Labour Sets 30-Day Price Floor to Stop Loyalty Penalties

New Zealand households could soon be protected from paying more for loyalty than for switching. The Labour Party has pledged to cap household service pricing at the lowest rate charged in the previous 30 days if it wins the election on November 7.

The proposal targets phone, internet, and insurance providers. Under the plan, companies would be prohibited from charging longstanding customers higher prices than new ones. The policy also aims to stop providers from moving users to expensive plans when introductory offers expire. Labour notes that power companies already must verify customers are on their best available plans.

Chris Hipkins, the party leader, outlined the plan on Monday. He stated that consumers should not need to spend hours comparing prices or reading fine print to secure fair terms. Hipkins noted that many people find their bills rise when a deal ends or discover that advertised sales were not genuine bargains.

Arena Williams, the commerce and consumer affairs spokesperson, emphasized the financial impact on families. She said New Zealanders deserve honest deals and more disposable income at the end of the week. Williams described the initiative as a direct response to cost-of-living pressures.

The policy document specifies that advertised discounts must be based on the lowest price for that product in the prior 30 days. This rule is designed to eliminate fake discounts and misleading special offers. The party argues that customers should be able to trust that a marked-down price represents a real saving.

Labour will hold the general election on November 7. The proposed rules would apply to major household services sectors, including telecommunications and insurance.