NZ Government Launches Major Review to Cut Product Labelling Red Tape

According to Minister Seymour, New Zealand’s product labelling requirements are currently spread across more than 30 separate codes, standards, and regulations—many of which overlap or conflict.

The New Zealand Government has initiated a wide-ranging review of the country’s outdated and fragmented product labelling regulations, aiming to cut compliance costs for businesses and lower prices for consumers. This move was announced by Minister for Regulation David Seymour and Commerce and Consumer Affairs Minister Scott Simpson, as part of a broader push to reduce bureaucratic burdens and improve New Zealand’s global trade competitiveness.

The Ministry for Regulation will lead the review, which is expected to be completed by December 2025.

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Why a Labelling Review Now?

According to Minister Seymour, New Zealand’s product labelling requirements are currently spread across more than 30 separate codes, standards, and regulations—many of which overlap or conflict. This complexity imposes significant costs on businesses that are forced to print and manage multiple versions of essentially identical labels to comply with different standards.

“From medicines and agricultural sprays to building products and groceries, complex labelling rules hit businesses across the board. Those costs don’t vanish—they’re passed on to consumers at the checkout,” Seymour said.

He added that the patchwork of labelling regulations is a hidden driver of high consumer prices, particularly in the grocery sector, where products compliant with Australian standards often have to be repackaged to meet New Zealand’s specific requirements.

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Barriers to Business and Trade

The fragmented regulatory landscape has also made it difficult for international retailers and exporters to operate efficiently in New Zealand. Exporters face dual burdens: not only must they comply with overseas markets, but they must also navigate local rules that often don’t align.

“This disjointed labelling regime drives up prices and stifles wage growth. It also prevents Kiwis from accessing a wider range of global products, as importers avoid markets with excessive or unclear requirements,” Seymour explained.

Scott Simpson emphasized that these outdated rules are a drag on both productivity and consumer choice. “If we want new international retailers to come here, we need to show them that New Zealand is open for business. And that starts with reducing annoying compliance that isn’t benefiting anyone,” he said.

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Chemist Warehouse and Other Retailers Affected

One high-profile example is Chemist Warehouse, a company that has revolutionized access to cheaper pharmaceutical products for New Zealanders. However, according to Seymour, even companies like these are burdened by excessive compliance rules that inflate operational costs.

“The presence of Chemist Warehouse has been a game-changer—but they’re also tangled in the same labelling red tape as everyone else. We need to fix that,” he noted.

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Towards Smarter Labelling Solutions

Globally, countries are moving towards smarter labelling technologies such as QR codes that can link consumers to digital product information—allowing for easier updates and market-specific tailoring. New Zealand risks being left behind if it doesn’t modernize its systems.

The Ministry for Regulation is uniquely placed to lead this effort, Seymour added, since the tangle of labelling requirements spans multiple government departments. “It takes one ministry with a mandate to cut red tape to get the job done,” he said.

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Consultation and Next Steps

The Government plans to consult with a wide range of stakeholders—including businesses, industry groups, and consumer advocates—to identify key pain points and gather insights for shaping the review’s terms of reference.

“This is not just about lowering costs for business. Every unnecessary cost we remove is a win for Kiwi families who are struggling with the cost of living,” said Simpson.

The review will take place over the next several months, with the final report expected by the end of 2025. The findings could pave the way for harmonized labelling requirements across trans-Tasman markets and a more business-friendly compliance environment.