12 New Zealand retirement villages on notice for risking breach of Fair Trading Act

After complaints from Consumer NZ and the Retirement Village Residents Association of New Zealand, retirement village operators have come under fire from the Commerce Commission for their care claims and contract terms. 

“Many New Zealanders who should be enjoying their golden years find themselves at the mercy of village operators wielding unfair contract terms and making promises about providing higher levels of care in their advertising, which is at odds with the small print in their terms and conditions." Consumer NZ Chief Executive Jon Duffy said. 

Some villages were said to be misleading people with "continuum of care" claims.  

“We are concerned the advertising used to promote many retirement villages has led people to believe they are assured of additional or hospital level care at their facility, when in reality, that care is not guaranteed," Jon said. 

“We have heard of people having to find somewhere else to live because the care promised in advertising was not available to them when they needed it.” 

The Commission has now written to the 12 village operators to explain their obligations under the FTA and to help them to comply with those obligations. 

The Retirement Villages Association (RVA) of New Zealand said it is "pleased" the Commerce Commission won't be taking further action against any of the named operators.  

"Every resident is required to obtain legal advice before they can sign any agreement, and the solicitor must certify they have explained the terms and the resident understands them. Monitoring by the Retirement Commission has found that the legal advice is generally good," Executive Director John Collyns (pictured) said.  

"No operator can ever give a guarantee of a bed, but in practical terms there is very rarely an issue, which is typically addressed promptly. The move to care obviously depends on a bed being available when required," he said.  

"Residents almost always get priority for beds in their own village, and of course in most instances the need for a care bed is something that becomes obvious over time. For most residents, the transition to care is straightforward and planned." 

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