Labour is campaigning on a new law to stop businesses "tricking" people into unnecessary costs.

If elected on November 7, Labour would introduce its "fair go law" to deal with surprise fees, "worthless" insurance and subscriptions that are difficult to cancel.

"It's more than just frustrating, it's a real burden on families who are already struggling with the high cost of living. Labour will put a stop to it," leader Chris Hipkins said.

Labour's law would apply to cars, electronics, phones, subscriptions, ticket sales and gyms, and include:

  • Banning "junk" car insurance, like paint insurance and mechanical breakdown cover with many exclusions.
  • Stopping the "hard sell" of extended warranties on electronics and whiteware.
  • Requiring all mandatory fees, including on ticket sales, to be included in the upfront price.
  • Making every subscription service and gym membership easy to cancel.
  • Banning "unfair" exit fees, excessive notice periods and unclear auto-renewals on phone and internet contracts.

Labour's commerce and consumer affairs spokesperson Arena Williams said the proposed law was simple: "Don't make money by tricking hard-working people."