Buying from professional traders

If the seller is a professional trader you still have the protection of the Contractual Remedies Act. But you're also covered by the Fair Trading Act and, in some cases, the Consumer Guarantees Act and the Sale of Goods Act.

To get an idea if the seller is a professional trader, look at their previous sales. If they have several listings for the same type of item, or if they have sold similar items in the past, they are probably a professional trader. It doesn't matter if they think of it as a hobby or if they've kept their day job.

Misleading information

The Fair Trading Act says professional traders can't mislead consumers about the condition or history of the goods they sell. You can take them to the Disputes Tribunal if they do.

Case study: the $2050 van
A diesel van sold on Trade Me for $2050. The trader stated the van had no outstanding road-user charges but the buyer subsequently discovered it did – $2150 worth. The Motor Vehicle Disputes Tribunal found the trader's statement was misleading and ordered her to pay the outstanding costs to the buyer.

Acceptable quality

If you buy online from a trader at a fixed price, you'll have the protection of the Consumer Guarantees Act (CGA). The Act says goods must be of acceptable quality and fit for purpose.

But if you bid on an item being auctioned by a trader and "win" it, you won't have any comeback under the CGA. That's because the Act excludes items bought through auction or competitive tender – a legal loophole that needs to be closed. Trade Me also wants to see this auction exemption under the CGA closed off.

While the CGA doesn't apply to auctions, the Sale of Goods Act does – unless the trader has contracted out of it. The Act says goods sold by professional traders (but not private individuals) must be of "merchantable quality" and "fit for purpose". You have grounds for a claim against the trader if the goods fail to meet these criteria.

Case study: the $5600 VW
A 1997 VW Golf sold on Trade Me by auction for $5600. A week later, the VW’s air conditioning (AC) unit exploded, holing the radiator and causing $3500 damage. The car was advertised as having AC and the buyer said the trader had assured her it was working as it should. The Motor Vehicle Disputes Tribunal found the unit was defective and the trader had therefore breached the "merchantable quality" warranty in the Sale of Goods Act. The trader, who failed to appear at the hearing, was ordered to pay the repair costs.