Unfair Terms in Standard Form Consumer Contracts

This paper explores the amendments to the Fair trading Act 1986 introducing provisions preventing the use of unfair terms in standard form consumer contracts. The amendments are drafted in close line with Australian federal and state legislation addressing unfair terms. This paper outlines the provisions, identifies two key differences between the Australian and New Zealand legislation, and argues that as a result of those differences the protection will not be effective. The ultimate conclusion reached is that consumers in New Zealand are now protected from unfair terms within standard form contracts in form but not substance