Distance Selling Methods: A Comparative Study of Germany's and New Zealand's Response to Online Auction

Abstract

New Zealand is currently reforming its Consumer Laws. The Ministry of Consumer Affairs recently introduced a new Consumer Law Reform Bill into Parliament1. Due to the outdated framework of the existing laws, the problems of consumers were not being addressed in an accurate way.2 Long ago the trade hit the hi-tech age, whereas the legal rules remained widely unchanged. The consistent progressive development in technology demands legal modifications to balance the emerged inequality of power in the relationship between the consumers on the one hand and the market on the other hand. Technology plays a crucial role in trading over distances. What was formerly unthinkable is today’s reality. The invention of the Internet enabled new marketing channels. Consumers are shopping in their homes via computer equipment, comfortably contracting per mouse click. The most critical form of online shopping in New Zealand is the Internet auction. Most of the existing laws in New Zealand are not applicable to online auctions, thus consumers are treated like outlaws in some cases. This paper analyses how the two countries, Germany and New Zealand currently deal with online auctions. The ongoing reforms in New Zealand give the occasion to assess whether the introduced changes can result in significant improvements and whether the countries can learn from each other’s experience towards a greater consumer protection.