Consumer protection laws can get carried away

Summarised by Centrist

Operating since 2006, a group of psychics in New South Wales has reportedly swindled several individuals out of their savings. Tarot cards and a crystal ball were seized by police, and one psychic was denied bail.

“Australia is a remarkable place. Really, they’re leading the way in extending consumer protection,” quips Dr Eric Crampton, Chief Economist at the New Zealand Initiative.

Crampton points out the absurdity of cracking down on phoney psychics while violent gang members roam free, illustrating the arbitrary focus of consumer protection laws.

Meanwhile, in New Zealand, the Commerce Commission recently brought criminal charges against a telecom company for promising 100% coverage. Crampton questions whether such claims are more akin to “puffery”—exaggerated marketing that isn’t meant to be taken literally—and suggests civil proceedings would have been more appropriate. He also draws parallels to slogans like Tourism New Zealand’s “100% Pure” campaign.

Crampton’s critique cuts deeper, arguing that while Australia targets psychics and New Zealand prosecutes a telecom, politicians face no accountability for unfulfilled promises. 

“I think we should lean into this and start bringing criminal charges against government agencies and politicians who make similarly misleading claims,” he writes, referencing Labour’s failed Kiwibuild target of 100,000 homes and National’s broken fiscal promises.

Read more over at The NZ Initiative

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