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Consumer Guarantees Act Updated 01 Mar 2009

Putting it right

If something goes wrong, you have the right to insist that the seller or service provider fixes things.

Generally speaking, this means the retailer who sold you the goods or services must sort out the problem. If the stitching comes apart on your fairly new shoes, you don't have to track down the manufacturer or importer, you simply take them back to the shop.

If the problem is minor, and can be fixed, the retailer can choose to either repair, replace or refund.

A service provider must fix the problem within a reasonable time.

If the problem cannot be fixed, or cannot be put right within a reasonable time, or is substantial, you can:

  • Reject the product and choose a replacement of the same type or similar value or a full refund of your purchase price; or
  • Claim compensation for any drop in the value of the product or service.
  • Cancel the service contract, pay for any satisfactory work already done, and get someone else to finish the repairs; or
  • Have it repaired elsewhere and recover the costs from the retailer, if they refuse to fix a faulty product, or fail to do so in a reasonable time.

When you have the right to reject the goods, sellers cannot just offer a credit note. If you want a refund, you are entitled to it - by cash, cheque or credit card charge reversal.

Substantial means:

  • A reasonable consumer wouldn't have bought the goods if they'd known about the fault.
  • The goods are significantly different from their description, sample or demonstration model.
  • The goods are substantially unfit for purpose.
  • The goods are unsafe.

Consequential loss

In addition to these rights, consumers may also claim for any reasonably foreseeable extra loss that results from the initial problem. If your new washing machine won't work properly you can claim for laundry costs or the cost of hiring a replacement machine while the first one is being fixed.

If you have to post or courier goods back to be repaired, you don't have to pay for those costs.

The compensation for consequential loss must put you back in the position you would have been in if the goods or service hadn't been faulty.

Guarantees on replacement models

When a faulty product is replaced, any manufacturer's warranty on the product usually runs only from the original purchase date.

So, if a six month old washing machine is replaced because it is faulty, and there was originally a 12 month manufacturer's warranty on it, then this warranty will have six months to run on the new machine.

However, the Consumer Guarantees Act applies to the replacement, so you will still have all the rights you're entitled to when buying a brand new machine.

Manufacturers and importers

If there is a problem you can complain to the manufacturer, if it has an office in New Zealand, or where the goods are imported, to the importer or distributor.

Where there has been a breach of the Act, manufacturers and importers are obliged to:

  • Pay compensation, and/or pay for any loss in value; and
  • Honour any express warranty they gave which gives the consumer greater protection than in the Act.

Complaining to the manufacturer is useful when, for example, the retailer has gone out of business or is proving hopeless to deal with. But in most cases it should be easier to insist on your rights directly with the retailer.

If a product has parts made by different manufacturers, you can claim against any or all of them. In practice however, your best bet may be to contact the one whose name is on the product.

Taking it further

You may be in the right, but what do you do if the trader refuses to accept what the law says?

If, for whatever reason, you can't get satisfaction on a complaint, you have several options:

For more help