No hidden fees. No traps. No rip-offs. A Labour Government will ban hidden fees, so the price you see is the price you pay.
- Cars - junk insurance banned, secret commissions banned, 14 days to cancel car-yard insurance
- Whiteware and electronics - no checkout pressure-selling of warranties, prices shown upfront
- Phones and internet - full price shown upfront, easy online cancellation, no unfair exit fees
- Subscriptions - cancelling as easy as signing up, clear pricing on introductory offers
- Tickets - advertised price must include all mandatory fees, no surprise checkout charges
- Gyms - cancelling as easy as joining, no excessive notice periods or inflated penalty fees
This election is about the cost of living. New Zealanders are working hard and every dollar counts. A Labour Government will ban hidden fees, so the price you see is the price you pay.
Most New Zealanders will know what it's like to get to the checkout and find the price has gone up because of extra fees. Or to sign up for a subscription in a few clicks, then spend ages trying to cancel it.
You might have been pressured to buy an extended warranty, or paid for insurance only to find it doesn't cover you when something goes wrong. An introductory deal that might have turned into a much bigger price before you realised.
These tricks cost people money they can't afford to waste. You deserve to know the real price, get what you paid for, and be able to leave when a deal no longer works for you.
As part of Labour's Action on Bills, we'll introduce a Fair Go Law to stop businesses making money by tricking their customers.
What Labour will do
The Fair Go Law will tackle hidden charges, insurance that provides little protection, and contracts that keep people paying after they want to leave.
Cars
- Ban junk insurance, including paint insurance and mechanical breakdown cover that excludes almost everything that could break down
- Require car sellers to show the total cost over the life of the agreement before customers sign up for a car sold with credit or insurance
- Ban secret commissions on insurance, including flex commissions that allow car dealers to increase a customer's loan interest rate in exchange for a bigger commission
- Give customers 14 days to cancel insurance bought at the car yard without any penalty
Whiteware and electronics
- Stop retailers putting pressure on customers to buy insurance and extended warranties at the checkout - these products will have to be sold the following day or over the phone
- Require prices upfront - for purchases on credit, show the total cost over the life of the agreement before customers sign up
- Strengthen warranty rules so the cover provides real value and the terms are clear
Phones and internet
- Show the full price upfront and make it easy to cancel or switch providers online
- Ban unfair exit fees, excessive notice periods and unclear automatic renewals that lock customers in and make switching hard
Subscriptions
- Make cancelling as easy as signing up, including online cancellation for services such as food boxes and streaming TV
- Crack down on unclear automatic renewals, unfair exit fees and excessive notice periods
- Clearly state when an introductory offer ends, what the ongoing price will be, and when customers will be charged
Tickets
- Require the advertised ticket price to include all unavoidable booking, processing and other charges - no more extra mandatory fees added as you go through the checkout
- Ban misleading discounts that leave out mandatory fees
Gyms
- Make cancelling as easy as joining, including the ability to cancel online
- Ban excessive notice periods, inflated penalty charges such as lost key tag fees, and unfair contract terms that keep people paying after they want to leave
Why it matters
When you're trying to manage household bills, every unexpected fee makes it harder. A subscription you can't cancel means less money for groceries. Insurance that doesn't cover a necessary repair can leave you with a bill you thought you had covered.
Getting a fair deal shouldn't depend on spotting every extra cost in the fine print or having the time to chase a company until it lets you leave.
Labour's Fair Go Law will help people keep more of their money and make it easier to choose a better deal.
Labour's plan to lower bills
Labour’s Fair Go Law is part of our plan to lower costs. A Labour Government will also:
- Make price gouging illegal, take on the supermarket giants so smaller stores have guaranteed access to wholesale and can offer fairer prices.
- Provide three free GP visits a year and make prescriptions free.
- Freeze fuel tax for three years and cap public transport fares at $20 a week in our main cities and $10 elsewhere, saving the average commuter $25 a week.
- Help families install solar with no upfront cost, saving around $1,000 a year.
What is Labour's Fair Go Law?
The Fair Go Law is Labour's plan to stop businesses making money by tricking their customers, tackling hidden charges, insurance that provides little protection, and contracts that keep people paying after they want to leave. It covers cars, whiteware and electronics, phones and internet, subscriptions, tickets, and gyms.
What changes for buying a car?
Labour will ban junk insurance such as paint insurance and mechanical breakdown cover that excludes almost everything that could break down, require car sellers to show the total cost over the life of any credit or insurance agreement before customers sign up, ban secret commissions on insurance including flex commissions, and give customers 14 days to cancel insurance bought at the car yard without penalty.
What changes for subscriptions like streaming and food boxes?
Cancelling will have to be as easy as signing up, including online cancellation for services such as food boxes and streaming TV. Labour will crack down on unclear automatic renewals, unfair exit fees and excessive notice periods, and require companies to clearly state when an introductory offer ends, what the ongoing price will be, and when customers will be charged.
What changes for gym memberships?
Cancelling a gym membership will have to be as easy as joining, including the ability to cancel online. Labour will ban excessive notice periods, inflated penalty charges such as lost key tag fees, and unfair contract terms that keep people paying after they want to leave.
What changes for buying event tickets?
The advertised ticket price will have to include all unavoidable booking, processing and other charges, so no extra mandatory fees are added at checkout. Labour will also ban misleading discounts that leave out mandatory fees.
What changes for phone and internet contracts?
Providers will have to show the full price upfront and make it easy to cancel or switch providers online. Labour will ban unfair exit fees, excessive notice periods and unclear automatic renewals that lock customers in and make switching hard.
What changes for buying whiteware and electronics?
Retailers will no longer be able to pressure customers into buying insurance and extended warranties at the checkout - these will have to be sold the following day or over the phone instead. For purchases on credit, the total cost over the life of the agreement must be shown upfront, and warranty rules will be strengthened so cover provides real value with clear terms.
How does this relate to Labour's other cost of living policies?
The Fair Go Law is part of Labour's wider Action on Bills plan, alongside making price gouging illegal, fairer grocery prices, three free GP visits a year, free prescriptions, a fuel tax freeze, the $20 public transport fare cap, and SolarSaver.
Kiwis deserve a fair go.
Better starts now.
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