Fair Trading Act

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Are your discounts legal?


The Commerce Commission has published a reminder to retailers to make sure published discounts are legal and comply with the Fair Trading Act. The Commission has warned that retailers can be guilty of misleading consumers if they:

  • publish was/now pricing, but does not usually charge the "was" price;
  • inflate the price of goods to exaggerate the level of discount;
  • use an "RRP" for comparison purposes where the RRP is not genuinely the usual price;
  • sell products repeatedly or for extended periods at the promotional price while claiming it is a discounted price.

There are potentially big fines for getting this wrong, so it's a good idea to keep an eye on your discounting policies to make sure they comply with the Fair Trading Act. The Commerce Commission has some helpful information on this, so check it out here.



Baffled by advertising laws? We have the guide for you!

One of the more tricky areas to get right when you're running a retail business is pricing and advertising. There are strict rules around what you can do, and harsh penalties if you don't comply.

For this reason, we've produced a guide to help you get this area right. Our advisers have clearly and simply explained what you need to know and there is plenty of practical advice that will be directly relevant to your business.

We hope this guide will be really useful to you and your employees. It's FREE for Retail NZ members (or $29 plus GST for non-members).

Get your copy today by emailing advice@retail.kiwi or request it from our member resource library.


And as always, if you have any specific issues in this area or any other, our Advice Service is here to help and can be contacted by email or phone 0800 472 472 (1800 128 086 from Australia).