Labour Promises Law To Stop Businesses ‘Tricking’ Customers With Hidden Costs And Surprise Fees

RNZ
Parliamentary reporters

Labour
is campaigning on a new law to stop businesses “tricking”
people into unnecessary costs.

If elected, Labour
would introduce its “fair go law” to deal with surprise
fees, “worthless” insurance and subscriptions that are
difficult to cancel.

“It’s more than just frustrating,
it’s a real burden on families who are already struggling
with the high cost of living. Labour will put a stop to it,”
leader Chris Hipkins said.

Labour’s law would apply to
cars, electronics, phones, subscriptions, ticket sales, and
gyms, and include:

• banning “junk” car insurance,
  like paint insurance and mechanical breakdown cover with
  many exclusions;
• stopping the “hard sell” of
  extended warranties on electronics and
  whiteware;
• requiring all mandatory fees, including
  on ticket sales, to be included in the upfront
  price;
• making every subscription service and gym
  membership easy to cancel;
• banning “unfair” exit
  fees, excessive notice periods and unclear auto-renewals on
  phone and internet contracts.

Labour’s commerce
and consumer affairs spokesperson Arena Williams said the
proposed law was simple: “Don’t make money by tricking
hardworking
people.”

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