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The Ministry |
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Defining A Consumer | |
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The Ministry's purpose is to work with consumers and business to promote a fair and informed market place for consumers
We take an integrated approach to our activities
The emphasis is on balanced advice
... promoting consumer perspectives
programmes are targeted at those who are less educated, less informed, or less articulate
... resources on consumer issues
... resources to inform traders of their rights and obligations
... promoting compliance with the legislation through education and enforcement mechanisims |
The Ministry of Consumer Affairs The Ministry of Consumer Affairs is an operating division of the Ministry of Commerce. On administrative, personnel and financial matters the Head of the Ministry reports to the Chief Executive of the Ministry of Commerce, who is responsible for resourcing the Ministry of Consumer Affairs (see Annex 1). On matters relating to consumer policy, operations and trade measurement, however, the Head of the Ministry reports directly to the Minister of Consumer Affairs. The Ministry's purpose is to work with consumers and business to promote a fair and informed market place for consumers. We do this in the context of contributing to the Government's strategic result area of "enterprise and innovation". Our mission is...
... and we do this in the interests of both consumers and business. The Ministry is not responsible to consumers or consumer groups. Nor is it an advocate for consumers - although it does provide a channel through which their concerns can be communicated to government. The Ministry's Definition of A ConsumerThe extent of the Ministry's work is constrained by its definition of "consumers". We define consumers as:
This definition clearly separates the consumer who pays directly for private products or services that they use and the citizen who pays indirectly (through taxation) for public services that they may or may not use. This means we exclude most public-sector services from the scope of our activities. The exception occurs when a consumer directly buys a product or service from a public-sector organisation.
The Ministry's Activity Areas
We take an integrated approach to our activities: the work of each area underpins that of the others. This "integration" is an essential element in the Ministry's ability to achieve its purpose.
The emphasis is on balanced advice. This means taking into account the interests,
concerns and needs of both business and consumer communities - which we regularly do as part of assessing the likely costs and benefits of any proposed policy.
Our responsibilities for product safety are also carried out within the policy area.
The responsibilities include administering the mandatory product safety
standards for toys, bicycles and nightclothes and we investigate product-safety
incidents in areas not covered by other specific regulation in order to advise the
Minister on appropriate action under the Fair Trading Act 1986. Again, the
emphasis is on balanced advice - and risk assessment and consultation are
amongst the key mechanisms for achieving this.
The quality of our policy advice draws considerable strength from the input of our operations area - in particular, from the Consumer Advice Service. Through the calls that the Advice Service receives, we gain in-depth knowledge about the issues being faced in the market, the weaknesses that are emerging in law and
practice, and the economic costs that consumers are incurring because of these weaknesses.
In summary, the Ministry's main policy-advice activities are:
The Ministry's Legislative Responsibilities
The Commerce Commission enforces the first of these (the Fair Traduing Actt). The remaining Acts are self-enforcing.
The Ministry, through its Trade Measurement Unit, administers and enforces the Weights and Measures Act 1987 and its amendments, as well as regulatiuons made undert hat legislation.
It should be noted that the ministry of Consumer Affairs does not administer or enforce all consumer sales and credit legislation. Two important pieces of legislation, the Motor Vehicle Dealers Act 1975 and Credit Cxontracts Act 1981, are administered by the Ministry of Justice. Another two, the Chattels Transfer Act 1924 and the Door to Door Sales Act 1967, are administered by the Ministry of Commerce.
More details on the Acts administered by this Ministry can be found in Annex 2.
'The Minister appoints two consumer representatives to the Insurance Savings Ombudsman Commission and one to the Banking Ombudsman Commission. The commissions are responsible for running the respective schemes.
Our aim in this area is to "inform" consumers so that they can exercise choice and be effective in asserting their rights and responsibilities in the marketplace. Consumers who exercise choice effectively can have a substantial influence on service standards and on the quality of goods - and businesses which respond to consumers' demands are better placed to thrive in a competitive environment.
All consumer information, education and advice programmes are targeted at those who are less educated, less informed, or less articulate. Specifically, we see
our target groups being low-income, Maori, and Pacific Island consumers.
We place emphasis on providing relevant information that enables consumers to resolve their own problems - a "self-help" approach with a minimum of third party assistance.
Close links established over a number of years with the New Zealand Association of Citizens Advice Bureaux, Budget Advisory Services and Community Law Centres have allowed us to maximise the availability of our information and advice. It has also meant that we do not waste resources by duplicating the activities of those organisations.
In summary, the Ministry's main operational activities are:
Where appropriate, the Service channels complaints and enquiries to other organisations which have specific statutory or regulatory roles in investigation and enforcement such as the Commerce Commission, the Disputes tribunal, the Privacy Commissioner, the banking Ombudsman, and the Insurance & Savings Ombudsman.
Accurate measurement and weighing of goods is essential if an economy is to have true competition between the suppliers of those goods. Buyers - whether domestic or commercial - need to know that a kilogram, a cubic metre and a tonne are exactly the same from both supplier X and supplier Y. The Weights and Measures legislation is intended to ensure that all goods are sold for trade on the basis of fair and accurate measurement.
In summary, the main activities of the Ministry's Trade Measurement Unit are:
The Ministry's Staff
The Consumer Advice Service has regional offices in Otahuhu, Wellington and Christchurch.
The Trade Measurement Unit has regional offices in Auckland, Feilding. Wellington, and Christchurch.
A chart showing the Ministry's structure is set out below.
The Ministry's Funding
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