13 November 2025 – The Reserve Bank of New Zealand (RBNZ) welcomes the Government's formal response to the recent Finance and Expenditure Committee (FEC) inquiry into banking competition.

“As the Government response notes, some of the FEC recommendations are directed to areas where The Reserve Bank of New Zealand – Te Pūtea Matua is the decision maker,” said Angus McGregor, Acting Assistant Governor of Financial Stability.

“We see a stable, competitive and efficient banking system as a vital part of a healthy economy and we are pleased that we have already made progress on many of the FEC's recommendations.”

Key parts of the RBNZ's ongoing work programme highlighted in the Government's response include the in-progress review of capital settings; consultation on the use of the term 'bank'; and leading the development of a payments modernisation strategy as a part of our Future of Money and Payments work.

Recently completed work includes establishing a Financial Policy Committee to make key financial stability decisions; reducing the minimum capital requirement for deposit takers from the current $30m to $5m when the Deposit Takers Act comes into force; expanding access to our settlement systems; and published guidelines for managing climate related risks.

“We have noted the request from FEC for regular progress updates and look forward to contributing to that process. We are also looking forward to working with our fellow regulators and Treasury to continue to promote a financial system that supports a productive economy and the wellbeing of all New Zealanders,” said Mr McGregor.

A return trip to Fiji for maritime patrols by the Royal New Zealand Air Force’s (RNZAF) MC-12K King Air has provided a further opportunity to demonstrate the aircraft’s ability to operate in the South West Pacific region.

Aircrews on the MC-12K King Air regularly provide maritime patrols to detect and deter illegal, unreported and unregulated (IUU) fishing in New Zealand’s exclusive economic zone.

Earlier this year, an MC-12K King Air flew to Fiji in what was a first for RNZAF’s No 42 Squadron deploying the aircraft to the South West Pacific region.

The aircrew worked in support of the Fijian Maritime Essential Services Centre, conducting patrols searching for IUU fishing and also pleasure craft activity in Fijian waters as Fijian authorities strive to combat transnational organised crime in their region.

On the aircraft’s second deployment to Fiji, patrols were carried out in various locations including a small island chain approximately 150 nautical miles south of Nausori, and also over an area of approximately 9500 square kilometres spanning Yasawa to Kia Island.

The recent return to Fiji enabled the aircrew to also demonstrate the aircraft’s capabilities to neighbouring Tonga. At the end of the Fijian operation, the crew and aircraft departed for its first visit to Tonga, and took two members of His Majesty’s Armed Forces, with experience in maritime surveillance operations, on board as the aircraft patrolled in the vicinity of Pangai Island in the Ha’apai group.

Air Component Commander, Air Commodore Andy Scott, said it was great to build on the success of the first deployment with another into the region.

“The South West Pacific provides an excellent operating environment for our crews and enhances the strong partnerships between New Zealand and our friends in the region.”

Squadron Leader Craig Graham, who was the detachment commander for the deployment, said the return visit to Fiji was also important for the crew as it provided an opportunity for more junior pilots to step up. Flight Lieutenant Jamie Hull deployed on both operations captaining patrols in Fiji and the international transit flights back to New Zealand.

Squadron Leader Graham said Flight Lieutenant Hull had only been flying in the MC-12K King Air for two years and this deployment provided an opportunity for him to gain valuable experience by leading his crew on a complex operation.

Consumer NZ research reveals one in three shoppers spend more than intended due to manipulative online design tactics.  

New Zealanders are being tricked into spending more and cancelling less, according to new research from Consumer NZ, exposing the invisible influence of ‘dark patterns’- deceptive digital design tactics used to manipulate consumer behaviour. 

From hidden fees and “only one left!” scarcity cues to countdown timers and endless subscription traps, dark patterns are manipulating the choices of online shoppers, costing them time and hitting their back pockets. 

The nationally representative research found that one in three New Zealanders spend more than they intended to online because of dark patterns, while nearly one-quarter say they’ve kept a subscription longer than they wanted to due to confusing or obstructive cancellation processes. 

“The implications are huge. It would be conservative to say that dark patterns cost New Zealanders millions. Unfortunately, these tactics often fall into a legal grey area – exposing a major regulatory gap,” says Chris Schulz, Consumer’s senior investigative journalist. 

Dark patterns include design tricks such as: 

pre-ticked boxes that automatically add extras to your cart 

scarcity warnings like “only one left at this price” 

hidden fees that appear only at checkout, hiking the advertised price 

hard-to-find cancellation buttons or multi-step unsubscribe processes 

confirmshaming messages that guilt consumers into staying subscribed (with wording like: “No thanks, I’d love to stay penniless” or “Do you like wasting money?”). 

The impact of these patterns is widely felt, with 93% of New Zealanders saying they had encountered scarcity cues like “only three tickets left at this price”, while three out of four people had discovered hidden fees at the checkout.  

HelloFresh – a case study in confusion 

Consumer asked research participants to cancel a HelloFresh subscription. The five-step process took several minutes to complete, and participants encountered a variety of dark patterns along the way. One person told Consumer that trying to unsubscribe was such a woeful experience, she wouldn’t touch the business again with a barge pole.

“Given how frustrating it can be to cancel a subscription like HelloFresh, we weren't surprised to find that one-quarter of New Zealanders kept a subscription longer than they intended to because of a dark pattern,” says Schulz.

Need for regulatory change 

“Dark patterns are omnipresent with the online shopping experience. In 2024 alone, New Zealanders spent $6 billion online. To mitigate the threats posed by dark patterns, we’d like to see prioritisation of a general ban on unfair trading and strengthening of our privacy laws. Aotearoa is currently unchecked and unregulated, and it’s New Zealanders who are paying the price,” says Schulz.

“We’re already behind the eight ball compared with other countries. The European Union, United Kingdom, United States and Australia have introduced or are developing frameworks to address unfair online trading practices. Our research has revealed the majority of New Zealanders want better rules or enforcement around appropriate use of dark patterns (53%), with nearly half wanting industry standards (49%).

“We wouldn’t tolerate a physical store blocking the exit until you bought something. We shouldn’t accept the digital equivalent either.”  

Dark patterns are bad for shoppers and businesses 

While dark patterns may drive a business' short-term profits or boost data collection, Consumer warns they erode long-term trust. 

Eight in ten New Zealanders believe companies using dark designs are putting profits before people, with many saying they now avoid brands that manipulate them online. 

“If your product’s good, you don’t need sneaky tactics,” one research participant told Consumer. “I’d rather walk away than feel tricked.” 

Notes

Read the full report on Consumers website: https://consumernz.cmail20.com/t/i-l-znyhkt-ijjdkdttjk-y/