Latest news with #CommerceandConsumerAffairsMinisterScottSimpson
Scoop
4 days ago
- Business
- Scoop
Regulation Ministry To Tackle 30 Different Product Labelling Regulations
Minister for Regulation Hon Scott Simpson Minister of Commerce and Consumer Affairs Unnecessary costs and frustrations throughout the economy are caused by complex and outdated labelling regulations. Minister for Regulation David Seymour and Commerce and Consumer AffairsMinisterScottSimpson have today announced the Ministry for Regulation will conduct a sector review into product labelling to address this. 'The Ministry for Regulation is in a unique position to take on regulatory costs that make it harder for Kiwis to get affordable goods. Because these regulations are imposed by so many departments, it takes one ministry with a mandate for cutting red tape,' says Mr Seymour. 'New Zealand product labelling requirements are made up of over 30 different codes, standards, and regulations. This leads to high costs for businesses to label their products to comply with New Zealand standards. 'New Zealand's labelling regime drives up prices and limits wage growth. Exporters face extra compliance costs preparing products for overseas markets, while consumers miss out on global goods because importers face differences in labelling requirements. Many countries are also shifting to QR codes that link to online labels, easily tailored for different markets and changing needs. 'Complex labelling rules hit businesses at every level. From small exporters navigating conflicting overseas standards, to pharmacies putting medicines on their shelves. Businesses are forced to print multiple versions of essentially the same label. It's also building products and agricultural sprays; the list goes on. Those costs ultimately get passed on to consumers at the checkout. 'The price of groceries is a major concern for Kiwis. Current settings mean products packaged for Australia might not be able to be sold in New Zealand. This forces businesses to waste time and money repackaging,' says Mr Seymour. 'If we want new international retailers to come here, we need to show them we welcome business investment. The best way to do that is to get out of their way when it comes to annoying compliance that isn't benefiting anyone. 'Businesses like Chemist Warehouse have been a game-changer for Kiwis purchasing cheaper pharmaceutical products. However, they're also tied up by excessive labelling requirements adding costs to their operations.' 'This is a step towards lower compliance costs for businesses and increased global competitiveness for Kiwi goods on the world stage,' says Mr Simpson. 'This Government is working with businesses, industry groups, and consumer advocates to identify pain points and gather input to shape the review's terms of reference. 'In a time when households are feeling the pinch, every unnecessary cost we can remove from the system is a win for families and businesses.' The review is expected to be complete by December 2025.
Scoop
28-07-2025
- Business
- Scoop
Scrapped Surcharges A Win For New Zealanders
Hon Scott Simpson Minister of Commerce and Consumer Affairs Surcharges will be axed to put money back in Kiwis' pockets, says Commerce and Consumer AffairsMinisterScottSimpson. 'Surcharges are a hassle and an unwelcome surprise when shoppers get to the till. That pesky note or sticker on the payment machine will become a thing of the past. 'We're banning surcharges so consumers can shop with confidence knowing how much they will pay for their purchases. 'New Zealanders are paying up to $150 million in surcharges every year, including excessive surcharges of up to $65 million. That's money that could be saved or spent elsewhere. 'By May 2026 at the latest, we will ban surcharges for in-store payments. Shoppers will no longer be penalised for their choice of payment method, whether that's tapping, swiping or using their phone's digital wallet.' The ban follows the Commerce Commission decision to reduce interchange fees paid by businesses to accept Visa and Mastercard payments, a move to save businesses around $90 million a year. 'Surcharges cover the fees businesses pay for accepting contactless payments and credit cards, but we know these are often excessive. 'In some cases, the retailer doesn't even make it clear what the percentage is. 'A ban on surcharges means no more surprises for people who currently feel like they're being charged to use their own hard-earned money. It means they can make a purchase knowing exactly what they'll pay, and how they'll pay it.' Notes: The Retail Payment System (Ban on Surcharges) Amendment Bill is expected to be introduced by the end of this year. The ban will apply to most in-store payments made using domestic Mastercard, Visa debit, credit cards and EFTPOS. Transactions through the Visa and Mastercard networks and by EFTPOS are the main method of card payment in New Zealand. The Commerce Commission estimates New Zealanders pay about $150 million in surcharges annually including $45-$65 million in excessive surcharges. The Commerce Commission has already announced lower interchange fees paid by businesses to accept Visa and Mastercard payments. Interchange fees make up approximately 60% of merchant service fees. In the United Kingdom and across the European Union, surcharges for debit and credit cards for designated schemes are banned. Australia currently has surcharging on debit and credit cards, but this must be no more than the cost to retailers of accepting these cards. The Reserve Bank of Australia has recently proposed banning surcharges altogether for EFTPOS and Visa and Mastercard debit and credit cards.
