Is It Legal To Resell Products In New Zealand?

Reselling products can be a great way to build a business in New Zealand. Maybe you’re sourcing inventory from local wholesalers, importing stock, or buying goods in bulk and selling them online.

But a question we see all the time is: is it legal to resell products in New Zealand - and what do you need to do to stay compliant?

The good news is that reselling products is generally legal in New Zealand. The catch is that the “legality” isn’t just about where you got the product from. It’s also about how you describe it, what you promise customers, the way you price and label it, and whether you’re breaching someone else’s intellectual property or contract terms.

Below, we’ll break down the key legal and compliance essentials for small businesses that are reselling products in New Zealand, including the laws that commonly apply, practical steps you can take, and the common traps that can cause expensive problems later.

Is Reselling Products Legal In New Zealand?

In most cases, yes - reselling products is legal in New Zealand.

If you lawfully own a product (for example, you bought it from a supplier, wholesaler, distributor, or even a private seller), you can usually resell it. This can apply whether you’re operating online, at markets, through social media, or from a physical retail space.

However, there are a few situations where reselling can become risky or unlawful, such as:

• You’re selling counterfeit goods (even if you didn’t realise they were counterfeit).
• You’re breaching intellectual property rights, such as trade marks, copyright, or registered designs.
• You’re making misleading claims about authenticity, quality, warranty, origin, or condition.
• You’re importing goods yourself (including so-called “parallel imports”) and you’re not meeting New Zealand compliance requirements that apply to importers.
• You’re breaking a contract with a supplier (for example, a distribution deal that restricts where/how you can resell).
• The product is regulated (such as cosmetics, food, alcohol, medicines, supplements, vaping products, or children’s products) and you’re not meeting additional rules.

So while the business model is usually fine, you’ll want to get your legal foundations right from day one - especially if you’re investing real money into stock and building a brand around your store.

What Consumer Laws Apply When You’re Reselling Products?

Most small businesses get into trouble not because reselling products is “illegal”, but because of consumer law compliance.

When you sell to customers in New Zealand, you’ll typically need to comply with two core laws:

Fair Trading Act 1986 (FTA)

The FTA is all about truth in advertising and sales conduct. In simple terms, you must not mislead customers (or create a misleading impression), whether intentionally or not.

This can affect how you describe products on your website, social media, packaging, invoices, receipts, and even what your staff say in-store.

Common risk areas when reselling products include:

• Listing something as “new” when it’s actually used, refurbished, ex-demo, or damaged stock.
• Saying a product is “authentic” or “genuine” without being confident it is (and having supplier documentation helps).
• Implying you’re an “authorised distributor” or “official stockist” if you’re not.
• Inflating “usual” prices to make discounts look bigger (pricing claims can be a big compliance issue).
• Using terms like “limited offer” or “exclusive” where that isn’t accurate.

Consumer Guarantees Act 1993 (CGA)

The CGA gives customers automatic guarantees when they buy goods from a business in New Zealand (with some exceptions).

For example, the CGA generally applies to consumer sales, and it may be possible to “contract out” of the CGA for some business-to-business transactions if strict requirements are met (including that the goods are acquired for business purposes and the contracting-out is in writing). Because the rules are technical, it’s worth getting advice if you sell B2B as well as to consumers.

Even if you’re “just reselling”, customers may still have rights such as:

• Goods must be of acceptable quality.
• Goods must match their description.
• Goods must be fit for purpose (including a purpose the customer told you about).
• Goods must arrive without hidden defects (especially relevant for online sales).

A common misconception is: “If something goes wrong, the customer has to deal with the manufacturer.” In many cases, the customer can come to you first, because you’re the retailer who made the sale.

That’s why it’s important to think about your supplier terms, return processes, and quality checks upfront - not only for customer satisfaction, but to manage legal risk.

If you offer online sales, it’s also smart to set clear ordering, delivery and refund processes in your Business Terms so customers understand the process and your team has a consistent way to handle issues.

Can You Resell Branded Products Without Permission?

This is one of the biggest grey-area questions for small businesses: can you resell branded products you bought elsewhere?

Often, yes - you can sell genuine branded goods you legally purchased. But there are a few compliance essentials to get right.

1) Avoid Trade Mark Infringement And Counterfeit Risk

If you’re selling products with someone else’s branding (logos, brand names, packaging), you need to make sure the goods are genuine and not counterfeit.

Even if you bought them from a third party, you can still face major problems if the products turn out to be fake. Practically, that means you should:

• Vet suppliers carefully (and avoid “too good to be true” deals).
• Keep invoices, supplier contracts, and communications.
• Check for signs of counterfeit packaging or poor quality control.

If you’re building your own brand while reselling, it’s also worth protecting it early with Trade Mark Registration, especially if you’re investing in a store name, logo, or packaging.

2) Be Careful With “Authorised Seller” Claims

Even if the products are genuine, saying or implying you’re “authorised”, “official”, or “approved” can be risky if that’s not true.

This is often less about trade marks and more about the Fair Trading Act - customers might reasonably believe they’re buying from an official channel and that can affect buying decisions.

3) Parallel Imports: Genuine Goods, Different Obligations

Parallel importing is where you import genuine branded goods that were originally intended for sale in another country, outside the brand owner’s authorised distribution channel. Parallel importing is not automatically illegal in New Zealand, but it can create additional legal and practical risks - and in many cases, the importer (which could be you) will be responsible for making sure the goods meet New Zealand requirements.

For example:

• The product might not meet New Zealand standards or local labelling requirements (depending on the product type).
• The manufacturer’s warranty might not apply in New Zealand - and you need to be careful how you describe warranty coverage and consumer rights.
• Instructions, safety warnings, or packaging might not be suitable for New Zealand consumers.

If you’re parallel importing, it’s worth getting legal advice early so your product pages, warranty wording, and supply arrangements don’t accidentally create misleading impressions.

What About Reselling Products Online? Website, Marketing And Data Compliance

Online resale is popular because it’s scalable - but it also comes with extra compliance touchpoints (and more evidence trails, since everything is written down).

Website Terms And Customer Policies

When you’re reselling products through a website, you should clearly set out:

• How orders are accepted (and when a contract is formed).
• Payment, shipping timeframes, and delivery boundaries.
• What happens with incorrect addresses, lost parcels, or delays.
• Returns process (keeping in mind the CGA can still apply).
• Limits on liability to the extent legally permitted.

Having properly drafted Website Terms And Conditions helps you run a more predictable operation and reduces disputes when something goes wrong.

Email Marketing And Spam Rules

If you’re collecting emails to promote new stock drops, special offers, or subscriber-only deals, make sure your marketing is compliant under the Unsolicited Electronic Messages Act 2007 (New Zealand’s anti-spam law) - especially around consent, identifying the sender, and having a functional unsubscribe option.

Your marketing strategy is a big part of reselling products, but it needs to be done in a way that doesn’t create customer complaints (or regulator attention) down the track.

Privacy Act 2020: Customer Data

If you collect personal information (like names, addresses, phone numbers, emails, order history), you’ll likely need to comply with the Privacy Act 2020.

That means being transparent about what you collect and why, keeping it secure, and only using it for appropriate purposes.

A Privacy Policy is one of the simplest ways to show customers you’re taking data handling seriously (and it’s often expected by payment providers and platforms too).

Product Compliance: Labelling, Safety And Regulated Goods

Another big “gotcha” with reselling products is that you can be responsible for compliance issues even if you didn’t manufacture the goods - particularly if you’re the importer of record, you re-label/repackage products, or your marketing creates certain impressions about safety or performance.

The exact rules depend on what you’re selling (and whether you’re manufacturing, importing, or simply buying locally and on-selling), but here are common categories where you should slow down and double-check requirements:

• Food (food safety, labelling, allergens, date marking, and food-business registration requirements can apply).
• Cosmetics and skincare (ingredient labelling and product claims).
• Supplements (claims about health benefits can be regulated and risky, and different rules can apply depending on whether a product is treated as a food, medicine, or therapeutic product).
• Alcohol (licensing and marketing restrictions may apply, including for online sales and promotions).
• Children’s products (safety standards can be strict, and recalls can have significant consequences).
• Electrical products (standards, safety certification, and compatibility requirements may apply, especially for imported goods).

Even for “regular” products, you should think about:

• Whether you’re making performance claims you can’t support (e.g. “waterproof”, “medical-grade”, “guaranteed results”).
• Whether any warnings or instructions should be included or translated for New Zealand customers.
• Whether you need a plan to deal with safety issues and potential product recalls.

If you’re unsure whether your product category is regulated, it’s worth getting advice early - it’s much easier (and cheaper) to fix compliance before you scale.

Legal Foundations For A Reselling Business: Structure, Supplier Contracts And IP

When reselling products becomes more than a side hustle, your legal setup matters. It affects tax, liability, supplier negotiations, and how confidently you can grow.

Choose The Right Business Structure

At a high level, you might operate as a sole trader, partnership, or a company. The “right” option depends on your goals, risk profile, and whether you want to bring on investors or business partners later.

If you’re setting up a company, having a clear Company Constitution can help define how decisions are made and what happens if circumstances change (which is especially useful once there are multiple shareholders involved).

Get Your Supplier And Distribution Arrangements In Writing

A lot of reselling businesses rely on supplier relationships - and this is where we often see avoidable disputes.

Common supplier issues include:

• Stock availability changing without notice.
• Disagreements about minimum order quantities or lead times.
• Quality problems and “who pays” for returns.
• Restrictions about where you can sell (e.g. online marketplaces vs your own store).
• Brand guidelines and marketing approvals.

Even if a supplier is friendly and you trust them, written terms are what protect you when there’s pressure on the relationship (for example, when stock is delayed right before a big sales period).

Depending on your setup, you might need a tailored supply agreement, reseller agreement, or distribution arrangement. If you’re negotiating a broader commercial deal (like exclusivity, territory rights, or ongoing service commitments), a clear Service Agreement (or a bespoke commercial contract) can help define obligations and reduce grey areas.

Protect Your Own Brand While Reselling

Many reselling businesses eventually become brands in their own right - even if you’re not manufacturing. Your store name, logo, packaging inserts, online content, and customer community are valuable assets.

To protect what you’re building, you may want to:

• Register your business name / company name appropriately (and check availability).
• Consider trade mark protection for your store brand.
• Use agreements with contractors (e.g. designers, photographers, developers) that clearly assign IP to your business.

This is one of those “do it once, do it properly” areas - because fixing branding and IP issues later can be painful (especially after you’ve built up customer recognition).

Key Takeaways

• Reselling products is generally legal in New Zealand, but you need to stay compliant with consumer law, intellectual property rules, and any supplier contract terms.
• The Fair Trading Act 1986 means your product descriptions, pricing claims, “authenticity” statements and advertising must not mislead customers.
• The Consumer Guarantees Act 1993 can apply even if you’re “just a reseller”, so you should have clear processes for faults, returns and customer complaints (and check whether you can contract out for eligible B2B sales).
• Reselling branded goods is often allowed, but you should avoid counterfeit risk, be careful with “authorised seller” claims, and take extra care if you’re importing goods outside authorised channels.
• Online reselling usually requires well-drafted website terms, clear customer policies, anti-spam compliant marketing, and privacy compliance if you collect customer data.
• Some products have extra compliance rules (like food, cosmetics, supplements, children’s products, alcohol, and electrical goods), and the rules can differ depending on whether you’re the importer, so check your category before you scale.
• Strong legal foundations (business structure, supplier contracts, and brand/IP protection) help you grow your reselling business with fewer nasty surprises.

If you’d like help setting up your reselling business the right way - including your Website Terms And Conditions, Privacy Policy, supplier contracts, or brand protection - you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.