New Zealand Government Moves to Toughen Penalties for Misleading Advertising

New Zealand’s Finance and Commerce and Consumer Affairs Ministers have announced the Government’s plans to introduce legislation in early 2026 that will significantly raise maximum penalties for breaches of the Fair Trading Act 1986.  The Fair Trading Act prohibits misleading or deceptive conduct, including through advertising, among other things.  It is proposed that penalties will increase from NZ$200,000 for individuals and NZ$600,000 for corporations to the greater of:

1. NZ$1 million for individuals or NZ$5 million for corporations;
2. Three times the value of commercial gain made or loss avoided; or
3. The value of consideration for the transaction.

These reforms would bring New Zealand closer to the penalty regime in other comparable jurisdictions, including Australia.  For businesses operating or planning to operate in New Zealand, these changes highlight the importance of having robust compliance frameworks in place.  As the stakes for breaches become higher, businesses should review contract terms, marketing practices, and governance policies to mitigate risk ahead of the proposed penalties regime being introduced.

If you have any questions about the changes or New Zealand consumer law, please get in touch with our Advertising and Promotions team at Hesketh Henry.

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.