Labour will make price gouging illegal, so big companies can't use their market power to overcharge you for the essentials.
- Price gouging becomes illegal. There is currently no law against excessive price gouging in New Zealand
- Clear legal tests. For the first time, the law will define when high prices become unfair and excessive
- Covers the essentials: food and groceries, energy, fuel, telecommunications, banking, and insurance
- Only applies to big companies with significant market power, not your local dairy, cafe or tradie
- The Commerce Commission gets new powers to investigate dominant companies and take them to court
- Money paid back. Companies that overcharge will face penalties and be ordered to repay what they took
- Suppliers protected too. Labour will act when powerful companies unfairly squeeze growers, producers and suppliers
New Zealanders are working hard. They deserve a fair price for the essentials.
But when only a handful of big companies control the things people need, like groceries, power and fuel, they have the power to charge unfair prices, simply because customers have nowhere else to go.
Right now, there's no law against excessive price gouging. Labour will change that, so that the big companies can't rip you off, and you and your family can save more money.
What we'll do
Labour will crack down on big companies who charge excessive prices for essential goods and services.
We'll also act when powerful companies unfairly squeeze the growers, producers, and other suppliers people rely on.
Why it matters
Christopher Luxon promised to fix the cost of living, but he has made it worse. One in three New Zealand households couldn't afford enough food last year.
People are working harder but still going backwards. When companies have too much power, the government should stop them using it to rip people off.
Only Labour will act.
How it works
Make price gouging illegal
Labour will change the law so companies can't exploit their market power to overcharge people for the essentials.
Set clear legal tests
For the first time, the law will define when high prices become unfair and excessive. When prices are well above what it costs a company to supply, or well above what the same goods cost in a competitive market, large companies could face penalties and repay the consumers they have overcharged.
Give the Commerce Commission the power to act
The Commerce Commission will have the power to investigate what dominant companies are charging and take them to court.
Let consumer and supplier groups bring forward cases
Groups acting for consumers, growers, or suppliers will be able to take complaints to the Commerce Commission.
Take the profit out of price gouging
Big companies that use their market power to charge unfair and excessive prices will face penalties and be ordered to give what they overcharged back to people. A company thinking about ripping New Zealanders off will know that if they're caught, they'll have to pay back every dollar.
Who will it cover?
Only the big players
The law will apply where a company has enough market power that customers can't realistically switch, suppliers have nowhere else to go, or new competitors struggle to enter the market. The policy doesn't touch your local dairy, cafe or tradie. Investment, innovation, and improvements that help with supply will also be protected.
Only essential goods and services
The law will stop New Zealanders being ripped off paying for:
- Food and groceries
- Energy
- Fuel
- Telecommunications
- Banking
- Insurance
What is price gouging and is it currently illegal in New Zealand?
Price gouging is when a company uses its market power to charge excessive prices for goods or services that customers cannot do without. Right now there is no law against excessive price gouging in New Zealand. Labour will change that.
How will the law define an unfair or excessive price?
For the first time, the law will define when high prices become unfair and excessive. Where prices are well above what it costs a company to supply, or well above what the same goods cost in a competitive market, large companies could face penalties and be required to repay the consumers they have overcharged.
Which goods and services will be covered?
The law will cover essential goods and services: food and groceries, energy, fuel, telecommunications, banking, and insurance.
Which companies will the law apply to?
Only the big players. The law will apply where a company has enough market power that customers cannot realistically switch, suppliers have nowhere else to go, or new competitors struggle to enter the market.
Will this affect small businesses?
No. The policy does not touch your local dairy, cafe or tradie. It only applies to companies with significant market power in essential goods and services.
What powers will the Commerce Commission have?
The Commerce Commission will have the power to investigate what dominant companies are charging and take them to court. Groups acting for consumers, growers or suppliers will also be able to take complaints to the Commerce Commission.
What happens to companies that break the law?
Big companies that use their market power to charge unfair and excessive prices will face penalties and be ordered to give back what they overcharged. A company considering overcharging New Zealanders will know that if it is caught, it will have to pay back every dollar.
Does this protect suppliers and growers as well as consumers?
Yes. Labour will also act when powerful companies unfairly squeeze the growers, producers and other suppliers people rely on, and supplier groups will be able to bring complaints to the Commerce Commission.
Will this discourage investment or innovation?
No. Investment, innovation, and improvements that help with supply will be protected under the law.
A fair price for the things you can't do without - and just the start of how life will get better with Labour.
Better starts now.
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