Labour proposes crackdown on hidden fees and consumer protections
Thursday 1 October 2026 · 4 outlets · 6 reports · updated In this story Labour Party, Chris Hipkins, Arena Williams
The Labour Party has unveiled a policy to ban various unfair consumer fees if elected. Proposed measures include prohibiting PayWave surcharges and banning certain types of car insurance. Party leader Chris Hipkins announced the plan in Auckland to ensure customers pay the advertised price.
Key facts
4 facts
- Labour's policy aims to ensure the price seen is the price paid
- Proposed ban on 'junk' car insurance including paint and navigation cover
- Requirement for online cancellation for subscription services
- Announcement made at Māngere Budgeting Services Trust in Auckland
The full story
1 min read · 3 outlets
Labour has unveiled a consumer protection policy aimed at eliminating hidden fees and ensuring the advertised price is the actual price paid. The party leader, Chris Hipkins, announced the plan at Māngere Budgeting Services Trust in Auckland.
Under the proposed rules, certain types of car insurance, such as paint and navigation cover or mechanical breakdown insurance that excludes most repairs, would be banned as 'junk insurance'. Car dealers would also be prohibited from taking secret commissions on insurance or using 'flex commissions' to increase loan rates.
The policy includes a 14-day cooling-off period for other insurance sold during a car purchase. For electronics and whiteware, retailers would be barred from selling extended warranties on the day of purchase, requiring them to be sold the following day or over the phone.
Subscription services, including gyms, streaming TV, and food boxes, would be required to offer online cancellation and provide clear upfront pricing. Labour also intends to ban unfair exit fees, unclear automatic renewals, and inflated penalty charges like those for lost key tags.
Event ticket sellers would be required to include all unavoidable booking and processing fees in the initial advertised price. National campaign chairman Simeon Brown responded by alleging that Labour's plan would be funded by an $18.8 billion hole, which would result in an extra $2,263 in tax per household.
How it developed
- Thu 1 Oct, 10:57amLabour spokesperson Arena Williams stated the party intends to ban PayWave surcharges.
Where reports differ
- One report mentions a specific ban on PayWave surcharges, while others focus on broader consumer fee regulations
Compiled from reports by 1News, NZ Herald and Stuff.
