Who Is a Consumer?

Abstract

The paper examines the justifications for consumer laws and focuses on what constitutes a consumer. Several approaches to defining consumers are considered and it appears that each of them contains weaknesses. From this analysis it is suggested that New Zealand courts and tribunals should apply a multi-factor approach with additional guidelines to correct unjustified outcomes of the test in s 2 Consumer Guarantees Act 1993. Then, the consumer definition in s 2 is further examined and criticised. The current scope of protection under the Act is not broad enough and it should be reformed. Also, it is advocated that the consumer definition in s 2 should be harmonised with other consumer laws. It is further concluded that small businesses should not be protected by consumer laws. However, founders of new businesses who enter into a loan contract still appear to be worthy of consumer protection and should thus be protected.