Is Reselling Products Legal In New Zealand?

Reselling products can be a great way to start (or scale) a business in New Zealand. Maybe you’re buying stock wholesale and selling it online, importing popular items to sell locally, or sourcing clearance products and reselling them at a margin.

But there’s usually one big question before you go all-in: is reselling products legal in New Zealand?

The good news is that, in many cases, yes - reselling is legal. The catch is that how you source, advertise and sell the products matters. If you get it wrong, you can run into issues around consumer law, misleading claims, product safety, intellectual property, and even customs or tax compliance.

This guide breaks down the key legal rules and practical steps to help you build a reselling business that’s set up properly and protected from day one - while also helping you understand the main risks to watch out for.

Is Reselling Products Legal In New Zealand?

In general, reselling products is legal in New Zealand. There’s no blanket law that stops you from buying legitimate goods and selling them again for profit.

That said, “legal” depends on what you’re reselling and how your business operates. For example, reselling can become risky or unlawful if:

• the products are counterfeit or stolen
• your advertising is misleading (even accidentally)
• you can’t meet your obligations under consumer law (for returns, refunds, warranties and guarantees)
• the products don’t meet product safety requirements
• you misuse someone else’s trade mark, branding, photos or copyrighted materials
• you breach a supplier’s distribution terms or contractual restrictions
• you import products without meeting customs, labelling or compliance requirements

So, if you’re trying to answer whether reselling products is legal in New Zealand, the practical answer is: yes - but you need to comply with the rules that apply to sellers, especially consumer and advertising rules.

Reselling vs “Authorised” Selling

A common confusion for business owners is thinking you need permission from a brand or manufacturer to resell their goods. In many situations, you don’t - provided the goods are genuine and you’re not implying an official relationship that doesn’t exist.

Where you need to be careful is if your marketing, website, product listings or store setup makes it look like you’re an official stockist, authorised distributor, or part of that brand. That can create trade mark and fair trading risks.

What About Parallel Importing (“Grey Market” Imports)?

New Zealand generally allows parallel importing of genuine goods (often called “grey market” stock) in many situations. However, parallel importing can still create risk if you:

• mislead customers about warranties, after-sales support, model/version differences, or compatibility (for example, plugs, voltage, language, region locks)
• sell goods that don’t comply with New Zealand safety standards or labelling rules
• breach contractual restrictions you agreed to with a supplier or distributor

So even if the goods are genuine, you still need to ensure your listings and customer communications are accurate and the product can be legally supplied in New Zealand.

What Laws Do Resellers Need To Follow In New Zealand?

When you’re reselling products, the legal risk usually isn’t “the act of reselling” - it’s what happens around it: how you describe the product, what you promise customers, and whether you handle problems properly.

Here are the core laws and legal areas that commonly apply to reselling businesses in New Zealand.

Fair Trading Act 1986 (Advertising And Misleading Claims)

The Fair Trading Act 1986 is one of the biggest legal obligations for resellers because it regulates how you market and represent what you sell.

In plain terms: you must not mislead customers (and you must not be likely to mislead them either).

Common reseller “oops” moments under the Fair Trading Act include:

• listing a product as “new” when it’s refurbished, used, ex-demo or open-box
• claiming a product is “authentic” or “original” without being sure it’s genuine
• advertising a discount using an inflated “was” price (pricing claims need to be accurate)
• saying products are “in stock” when you’re actually waiting on your supplier
• using “limited edition” or “limited time” claims that aren’t true
• suggesting you’re officially connected with a brand when you’re not

If your reselling business uses influencers, social media ads or email marketing, it’s especially important that the claims remain accurate across every channel - not just on your website.

Consumer Guarantees Act 1993 (Refunds, Repairs And Guarantees)

If you sell products to consumers (not just to other businesses), the Consumer Guarantees Act 1993 will often apply. This law gives consumers automatic rights around product quality and performance.

Even if you didn’t manufacture the product, if you’re the seller, customers will usually come to you first - and you’ll need a clear process for dealing with faults, replacements and remedies.

For resellers, a key point is that you generally can’t “contract out” of consumer guarantees when selling to consumers in the ordinary way. So if you’re thinking of putting “no refunds” on your store, it’s worth pausing and getting advice first - because that can be unlawful or misleading depending on the situation.

However, there are limited situations where businesses can contract out of the Consumer Guarantees Act for business-to-business sales (where both parties are “in trade”). To do this properly, the contracting-out clause usually needs to be in writing, and it generally needs to be fair and reasonable in the circumstances - so it’s worth getting advice and ensuring your terms and sales process actually support it.

Product Safety And Labelling

Some products come with extra safety requirements, mandatory standards, labelling rules, or restrictions (particularly if you import goods). The exact requirements depend on the product type - for example, items aimed at children, cosmetics, electrical products, and certain food-related items can have higher compliance expectations.

In New Zealand, product safety obligations can arise under a mix of regimes - including consumer product safety rules (often enforced through the fair trading framework), as well as sector-specific rules (for example, electrical safety requirements for certain electrical items, and food rules for food products). As a reseller, you should treat safety and compliance as part of your sourcing checklist. It’s not just about whether a supplier will sell to you - it’s whether the goods can be legally sold in New Zealand, and whether you can demonstrate compliance if something goes wrong.

Privacy Act 2020 (Customer Data)

Most reselling businesses collect personal information at checkout (names, emails, delivery addresses, payment confirmations, order history). If you do, you need to handle that information responsibly under the Privacy Act 2020.

In practice, this usually means you should have a Privacy Policy that clearly explains what you collect, why you collect it, where you store it, who you share it with (for example, couriers and payment providers), and how customers can request access or corrections.

If you use email marketing, retargeting ads, or analytics tracking, it’s also important to be transparent about it - and not collect more data than you actually need.

Tax And Customs (Especially If You Import)

If you’re importing goods to resell, you should also factor in tax and border compliance - for example, GST obligations, income tax, customs duties, and import processes. Depending on the products, there may also be additional requirements at the border (including documentation and biosecurity checks). It’s a good idea to get accounting and customs advice early so your pricing, margins and compliance processes are set up properly.

Where Do Reselling Businesses Get Into Trouble?

Most resellers don’t set out to break the law. The problems usually come from moving quickly, relying on supplier promises, or copying competitor listings and ads without checking if the details are correct.

Here are some of the most common risk areas we see for small businesses.

Counterfeit Or “Grey Market” Stock

Buying inventory online (especially via overseas marketplaces or unknown suppliers) can expose you to counterfeit goods. Selling counterfeit products can create serious legal risk - including trade mark infringement and consumer complaints.

Even where goods are genuine, you might be dealing with “grey market” stock (products intended for a different region). That can raise issues like:

• different power requirements or plugs
• manuals not in English
• missing safety warnings
• manufacturer warranties not applying in New Zealand

If your product doesn’t come with a manufacturer warranty in NZ, you need to be careful how you describe warranty coverage so you don’t mislead customers.

Using Someone Else’s Photos, Descriptions Or Branding

It’s tempting to copy product images and descriptions from a supplier or another website - but that can be a copyright issue. It can also create misleading impression issues if your listing implies you’re officially connected to a brand.

A safer approach is to:

• use product photos you took yourself (or have permission to use)
• write your own descriptions (based on accurate specs)
• be careful with brand names - you can usually refer to them to identify the product, but avoid making it look like you’re an official store unless you are

Overpromising On Delivery Times Or Stock Availability

Fast shipping is a competitive advantage - but only if you can deliver it.

If you’re “dropshipping” or ordering products on demand after a customer pays, be upfront about lead times. Saying “ships today” or “in stock” when it isn’t can be misleading under the Fair Trading Act.

Unclear Returns And Refund Policies

Every reseller should have clear customer-facing terms for returns, exchanges, change-of-mind scenarios, and what happens with faulty products.

The biggest trap is using a generic template that doesn’t match how your business actually operates. If your policy conflicts with the Consumer Guarantees Act or is confusing, it can create both legal risk and customer disputes.

Many product-based businesses use tailored Business Terms to clearly set expectations around:

• ordering and payment
• delivery and risk of loss
• returns process
• faulty products
• limits that are legally allowed (especially for business-to-business sales)

Do You Need Permission To Resell A Product?

Often, you don’t need permission to resell a genuine product you lawfully acquired. But some reselling models introduce extra layers where permission, contracts or licences matter.

If You’re Buying From A Wholesaler Or Distributor

If you’re sourcing stock from a wholesaler, your right to resell usually comes from your supply arrangement. Your supplier might impose terms about:

• where you can sell (NZ only vs overseas)
• minimum advertised pricing
• how you can use the supplier’s marketing materials
• quality control or product handling
• exclusivity (or non-exclusivity)

This is where a properly drafted Supply Agreement can be a big help - it clarifies what you’re buying, when you’re paying, what happens if stock is faulty, and what each party is responsible for.

If You’re Dropshipping

Dropshipping is still “reselling” in many practical senses - you’re selling to the end customer, even if you never touch the stock. That means you’re still likely on the hook for consumer law obligations, and you need supplier terms that support your promises to customers.

A common issue is having a mismatch between:

• what you promise the customer (delivery timeframes, product quality, refunds), and
• what your supplier actually does (shipping delays, different product specs, no returns)

That mismatch is where disputes begin, so getting the supplier relationship properly documented matters.

If You’re Reselling Digital Products Or Content

Digital products (like downloadable files, software licences, or access codes) can bring in more IP and licensing complexity. In many cases, you can’t resell digital goods unless the licence explicitly allows it.

If your store includes software, subscriptions, or access-based products, it’s worth getting advice early to make sure you’re not breaching licensing restrictions.

How Do You Set Up A Reselling Business Properly?

Once you’re confident your products are legitimate and compliant, the next step is setting up your business with the right structure and legal foundations - so you can grow confidently without nasty surprises.

1. Choose The Right Business Structure

Your structure affects tax, liability, ownership and how you bring in business partners or investors later.

Common options include:

• Sole trader (simpler setup, but you’re personally liable for business debts and risks)
• Company (a separate legal entity, often used to help manage risk and support growth)
• Partnership (shared ownership, but can get messy without the right agreement)

If you set up a company, it’s also worth considering whether you need a Company Constitution to help manage decision-making, shares, and governance as you grow.

If you’re going into business with someone else, a tailored Partnership Agreement can reduce the risk of disputes later (especially around profit share, roles, and what happens if someone wants out).

2. Lock In Clear Supplier And Logistics Terms

Your reselling business is only as reliable as your supply chain.

At a practical level, try to get clarity on:

• stock availability and lead times
• minimum order quantities (MOQs)
• faulty stock and returns to supplier
• warranty handling processes
• who covers shipping costs (including returns)

If you’re relying heavily on one supplier, formalising the relationship becomes even more important - it can protect your margins and your reputation.

3. Put The Right Customer-Facing Legal Terms In Place

Your online store, invoices, quotes and order confirmations are where expectations are set - and where disputes usually begin if things aren’t clear.

Depending on your model, you might need:

• website terms and conditions (especially for eCommerce)
• clear returns/refunds information aligned with consumer law
• a process for handling faulty items
• privacy and data handling disclosures

This is one of those areas where DIY templates can create risk because the “standard” clauses often don’t match your actual processes (like pre-orders, backorders, international shipping, or refurbished goods).

4. Protect Your Own Brand

Even if you’re reselling other products, you’re still building your own brand (business name, logo, social handles, packaging and customer experience).

If your brand is a key asset, consider trade mark protection early - it’s much easier to protect from day one than to rebrand later because someone else registered the name.

If you’re unsure whether your name is available or protectable, getting advice early can save you time and marketing spend.

5. Be Careful If You Hire Staff Or Contractors

Reselling can start as a one-person operation, but it often grows quickly - especially once you’re packing orders, dealing with returns, and managing customer support.

If you hire help, make sure you correctly classify workers (employee vs contractor) and use written agreements. For employees, an Employment Contract helps set expectations around duties, pay, confidentiality, and termination processes.

Getting these basics right can prevent disputes and protect your business operations as you scale.

Key Takeaways

• Reselling products is legal in New Zealand in many cases, but you need to comply with consumer, advertising, product safety, and IP-related obligations.
• The Fair Trading Act 1986 is critical for resellers - your product listings and marketing must not be misleading (including around authenticity, condition, pricing and delivery timeframes).
• If you sell to consumers, the Consumer Guarantees Act 1993 will often apply, meaning customers may have rights to remedies for faulty products even if you didn’t manufacture them.
• In some business-to-business situations, it may be possible to contract out of the CGA - but it generally needs to be done clearly in writing and be fair and reasonable.
• Be careful when sourcing stock to avoid counterfeit goods and “grey market” issues, and make sure your warranty and product claims match reality.
• Clear supplier terms (often documented in a Supply Agreement) and customer-facing terms (like Business Terms) can help prevent disputes and protect your margins.
• If you collect customer information, you should handle it responsibly and have a clear Privacy Policy aligned with the Privacy Act 2020.
• If you import goods, factor in GST and other tax obligations, plus customs duties and border compliance requirements.
• Setting up the right structure and documents early (like a Company Constitution or Partnership Agreement) can make it much easier to grow without legal headaches.

If you’d like help setting up your reselling business properly - or you want a lawyer to review your supplier terms, website terms, or compliance risks - you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.