The Ministry for Regulation is conducting a review into consumer product labelling regulations in an effort to lower prices for New Zealand manufacturers, retailers, and consumers.
Here is how the proposed changes may affect your business.
New Zealand’s current regulatory framework imposes different requirements on how information must be reported and displayed depending on product classification. Some are more stringent than others, such as children’s nightwear and toys, and personal use products.
For products like packaged food, New Zealand aims for consistency between itself and Australia. Food Standards Australia and New Zealand (FSANCZ) impose strict labelling requirements for packaged food, including that labels must be attached or part of the food, easy to read, and written in English. The labels must also contain lot and batch identification numbers, an accurate name or description of the food, and the name and physical address of the New Zealand or Australian supplier.
The Ministry’s Engagement Report suggests that current labelling regulations make compliance for New Zealand businesses too complicated and costly, driving up prices for consumers and making New Zealand products less competitive internationally.
New Zealand’s labelling regulations for dietary supplements, for example, are trickier to navigate than those of trading partners such as the United States or Australia. Supplements produced in New Zealand must meet strict domestic declaration requirements as to therapeutic claims and active ingredients, whereas these countries do not.
The Ministry has proposed changes to labelling regulations for certain products to better align New Zealand with its trading partners.
These changes, it is suggested, will reduce compliance costs for New Zealand businesses and increase their competitiveness internationally, particularly benefitting smaller businesses with fewer resources to meet current compliance costs.
The Ministry has notably targeted the packaged food and supplements industries as two for reform. Proposed changes include removing the need for exporters to apply for special exemptions from domestic labelling regulations where their products meet the labelling requirements of importing countries, and the use of QR codes for certain labelling requirements.
While many organisations, such as BusinessNZ, welcome the news of regulatory reform, others warn of their potential implications.
The Ministry’s Engagement Report provides that customers want clear information about product origin, pricing, nutritional value, and allergens, which may be compromised by a more lenient labelling framework. Moreover, unlike other countries such as Australia, New Zealand does not have an enforcement authority to hold businesses accountable for non-compliance.
While the proposed changes to labelling regulations may therefore reduce compliance costs for New Zealand businesses, they will nevertheless be expected to ensure their ongoing compliance with any new regulations so that consumers can maintain confidence in New Zealand’s consumer labelling framework.
This article is for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information, readers should not rely on this article as a substitute for professional legal advice.