'Fair Go Law' welcomed, 'but does need to be well-funded'

By the Editorial Team · Monday, October 5, 2026

Labour has proposed a “Fair Go Law” to eliminate hidden fees, subscription traps, and junk insurance, targeting issues like drip-pricing and deceptive used car dealership practices. Experts warn that without stronger enforcement and increased resources for regulators, the law may have limited impact despite its potential to better protect vulnerable consumers.

Labour’s proposal to introduce a “Fair Go Law” aimed at curbing hidden fees, subscription traps, and junk insurance has been welcomed by consumer law experts, who caution that effective enforcement will be essential for the legislation to succeed.

The Labour Party announced the measure as part of its campaign to address concerns over the rising cost of living. The proposed law seeks to tackle practices such as drip-pricing—where online businesses reveal the full cost of a product or service only late in the transaction—as well as the sale of junk insurance products like mechanical breakdown cover, frequently sold by used car dealerships. Consumer advocates have long called for action against these types of insurance, which disproportionately affect lower-income buyers.

Alex Sims, professor in the Department of Commercial Law at the University of Auckland, expressed support for the initiative but emphasized that passing new laws alone is unlikely to resolve the issues. She pointed to widespread non-compliance with existing consumer protection regulations, noting that without adequate resources devoted to enforcement, the new measures could have limited impact.

Sims echoed concerns previously voiced by former prime minister Geoffrey Palmer, who criticized the assumption that legislation alone is sufficient to solve complex consumer problems. “I urge Labour to direct and fund the Commerce Commission to conduct far more active investigations,” she said, highlighting the need for stronger regulatory oversight.

In addition to government action, Sims encouraged consumers to report questionable business practices to the Commerce Commission. She suggested that a significant volume of complaints could prompt more rigorous enforcement and greater accountability.

New Zealand already has robust consumer protection laws on the books, according to Sims, but many companies flout these rules due to lack of effective monitoring and penalties. The Fair Go Law aims to strengthen protections for consumers by addressing loopholes and deceptive practices, but its ultimate success will depend heavily on the willingness and capacity of regulators to uphold the new standards.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.