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New Consumer Protection Act to safeguard consumers

Nuku'alofa, Tonga

Child consumer in a supermarket. 30 March 2023. Photo: © UNICEF.

Tonga’s Parliament passed a new Consumer Protection Act last week, which substantially updates Tonga’s legal framework to safeguard consumer rights and promote fair trading.

The new act establishes clear rules around misleading and unfair practices and addresses emerging issues around online activities. It introduces new investigative powers for inspectors and new remedies to promote compliance.

“The new act marks a major step forward for consumer rights in Tonga,” said MTED Chief Executive Officer, Distaquaine Tuihalamaka. “It ensures that all Tongans have access to fair treatment, accurate information, and safe products when making purchasing decisions. This will benefit both businesses and consumers and build confidence in Tonga’s markets.” 

“It ensures that all Tongans have access to fair treatment, accurate information, and safe products when making purchasing decisions. This will benefit both businesses and consumers and build confidence in Tonga’s markets.” 

The Act was developed with support from the Asian Development Bank’s (ADB) Pacific Private Sector Development Initiative (PSDI),

The enactment of the new law is the culmination of a multi-year reform program led by the Ministry of Trade and Economic Development (MTED), with PSDI support.

The ADB stated that It follows extensive consultations with government agencies, businesses, and consumers, and Cabinet’s 2023 endorsement of the National Policy on Consumer Protection and Competition.

“Consumer protection laws help ensure markets work for everyone. They safeguard consumers, strengthen trust between buyers and sellers, and create a clearer framework for businesses to compete fairly,” said ADB Pacific Subregional Office Director Aaron Batten. “ADB is proud to partner with Tonga on these important reforms, which highlight our support for inclusive, well-regulated markets across the Pacific.”

The Consumer Protection Act 2025 will come into effect after it receives the Royal assent.

PSDI is an ADB technical assistance program undertaken in partnership with the governments of Australia and New Zealand. It supports the ADB’s 14 Pacific developing member countries to improve the enabling environment for business and to achieve inclusive, private sector-led economic growth. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.