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Labour is promising to stop companies from ‘heaping on extra fees, trapping people in subscriptions, and pushing unnecessary costs onto New Zealanders’ if elected

Personal Finance / news
Labour is promising to stop companies from ‘heaping on extra fees, trapping people in subscriptions, and pushing unnecessary costs onto New Zealanders’ if elected
A composite image of an old computer overlayed with scribbles, an animated hour glass and shopping basket, and a sign up sign with an arrow logo.
Composite image source: 123rf.com and interest.co.nz

Labour is pledging to make sure New Zealanders “get a fair deal at the checkout” by going after hidden fees, subscription traps and companies “heaping on extra fees” as it targets high cost of living issues.

Launching its Fair Go Law on Thursday, Labour leader Chris Hipkins says New Zealanders are being hit by hidden fees they never saw coming.

“We’ve all been there before. The gym membership with surprise fees. The meal kit subscription that’s impossible to cancel. The worthless insurance on your new car.”

Hipkins says it’s more than 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.”

If elected to government in November's election, Labour will: 

  • Ban what it calls “junk” car insurance such as paint insurance and mechanical breakdown cover “that excludes almost everything”
  • Stop the “hard sell” of extended warranties on electronics and whiteware at the checkout
  • Require all mandatory fees, including ticket sales, to be included in the price upfront
  • Make every subscription service and gym membership as easy to cancel as it was to sign up
  • Ban “unfair” exit fees on phone and internet contracts, show the full price upfront, plus “excessive” notice period and “unclear” auto-renewals

“Labour will make sure New Zealanders get a fair deal at the checkout.”

Labour commerce and consumer affairs spokesperson Arena Williams says the party’s Fair Go Law will bring in new rules for cars, electronics, phones, subscriptions, ticket sales and gyms.

"People aren't asking for much. Just tell them the real price upfront and make it as easy to leave a subscription or membership as it was to join.

"And those extended warranties? In many cases, what they cover is already your right under the Consumer Guarantees Act."

Labour’s latest policy builds on its price gouging ban proposal.

"Whether it's the price on the shelf or the fees piled on top, too many Kiwis are being ripped off," Williams says.

"You deserve a fair go. Christopher Luxon is too out of touch to see how hidden fees quickly add up, but Labour will act."

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1 Comments

I like to think I'm reasonably internet savvy but I did succumb to one of those subscription scams while trialing a 'free' pdf editor. It was only by chance I noticed they were debiting my credit card every month. The outfit was based in Spain, difficult to communicate with. Had to cancel the card, was a real pita.

So this is welcome policy.

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