Photo credit: www.consumeraffairs.govt.nz
From June 2014, advertisers in NZ must not make unsubstantiated claims. GoodSense supports this move to more transparent advertising.
As the Ministry of Business, Innovation and Employment says, prior to the law change, the Commerce Commission had to investigate any complaints about misleading promotions themselves before taking legal action. This took a long time, was a cost to tax payers and meant the Commerce Commission could only act very selectively. Companies like Dole often took months to send evidence and could continue making misleading claims during this time.
From 17 June, the Commerce Commission has been able to demand advertisers provide evidence that substantiates their claims. If the seller cannot provide this, the Commerce Commission will be able to warn consumers and take action against the seller sooner.
We understand this can put pressure on smaller competitors but think the public has a right to a precautionary approach to claims and that we all have a responsibility to be able to back up what we say. It’s also good business; honesty and transparency sell.
If you’d like to talk over the implications for your own marketing please call Kath Dewar on 09 973 0960.