In this update, we report on progress with the Commerce (Promoting Competition and Other Matters) Amendment Bill, and also cover recent enforcement activity by the Commerce Commission in the consumer space (including the Commission’s first-ever unconscionable conduct cases under the Fair Trading Act).

Commerce (Promoting Competition and Other Matters) Amendment Bill

In late 2025 the Commerce (Promoting Competition and Other Matters) Amendment Bill (the Bill) was introduced to Parliament. The Bill proposes a number of significant changes to New Zealand’s competition law regime, as set out in our earlier article here.

The deadline for submissions to the select committee on the Bill was 4 February 2026, and Simpson Grierson provided a submission. Overall, we support several of the Bill’s reforms that will make New Zealand’s regime more workable and better aligned with international practice (for instance the ability for the Commerce Commission to accept behavioural undertakings in relation to acquisitions, and to better protect confidential information). However, we have concerns about a number of proposed changes that risk creating legal uncertainty, discouraging legitimate investment, or going further than is necessary to protect competition.

For a deeper dive on these concerns, you can read our submission in full here.

When do these changes come into force?

The Bill is currently before Parliament and has been referred to the select committee. It is expected to pass by mid‑2026, with the new provisions likely to come into force progressively by the end of 2026.

Recent enforcement activity in the consumer space

Alongside the proposed legislative reforms, recent enforcement activity by the Commerce Commission highlights:

• an increased focus on conduct that causes serious consumer harm - including the Commission’s first-ever unconscionable conduct cases under the Fair Trading Act; and
• a continued focus on the grocery sector, including supermarket product de‑listing as a key area of concern due to its potential to reinforce existing power imbalances.

We discuss these developments in further detail below.

Focus on conduct that causes serious consumer harm

Unconscionable conduct 

In September, we reported that unconscionable conduct was identified as a key enforcement priority for the Commerce Commission in 2025/2026. In January 2026, the Commerce Commission brought its first-ever unconscionable conduct cases under the Fair Trading Act against two businesses, alleging the exploitation of vulnerable consumers.

Proceedings have been filed against Brand Developers Ltd (trading as The TV Shop) for allegedly using high‑pressure sales tactics, unaffordable long‑term payment plans, and aggressive post‑sale retention and debt collection tactics when selling high‑value bed and chair products - often to customers who were vulnerable, including those experiencing cognitive decline.

The Commission has also taken another unconscionable conduct case against Tech Vault Enterprises Ltd (HouseSmile), which is already before the courts for sentencing.

Once determined, these cases should assist in providing greater guidance to businesses on what is (and is not) unconscionable conduct going forward.

The TV Shop in the spotlight again 

Following a Commerce Commission prosecution, Judge Sellars KC in the District Court has found that The TV Shop had committed 13 breaches of the Fair Trading Act. This is separate from the unconscionable conduct case referred to above.

The Court found that The TV Shop had:

1. Published fake positive customer reviews written by staff and friends and family of staff;
2. Removed low-rating reviews on its website, which artificially inflated product ratings;
3. Misrepresented consumer rights, suggesting that refunds or remedies for customers were limited to internal refund policies rather than having broader rights under the Consumer Guarantees Act; and
4. Made misleading claims about “free” or “bonus” items.

The Court described the conduct as systemic, not isolated, and the matter is proceeding to a penalty hearing.

Similar concerns about fake positive customer reviews have previously been identified in other industries such as hotels and restaurants. This remains a priority focus for the Commission.

Supermarket de-listing

Recent action by the Commerce Commission has highlighted supermarket product de‑listing as a key compliance risk under the Grocery Industry Competition Act (the Act) and Grocery Supply Code (the Code).

Product de‑listing occurs where a supermarket removes a supplier’s product from its shelves. The Commission has emphasised that the threat of de‑listing carries significant commercial weight for suppliers, particularly smaller brands, given the dominance of Woolworths and the Foodstuffs co‑operatives, which hold 82% of the New Zealand grocery market. The risk of losing access to supermarket shelves can pressure suppliers into accepting unfavourable terms or deter them from raising concerns, reinforcing the existing power imbalance in the sector.

Following a review of the major supermarkets’ range‑review processes, the Commission issued Woolworths New Zealand with a formal warning for a likely breach of the Act, based on concerns about compliance with Code requirements when de-listing products.

While only a Court can determine whether a breach has occurred, the Commission’s warning underscores that supermarkets must act in good faith, provide clear reasons for de‑listing decisions, and ensure suppliers understand their rights to transparency.

The Commission has signalled that de‑listing practices will remain an enforcement priority, with updated Code protections intended to protect suppliers and deter retaliatory conduct. The new Code will come into force on the later of 1 May 2026 or when penalties are prescribed by amendments to the Grocery Industry Competition Regulations.

This warning is part of a wider range of enforcement action that the Commission has recently taken against the major supermarkets in New Zealand. You can read about this further in our previous articles from 2025 here and here.

Get in touch

Please get in touch if you would like more information or to talk to one of our experts about what this means for your business.

Special thanks to Achi Simhony for her assistance in writing this article.