Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Unfair conduct - Unconscionable conduct

7: Unconscionable conduct

You could also call this:

“Businesses must always act fairly and reasonably when dealing with customers”

You must not behave in a way that is extremely unfair or unreasonable when you are doing business. This rule applies in all situations, even if it only happens once, or if no one specific person is hurt by it. It doesn’t matter if a contract is signed or not. The law can still say your actions were unfair, even if other rules don’t.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS736890.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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“How courts decide if actions are unfair”

Part 1 Unfair conduct
Unconscionable conduct

7Unconscionable conduct

  1. A person must not, in trade, engage in conduct that is unconscionable.

  2. This section applies whether or not—

  3. there is a system or pattern of unconscionable conduct; or
    1. a particular individual is identified as disadvantaged, or likely to be disadvantaged, by the conduct; or
      1. a contract is entered into.

        1. This section is not limited by any rule of law or equity relating to unconscionable conduct.

        Notes
        • Section 7: inserted, on , by section 6 of the Fair Trading Amendment Act 2021 (2021 No 32).