Business briefs

Launch of the Business Investor Visa  

The government has introduced the Business Investor Visa (BIV), a new immigration pathway aimed at attracting experienced international investors to strengthen New Zealand’s economy. The launch of the BIV follows the closure of the Entrepreneur Work Visa and represents a significant shift toward sustained investment in established New Zealand businesses.

The BIV offers two residency pathways:

• Work-to-residency (3 years) – minimum investment threshold of $1 million, or

• Fast-track residency (12 months) – minimum investment threshold of $2 million.

Investments must be directed into an existing, actively operated New Zealand business. Other key requirements include demonstrated business experience by the investor, investment in a business

that employs at least five full-time staff, and compliance with approved and qualifying business categories.

For New Zealand business owners, the BIV presents an opportunity to attract new capital, expand operations and generate employment that, in turn, will promote long-term economic growth.

Responsible AI usage

AI is advancing and reshaping how businesses operate. However, if you adopt AI without a clear strategy it may expose your business to serious risk – including, without limitation, bias, errors, privacy breaches and cybersecurity threats.

To help businesses navigate this, the Ministry of Business, Innovation and Employment has released Responsible AI Guidance for Businesses. The Guidance outlines practical steps to ensure AI use is responsible and aligns with your commercial goals, legal obligations and ethical standards.

Key recommendations include:

• Defining your purpose for using AI and starting with low-risk projects

• Maintaining human oversight to prevent errors and unintended consequences

• Reviewing governance, risk management and compliance processes

• Choosing trusted AI providers and implementing strong data protection methods, and

• Training staff to understand AI’s capabilities and limitations.

For a more comprehensive overview, we encourage you to read the Guidance and consider seeking legal advice to protect your business as you implement AI. While AI can deliver significant benefits, successful implementation requires a cautious and comprehensive approach.

HelloFresh and the Fair Trading  Act 1986 

In the Winter 2025 edition of Commercial eSpeaking, we reported on the Commerce Commission’s allegations against HelloFresh for misleading conduct under the Fair Trading Act 1986 (FTA). 

The commission’s prosecution focused on an 18-month cold call campaign, during which former customers of HelloFresh were offered discount vouchers without a clear explanation that accepting those offers would result in subscriptions being reactivated, consequently triggering customer account charges. 

Recently, in the Auckland District Court, it was found that the way the discount vouchers were presented created a misleading overall impression for former customers. HelloFresh was fined $845,000 as a result.

The above decision underscores the serious consequences of breaching the FTA. This is particularly relevant now, as the government has proposed to substantially increase the penalties for non-compliance. At present, the maximum penalties for misleading and deceptive conduct under the FTA are capped at $200,000 for individuals and $600,000 for businesses. The proposal to increase these limits will allow penalties to reach the greater of: 

• $1 million for individuals 

• $5 million for businesses

• Three times the value of any commercial gain or loss avoided, or 

• The value of the transaction(s) involved.

Although a new civil regime will also apply for most breaches, the most serious or deliberate conduct will remain a criminal offence. These changes are expected to take effect by late 2026. 

This announcement marks a significant increase in potential liability, emphasising the need for businesses to ensure advertising, pricing and promotional terms are accurate and transparent. Disclaimers buried in fine print may not be enough to correct misleading impressions. With penalties expected to become significantly higher, compliance with the FTA is essential to avoid financial and reputational consequences. 

"DISCLAIMER: All the information published in Commercial  E-Speaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are the views of the authors individually and do not necessarily reflect the view of this firm. Articles appearing in Commercial E-Speaking may be reproduced with prior approval from the editor and credit being given to the source."

Content copyright © NZ LAW Limited, 2025. Editor: Adrienne Olsen. E: adrienne@adroite.co.nz  M: 029 286 3650.