Call for Change as Study Reveals 84% of Kiwis Deceived by Foreign-Owned .co.nz Websites
Key Findings:
- 84% of New Zealanders have been duped by overseas-owned businesses masquerading behind .co.nz domains
- 85% believe .co.nz domains should be restricted to NZ-owned businesses only
- 98% prefer to purchase from NZ-owned businesses when price and product are the same.
"Overseas companies are exploiting New Zealand's digital identity to mislead consumers, and it's potentially costing our economy billions of dollars annually," warns Jamie Farmer, Managing Director of Buy Kiwi. "If every Kiwi household diverted just $50 per week from overseas companies to New Zealand-owned businesses, it would inject more than $5 billion per year back into our local economy."
The stark warning comes as new research exposes a critical vulnerability in New Zealand's domain name system, with an alarming 84% of New Zealanders having been deceived by overseas-owned companies using .co.nz domain names to create a false impression of local ownership.
"Unlike countries such as Australia, where .com.au domains require proof of local business registration, New Zealand's domain system is open to anyone with an email address and credit card," explains Farmer. "This provides easy access for potential scammers to exploit .co.nz domains and create a perception of New Zealand association, sometimes within hours."
The current system leaves New Zealand consumers vulnerable to misleading practices. "We don't let just anyone enter our country or purchase land without checking their credentials, yet we allow anyone in the world to secure a .co.nz domain name instantly," says Farmer. "One must question why overseas companies would want to use a co.nz domain name if not to create a perception of being associated with New Zealand?"
With Christmas shopping in full swing and more Kiwis than ever shopping online, Farmer urges consumers to be vigilant about where they're spending their money. "Shopping with New Zealand-owned businesses means you're automatically covered by the Consumer Guarantees Act, giving you clear rights and protections. You also have access to local customer support and reliable delivery times - particularly crucial during the busy Christmas period."
The survey findings come as a petition has been put forward to the New Zealand government calling for .co.nz domain names to be restricted to New Zealand entities and individuals only. "Our digital assets should be viewed as strategic assets that create value for New Zealand, and we should protect them appropriately to increase their value over time," adds Farmer.
"Shoppers using Buy Kiwi can be completely confident they're supporting genuine New Zealand-owned businesses. We verify every business on our platform to ensure they meet our requirement of at least 80% Kiwi ownership. It's part of our commitment to keeping more money in the New Zealand economy and supporting local communities."
Buy Kiwi, which launched in 2023, is an online shopping marketplace exclusively for New Zealand-owned businesses. The platform has already attracted thousands of Kiwi-owned businesses and lists over 50,000 products, providing consumers with confidence they are supporting New Zealand companies.
Key Facts:
Key Findings:
- 84% of New Zealanders have been duped by overseas-owned businesses masquerading behind .co.nz domains
- 85% believe .co.nz domains should be restricted to NZ-owned businesses only
- 98% prefer to purchase from NZ-owned businesses when price and product are the same.
About us:
About the Survey
The research was conducted by Buy Kiwi during October and November 2024, surveying 1,074 New Zealand consumers via social media and email campaigns.
*The $5.2 billion economic impact figure is calculated based on New Zealand's household estimates from Stats NZ of approximately 2 million household each diverting $50 per week from overseas to local businesses ($50 × 52 weeks × 2 M households). Actual potential impact could be higher.*
About Buy Kiwi
Buy Kiwi is New Zealand's largest online shopping marketplace exclusively for Kiwi-owned businesses. Founded during the COVID-19 lockdowns, the platform helps NZ businesses reach customers nationwide while ensuring consumers can easily identify and support genuine New Zealand-owned companies.
Contact details:
Frederika Walls
021982105
frederika@newromans.co
