Labour to cap bills at 30-day low for discounts

Labour will prevent phone, internet, and insurance providers from charging long-term customers more than new clients.

The party released this policy on Monday, ahead of the general election scheduled for November 7. The measure targets specific billing practices that the party describes as unfair to households that remain with a single provider for years. Under the new rules, companies could not charge established customers higher rates than those available to recent sign-ups. The policy also addresses the end of introductory offers. Providers would be barred from moving customers onto plans that are unjustifiably expensive once a promotional period concludes. This change aims to stop sudden price jumps that occur when a deal expires.

The Labour plan includes a strict definition for advertised discounts. Companies would only be allowed to label a price as a discount if it is lower than the lowest price charged for that specific product in the previous 30 days. This requirement is designed to eliminate what the party calls fake discounts. Arena Williams, the party spokesperson for commerce and consumer affairs, stated that New Zealanders deserve honest deals and more disposable income at the end of the week. She noted that the policy is part of a wider strategy to reduce the cost of living. Williams added that Kiwis should receive a fair go on their household bills without needing to compare prices for hours.

Leader Chris Hipkins argued that consumers should not have to read fine print or switch companies to find a fair price. He observed that many people end up paying more simply because they stay with their current provider. The party noted that power companies are already required to check if their customers are on the best available plan. Labour intends to extend similar protections to the telecommunications and insurance sectors. The policy document outlines these requirements as mandatory obligations for firms in these industries.

The party will table these proposals in parliament if it wins the election on November 7. The legislation would apply to all major phone, internet, and insurance providers. No further dates have been set for the implementation of these rules beyond the election date.