Commerce Commission launches an investigation into NZ’s retirement villages

The investigation into potential breaches of the Fair Trading Act has been described as puzzling by John Collyns (pictured), Executive Director of the NZ Retirement Villages Association (RVA). He said he had been in discussions with the complainants – consumer protection peak body Consumer New Zealand and the Retirement Village Residents Association of NZ.

“We have been discussing their concerns with them and taking steps to advise members where any change may be appropriate, so we’re surprised an investigation is warranted,” John said. “Our members are fully committed to meeting the requirements of the Fair Trading Act and we will fully co-operate with the Commerce Commission.”

A NZ Retirement Villages Association survey in 2021 had found that out of over 1,000 residents who wanted to move to care at their village, only 13 had to move to another facility due to a lack of vacancies, and only eight had needed to be temporarily relocated until a vacancy occurred, John said.

“No member can ever give a guarantee of a bed, but in practical terms there is very rarely an issue, which is typically addressed promptly.”

The investigation by the Commerce Commission follows a series of complaints, including from Consumer NZ and the NZ Retirement Village Residents Association, about what they claim are unfair contract clauses which can leave retirees significantly out of pocket.