01.04.2025 | New Zealand competition authority
The New Zealand Commerce Commission (ComCom) has successfully reached a settlement agreement with Bachcare regarding certain cancellation terms that were deemed unfair. These terms had been in use since October 2019 and were found to create a significant imbalance in the contractual relationship between Bachcare and its customers.
Commission Deputy Chair Anne Callinan emphasized that this outcome is a victory for consumers, as it ensures that future guests will benefit from fairer terms when booking with Bachcare. She stated, 'Businesses can’t have contract terms that are unfair and create a significant imbalance.' If a term is declared unfair, its continued use could violate the Fair Trading Act.
The settlement was initiated following legal proceedings filed by the Commission in the High Court against Bachcare in April 2023. As part of the agreement, Bachcare has acknowledged that the cancellation terms were unfair and has committed to revising its Terms & Conditions. Both parties have requested the High Court to schedule a hearing to formally declare the cancellation terms as unfair.
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