One of New Zealand’s key pieces of consumer protection legislation, the Fair Trading Act, has upcoming changes that will impact you as direct sellers if your salespeople still go door-to-door.

From 16 August 2022, you could face a fine of between $10,000 and $30,000 if you do not comply with a customer’s direction not to enter their residence, or to leave if you are directed to.

A salesperson must not enter a premises if there is a generally worded notice on the gate or front door of a residence directing salespeople not to call.

A salesperson must leave the premises as soon as possible once directed to do so, by anyone residing at the premises or anyone acting with the authority of the resident.

The direction to leave or not to enter may be in verbal, written or visual form, and must be audible or visible, or a specific face-to-face spoken direction.

A salesperson issued with a specific direction must not enter or re-enter the residence within two years after the direction is given.

In addition to the fine, if prosecuted, the Court could also impose other consequences, such as an order to cancel or vary the relevant sales contract, to pay for compensation for loss/damage suffered, or to prevent you from entering the residence.

Further details can be read from the Bill here.

Next Steps

If your direct selling business permits or encourages door-to-door selling, now is a good time to think about whether your salespeople are aware of the new requirements, and whether training is necessary to ensure compliance with these upcoming changes. It would also be prudent to conduct a review of your policies and procedures documents to ensure they don’t breach the new rules.

Please get in touch with us if you have any questions about the changes and how they might affect your business, or if you have documents you need reviewing for compliance.

Special thanks to Juliet Bing-Harmon for her assistance in writing this article.