The Act covers the goods (new and second-hand) and services ordinarily purchased for personal, domestic or household use.

Those "goods" include pretty much everything in and around the home - from appliances to vehicles, furniture to food. Gas, electricity, water and computer software are also covered.

"Services" include things done by tradespeople like plumbers and painters, professionals like dentists and lawyers, after-sales and repair services from shops, and all the services you get from insurers, petrol stations, travel agents ... in general, if you pay for it, it's covered.

The Act applies to gifts. If you are given something, you have the same rights as if you bought it yourself, and can seek redress directly for any problem. It also applies to goods that you hire.

What it doesn't cover

The Act only applies if you buy goods or services from sellers "in trade". This means it does not cover private sales or goods sold by auction or tender. However, it does cover goods sold in second-hand shops and sales, and goods sold over the internet by New Zealand businesses.

The Act does not cover the purchase of houses, although it does cover house repairs. Nor does it cover goods or services usually bought for commercial use, such as medical equipment or the installation of industrial machinery.

No contracting out

Sellers cannot exempt themselves from their obligations under the Act, even if they put it in a contract. So, if a retailer puts up a sign saying "No refunds or exchanges" it is meaningless. You still have full rights under the Act.

This also means guarantees and warranties cannot state "No consequential losses are covered," because attempts to contract out of the Act may mislead consumers about their rights.

The Commerce Commission may use the Fair Trading Act to prosecute traders who attempt to contract out of the Act.

However, sellers can contract out of the Act when goods are used for business. When a product is ordinarily purchased for domestic use but is also used for business purposes - like a mobile phone, for example - the Act will allow a seller to contract out of the Act. Any contracting out must be done in writing at the point of sale.