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flag New Zealand is boosting penalties for deceptive advertising to up to $5 million to combat rising consumer complaints.

flag New Zealand is overhauling its Fair Trading Act with significantly higher penalties for misleading advertising and deceptive practices, raising maximum fines to the greater of three times a company’s gain, the transaction value, or $5 million—up from $600,000. flag The changes, aimed at deterring unethical business behavior after a 23% rise in complaints and high-profile cases involving retailers like Pak’nSave and Woolworths, will allow the Commerce Commission to act based on the balance of probabilities. flag Serious offenses remain criminal, and reforms are expected to take effect in 2026 after public consultation. flag The government has deferred decisions on expanding infringement fees or banning director indemnification.

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