the goods or refund to any person to whom the goods were supplied or resupplied the price paid for the goods or any lesser amount as may be reasonable having regard to the use that person has had of the goods.

                          1. Where a notice is given to a supplier under this section, that supplier shall comply in all respects with the notice.

                          2. Where a notice is given to a supplier under this section, that supplier shall not, in trade,—

                          3. where the notice identifies a defect in, or a dangerous characteristic of the goods, supply goods of a kind to which the notice relates which contain that defect or have that characteristic; or
                            1. in any other case, supply goods of a kind to which the notice relates.

                              Notes
                              • Section 32(1A): inserted, on , by section 21(1) of the Fair Trading Amendment Act 2013 (2013 No 143).
                              • Section 32(1B): inserted, on , by section 21(1) of the Fair Trading Amendment Act 2013 (2013 No 143).
                              • Section 32(3): amended, on , by section 21(2) of the Fair Trading Amendment Act 2013 (2013 No 143).
                              • Section 32(4): amended, on , by section 21(3) of the Fair Trading Amendment Act 2013 (2013 No 143).
                              • Section 32(5): amended, on , by section 21(4) of the Fair Trading Amendment Act 2013 (2013 No 143).