Consumer
99 articles — plain English explanations of NZ consumer law.
Are extended warranties worth it in New Zealand?
In New Zealand, extended warranties offer additional protection beyond existing consumer rights under the Consumer Guarantees Act 1993 (CGA). The CGA provides statutory guarantees that goods must be of acceptable quality and fit for purpose for a reasonable time. The Fair Trading Act 1986 (FTA) prevents sellers from making misleading claims about extended warranties or statutory rights.
"As is, where is" sales: Are they legal?
In New Zealand, "as is, where is" clauses in sales generally cannot override consumer protections under the Consumer Guarantees Act 1993 and Fair Trading Act 1986 when buying from a business. However, these clauses have more weight in private sales between individuals, where statutory protections are limited. Misleading conduct remains prohibited in trade transactions.
Bait advertising: What it is and why it's illegal
Bait advertising, an illegal practice in New Zealand, involves advertising goods or services at attractive prices or terms to lure customers, intending to sell them a more expensive alternative. It is prohibited primarily by the Fair Trading Act 1986, which outlaws misleading and deceptive conduct concerning product availability, price, and features, ensuring consumers can make informed purchasing decisions.
Bank errors: What to do if you are overcharged
In New Zealand, consumers overcharged by banks may have rights under the Consumer Guarantees Act 1993, which requires services to be performed with reasonable care and skill, and the Fair Trading Act 1986, which prohibits misleading or deceptive conduct. Remedies can include requiring the error to be fixed or seeking compensation.
Building and renovation services under the CGA
New Zealand consumer law, including the Consumer Guarantees Act 1993 and Fair Trading Act 1986, protects consumers engaging building and renovation services. These laws ensure services are performed with reasonable care and skill, are fit for purpose, completed within a reasonable time, and are not subject to misleading conduct or unfair contract terms by businesses.
Buy Now, Pay Later (Afterpay/Laybuy): Consumer protections
In New Zealand, purchases made using Buy Now, Pay Later (BNPL) schemes are protected by the Consumer Guarantees Act 1993, ensuring goods and services meet acceptable standards. The Fair Trading Act 1986 also prohibits misleading conduct by retailers and BNPL providers. Consumers retain rights regarding product quality and accurate information, regardless of the payment method.
Buying a car from a dealer: Your CGA rights
When buying a car from a dealer in New Zealand, the Consumer Guarantees Act 1993 ensures cars are of acceptable quality and fit for purpose. The Fair Trading Act 1986 prohibits dealers from making misleading or false representations about vehicles. Consumers have rights to remedies if these guarantees or fair trading obligations are breached.
Buying digital products: Software, games, and the CGA
In New Zealand, digital products like software and games are covered by consumer laws. The Consumer Guarantees Act 1993 ensures they are of acceptable quality and fit for purpose, while the Fair Trading Act 1986 prohibits misleading representations about them. Consumers have rights to remedies if these laws are breached.
Buying houses: Why the CGA doesn't cover real estate
The Consumer Guarantees Act (CGA) generally does not apply to the purchase of a house in New Zealand because a house is considered 'real property' rather than 'goods'. However, the Fair Trading Act (FTA) provides protection against misleading or deceptive conduct by those in trade, such as real estate agents or developers, during a property transaction.
Buying pets: Are animals considered "goods" under the CGA?
In New Zealand, pets bought from a business are generally considered 'goods' under the Consumer Guarantees Act 1993, entitling consumers to protections like acceptable quality. The Fair Trading Act 1986 also prohibits misleading claims about pets. These laws apply when a pet is purchased from a seller 'in trade', not typically private sales.
Can a store legally have a "No Refunds" sign?
In New Zealand, stores cannot legally display blanket "No Refunds" signs if goods are faulty or do not meet consumer guarantees. Such signs may mislead consumers about their rights under the Consumer Guarantees Act 1993 and could breach the Fair Trading Act 1986. Consumers are generally entitled to a refund, repair, or replacement for faulty items, but not typically for a change of mind.
Can a store refuse a refund if you don't have the original packaging?
In New Zealand, if a product is faulty or doesn't meet consumer guarantees, a store generally cannot refuse a refund or other remedy solely because the original packaging is missing. Consumer rights under the Consumer Guarantees Act 1993 focus on the product's quality, not its packaging. However, for 'change of mind' returns, stores can set their own conditions, such as requiring original packaging.
Can you get compensation for damage caused by a faulty product?
In New Zealand, consumers may be compensated for damage caused by a faulty product under the Consumer Guarantees Act 1993, specifically for reasonably foreseeable loss or damage. The Fair Trading Act 1986 also offers remedies if the fault resulted from misleading representations. Rights generally apply to goods purchased for personal use, not always for business.
Can you stop a credit card payment for faulty goods?
In New Zealand, consumers have rights under the Consumer Guarantees Act 1993 and Fair Trading Act 1986 if goods are faulty. While these laws outline remedies from suppliers, stopping a credit card payment (chargeback) is typically governed by credit card agreements and scheme rules. However, a supplier's breach of these consumer laws can provide grounds to request a chargeback from your bank.
Change of mind: Do you have a legal right to a refund?
New Zealand consumer law generally does not grant consumers a legal right to a refund or return goods simply because they have changed their mind. Rights to return or remedies typically arise if goods are faulty, not fit for purpose, or inaccurately described, as covered by the Consumer Guarantees Act 1993.
Chargebacks: How to use your bank to get a refund
A chargeback is a process where a bank or card issuer reverses a payment transaction, returning funds to a cardholder. While not a direct legal right, the grounds for a chargeback often arise from breaches of consumer protections under the Consumer Guarantees Act 1993 (e.g., faulty goods) or the Fair Trading Act 1986 (e.g., misleading conduct).
Claiming against an overseas manufacturer under NZ law
New Zealand consumer law, primarily the Consumer Guarantees Act 1993 and the Fair Trading Act 1986, provides rights for consumers regarding goods purchased from overseas manufacturers. While enforcement against an overseas entity can be complex, local suppliers (importers/retailers) are typically liable under these Acts for goods they supply, even if manufactured offshore.
Consumer Guarantees Act NZ: Your Rights When Buying Goods or Services
The Consumer Guarantees Act 1993 (CGA) protects NZ consumers by requiring goods and services to meet certain standards, such as acceptable quality and fitness for purpose. If these guarantees are breached, consumers have rights to remedies like repair, replacement, or refund, depending on the failure's severity. The Act does not apply to all transactions, like commercial sales where parties contract out.
Consumer protection against predatory lending
New Zealand consumer law provides protections against predatory lending practices primarily through the Fair Trading Act 1986 and the Consumer Guarantees Act 1993. These Acts prohibit misleading conduct, unsubstantiated claims, unfair contract terms, and unconscionable conduct by lenders. They also require lending services to be provided with reasonable care and skill, and to be fit for purpose.
Consumer rights when buying products from overseas websites
New Zealand's Consumer Guarantees Act 1993 and Fair Trading Act 1986 primarily apply to businesses operating in New Zealand. While these laws set out important consumer rights, enforcing them against overseas websites or suppliers without a New Zealand presence can be very challenging due to jurisdictional limitations and practical difficulties.
Consumer rights with airlines: Flight delays and cancellations
New Zealand consumer law provides rights for airline passengers experiencing flight delays or cancellations. The Consumer Guarantees Act requires services to be performed with reasonable care and skill, allowing for remedies like refunds or compensation for foreseeable losses. The Fair Trading Act prohibits misleading airline conduct regarding delays or available options.
Courier delays and lost parcels: Who is liable?
In New Zealand, consumers have rights regarding delayed or lost parcels under the Consumer Guarantees Act 1993 and the Fair Trading Act 1986. The law dictates that courier services must be provided with reasonable care and skill within a reasonable timeframe. Sellers arranging delivery are responsible for ensuring goods reach the buyer in acceptable condition. Misleading information about delivery can breach the Fair Trading Act.
Credit Contracts and Consumer Finance Act (CCCFA) basics
New Zealand consumer law is governed by key Acts. The Credit Contracts and Consumer Finance Act 2003 sets out responsible lending and disclosure rules. The Consumer Guarantees Act 1993 provides guarantees for goods and services. The Fair Trading Act 1986 prohibits misleading conduct and false representations in trade. These laws protect consumers and ensure fair practices.
Dealing with debt collectors over disputed consumer bills
When a consumer disputes a bill in New Zealand, the Consumer Guarantees Act 1993 provides rights if goods or services are faulty. The Fair Trading Act 1986 protects against misleading or harassing debt collection practices. Consumers should formally communicate their dispute to ensure their rights are considered.
Disputing a declined insurance claim
When an insurance claim is declined in New Zealand, consumers have rights under the Consumer Guarantees Act 1993 for services to be rendered with reasonable care and skill, and under the Fair Trading Act 1986 against misleading conduct or unfair contract terms by insurers. Consumers can challenge decisions through internal and external dispute resolution processes.
Do you have to pay for shipping to return a faulty item?
In New Zealand, if an item is faulty, consumers have rights under the Consumer Guarantees Act 1993. For significant return costs, the supplier must collect the goods. For non-significant costs, while the Act doesn't explicitly state who pays return shipping, consumers can typically claim reasonable return expenses as a consequential loss resulting from the fault. Sellers cannot mislead consumers about these rights.
Do you need a receipt to make a CGA claim? (Alternative proofs of purchase)
In New Zealand, a receipt is not always mandatory for a Consumer Guarantees Act (CGA) claim. Consumers must provide 'proof of purchase' to show the item was bought from that supplier. This proof can include bank statements, credit card statements, layby agreements, or other verifiable records of the transaction, demonstrating the consumer's acquisition of the goods or services.
Does the CGA apply to goods bought for a business?
The Consumer Guarantees Act (CGA) generally applies to goods bought for personal use, but can also apply to goods bought by a business if they are not for resale, production, or repair of other goods. Businesses can sometimes contract out of the CGA. The Fair Trading Act (FTA), which prohibits misleading conduct, always applies to business transactions and cannot be contracted out of.
Does the CGA apply to private car sales on TradeMe?
The Consumer Guarantees Act (CGA) and Fair Trading Act (FTA) generally do not apply to private car sales on TradeMe unless the seller is considered to be 'in trade'. If a seller is not 'in trade', the buyer's rights are typically governed by common law principles, such as contract law.
Does the CGA apply to second-hand goods?
The Consumer Guarantees Act 1993 generally applies to second-hand goods bought from businesses in New Zealand, with the standard of 'acceptable quality' adjusted for the item's age and price. The Fair Trading Act 1986 prohibits misleading conduct by sellers of second-hand goods, regardless of their quality.
Does the CGA cover power surges and utility outages?
New Zealand consumer law provides protections for utility services. The Consumer Guarantees Act 1993 generally requires utility providers to exercise reasonable care and skill. If a power surge or outage results from a failure to meet this standard, consumers may be entitled to remedies, including compensation for resulting damage. The Fair Trading Act 1986 prohibits misleading conduct by providers.
Door-to-door sales (Uninvited direct sales) under the FTA
Door-to-door sales, or uninvited direct sales, are regulated by the Fair Trading Act 1986, which requires sellers to provide specific information and grants consumers a five-working-day cooling-off period to cancel. The Consumer Guarantees Act 1993 also ensures goods and services sold meet quality and fitness standards.
Dropshipping: Consumer rights when buying from local sites fulfilling overseas
When buying from an NZ-based dropshipper, consumers are generally protected by New Zealand's consumer laws. The NZ supplier is responsible for goods meeting guarantees under the Consumer Guarantees Act 1993, even if sourced from overseas. Representations about products and delivery must be accurate under the Fair Trading Act 1986, regardless of overseas fulfilment.
Event tickets: Refunds for cancelled or postponed concerts
In New Zealand, consumers generally have rights to refunds for cancelled or significantly postponed event tickets under the Consumer Guarantees Act 1993 if the service cannot be provided. The Fair Trading Act 1986 prohibits misleading conduct regarding ticket sales and refund policies. These legal protections apply even if ticket terms and conditions state otherwise.
Facebook Marketplace scams and consumer protection
In New Zealand, consumer protections under the Consumer Guarantees Act 1993 and Fair Trading Act 1986 typically apply to transactions where the seller is 'in trade'. These Acts may not cover private sales on platforms like Facebook Marketplace, meaning rights and remedies depend on whether the seller is acting as a business.
False representation: Lying about a product's origin
In New Zealand, businesses must not make false or misleading claims about a product's origin. The Fair Trading Act 1986 prohibits such representations, while the Consumer Guarantees Act 1993 ensures goods match their description and are of acceptable quality. Consumers have rights to remedies if product origin is misrepresented, impacting quality or description.
Faulty custom-made goods: Refund rights
In New Zealand, consumers have rights regarding faulty custom-made goods under the Consumer Guarantees Act 1993. If goods are not of acceptable quality or fit for purpose, consumers may be entitled to a repair, replacement, or refund, depending on the nature of the fault. The Fair Trading Act 1986 addresses misleading conduct by traders.
Returning Faulty Goods in New Zealand: What Retailers Must Do
In New Zealand, consumers have rights when goods are faulty or defective, primarily under the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA). The CGA provides guarantees regarding acceptable quality and fitness for purpose, outlining remedies such as repair, replacement, or refund depending on whether the fault is minor or substantial. The FTA addresses misleading conduct and false representations about goods.
Faulty software updates that break your phone: CGA rights
If a faulty software update renders a phone unusable, New Zealand consumer law may provide remedies. The Consumer Guarantees Act 1993 ensures goods are of acceptable quality, while the Fair Trading Act 1986 prohibits misleading conduct. Consumers may be entitled to repair, replacement, refund, or compensation for losses.
Fine print: How small can conditions legally be?
New Zealand law doesn't specify a minimum font size for 'fine print,' but conditions must be clear, legible, and not misleading. The Fair Trading Act 1986 prohibits misleading conduct and regulates unfair contract terms. The Consumer Guarantees Act 1993 ensures certain consumer rights cannot be removed, regardless of fine print.
Food and hygiene: Returning faulty groceries
In New Zealand, consumers have rights when groceries are faulty, such as not being of acceptable quality or fit for purpose. The Consumer Guarantees Act 1993 provides remedies like repair, replacement, or refund. The Fair Trading Act 1986 protects against misleading conduct by retailers. Consumers must understand these rights to address issues with defective food products.
Gift cards and vouchers: Expiry date rules in NZ
New Zealand law does not set a minimum expiry period for gift cards. However, businesses must clearly and prominently disclose any expiry dates and terms to avoid misleading consumers under the Fair Trading Act 1986. If expiry terms are unclear or misrepresented, consumers may have grounds for complaint.
Gifts and the CGA: Do you have rights if you didn't buy the item?
In New Zealand, recipients of gifts generally have consumer rights under the Consumer Guarantees Act 1993 for faulty items, as they are considered 'consumers' of the goods. The Fair Trading Act 1986 also protects against misleading conduct regarding gifted products. Proof of purchase, such as a gift receipt, is typically required to exercise these rights.
Gym memberships: Cancelling unfair contracts
In New Zealand, consumer rights regarding gym memberships are protected by the Consumer Guarantees Act 1993 and the Fair Trading Act 1986. These laws ensure services are provided with reasonable care and skill, are fit for purpose, and protect consumers from misleading conduct and unfair contract terms, offering avenues for resolution or cancellation.
Hidden fees in loans: What lenders must disclose
In New Zealand, lenders must disclose all fees associated with a loan under the Credit Contracts and Consumer Finance Act 2003. Misleading or deceptive conduct regarding fees is prohibited by the Fair Trading Act 1986. The Consumer Guarantees Act 1993 ensures loan services are provided with reasonable care and skill, including fee disclosure.
Hospitality complaints: Refusing to pay for a bad meal
In New Zealand, consumers have rights under the Consumer Guarantees Act and Fair Trading Act for hospitality services. For a 'bad meal,' remedies depend on whether the failure is minor or substantial. Consumers may seek a remedy, including cancellation of service or reduced payment, rather than outright refusal to pay without negotiation.
How long does a retailer have to repair a faulty item?
Under New Zealand's Consumer Guarantees Act 1993, retailers must repair faulty items within a "reasonable time." If the fault is minor, the retailer chooses the remedy. If the repair is not done in a reasonable time, or the fault is substantial, consumers can choose a replacement or refund instead. The Fair Trading Act 1986 prohibits misleading representations about repair times.
How the CGA makes extended warranties largely unnecessary
In New Zealand, the Consumer Guarantees Act 1993 (CGA) provides automatic, comprehensive protections for consumers regarding product quality and durability. These statutory guarantees often cover what extended warranties offer, making such additional warranties largely unnecessary for goods purchased for personal use. The Fair Trading Act 1986 further prohibits misleading claims about warranties.
How to report a business to the Commerce Commission
In New Zealand, consumers can report businesses to the Commerce Commission for breaches of consumer law. This includes issues under the Consumer Guarantees Act 1993, which sets standards for goods and services, and the Fair Trading Act 1986, which prohibits misleading conduct. The Commission enforces these laws but does not resolve individual disputes.
How to tell if an online seller is "in trade"
Determining if an online seller is 'in trade' is crucial for understanding consumer rights in New Zealand. If a seller is 'in trade', they are subject to protections under the Consumer Guarantees Act 1993 and Fair Trading Act 1986. Key indicators include the regularity of sales, profit motive, and the nature of items sold.
In-app purchases and unauthorized kids' spending: Can you get a refund?
Consumers in New Zealand may have rights regarding in-app purchases and unauthorised spending, particularly by children, under the Consumer Guarantees Act 1993 and the Fair Trading Act 1986. These laws address the quality of goods and services, and prevent misleading or deceptive conduct by traders, which can be relevant to seeking refunds for such transactions.
Inertia selling: What happens if you are sent goods you didn't order?
Inertia selling involves sending goods to someone who didn't order them, then demanding payment. In New Zealand, recipients are generally not liable to pay for unsolicited goods, nor are they required to return them. After a certain period, these goods typically become the recipient's property. Suppliers demanding payment for unsolicited goods commit an offence.
Insurance claims: Fair handling under consumer law
New Zealand consumer law requires insurers to handle claims fairly. The Consumer Guarantees Act 1993 ensures insurance services are provided with reasonable care and skill. The Fair Trading Act 1986 prohibits misleading conduct and unfair contract terms in insurance, ensuring transparency and honesty in dealings with policyholders regarding their claims.
Layby sales: Consumer rights and cancellation fees
In New Zealand, layby sales are governed primarily by the Fair Trading Act 1986. Consumers have a right to cancel a layby agreement, but may be subject to a reasonable cancellation charge. This charge must be specified in the agreement and cannot exceed the supplier's actual loss, excluding profit, or the amount paid by the consumer. The Consumer Guarantees Act 1993 ensures goods supplied via layby are of acceptable quality.
Minor vs. Serious faults: How it changes your refund rights
In New Zealand, consumer rights for faulty goods or services depend on whether the fault is minor or serious under the Consumer Guarantees Act 1993. For minor faults, the supplier chooses the remedy (repair, replacement, or refund). For serious faults, the consumer can choose to reject the goods and receive a refund or replacement, or claim compensation.
Misleading and deceptive conduct under the FTA
New Zealand's Fair Trading Act 1986 prohibits misleading or deceptive conduct by businesses 'in trade'. The Consumer Guarantees Act 1993 provides rights and remedies for consumers when goods or services fail to meet guarantees of quality or fitness. Both Acts protect consumers from unfair practices and provide avenues for redress against traders.
Misleading packaging: Less product than advertised
Misleading packaging in New Zealand, where products contain less than advertised, is prohibited. The Fair Trading Act 1986 bans misleading conduct and false representations about product quantity. The Consumer Guarantees Act 1993 ensures goods match their description and are of acceptable quality. Consumers have rights to remedies like refunds or replacements if these laws are breached.
Online auctions: TradeMe rights for "in-trade" vs. private sellers
In New Zealand, consumer rights in online auctions like TradeMe depend on whether the seller is "in trade" or a private seller. "In-trade" sellers are generally subject to the Consumer Guarantees Act 1993 and Fair Trading Act 1986, offering buyers significant protections. Private sellers typically are not, meaning buyers have fewer statutory rights.
Overbooked flights: Compensation rules in NZ
If an airline overbooks a flight in New Zealand, causing a passenger to be denied boarding or significantly delayed, it may breach consumer guarantees under the Consumer Guarantees Act 1993, and engage in misleading conduct under the Fair Trading Act 1986. Passengers may be entitled to remedies including damages for losses incurred.
Parallel imported goods: Does the CGA still apply?
In New Zealand, the Consumer Guarantees Act 1993 and the Fair Trading Act 1986 generally apply to parallel imported goods. The local supplier is responsible for meeting consumer guarantees, and the importer may be deemed the 'manufacturer' under the CGA. Suppliers must not engage in misleading conduct regarding these goods.
Phishing scams: Are banks liable to refund you?
In New Zealand, banks may be liable for refunds in phishing scams under the Consumer Guarantees Act 1993 if they fail to exercise reasonable care and skill in providing services. The Fair Trading Act 1986 could apply if a bank's representations about security were misleading. Liability depends on the specific circumstances and whether the bank breached its statutory obligations.
Pricing mistakes: Does a shop have to honour the wrong price tag?
In New Zealand, shops generally do not have to honour a wrong price tag if it is a genuine mistake discovered before the sale is completed. However, businesses must not engage in misleading conduct regarding prices under the Fair Trading Act 1986. The Consumer Guarantees Act 1993 primarily covers product quality after purchase, not pricing errors.
Pyramid selling vs. Multi-level marketing in NZ
Pyramid selling schemes are illegal in New Zealand due to their focus on recruitment payments over product sales. Multi-level marketing (MLM) is lawful if income is primarily from product sales, but all schemes must comply with the Fair Trading Act 1986 regarding truthful conduct and the Consumer Guarantees Act 1993 for product and service quality.
Resolving disputes with mechanics over car repairs
New Zealand consumer law, primarily the Consumer Guarantees Act 1993 and Fair Trading Act 1986, provides protections when disputes arise with mechanics over car repairs. Consumers have rights to services carried out with reasonable care and skill, and to accurate information about repairs, parts, and pricing. Remedies are available for failures to meet these legal guarantees and prohibitions.
Right to repair: Are manufacturers required to fix locked electronics?
In New Zealand, while there isn't a broad 'right to repair' law, manufacturers must ensure repair facilities and parts for goods are available for a reasonable period under the Consumer Guarantees Act 1993. The Fair Trading Act 1986 prohibits misleading conduct regarding repairability, meaning manufacturers cannot falsely represent repair services or parts availability for 'locked' electronics.
Scalping: Reselling tickets at inflated prices in NZ
In New Zealand, reselling event tickets for profit (scalping) is generally not illegal, except for specific events where legislation restricts resale prices. The Fair Trading Act 1986 prohibits misleading conduct by sellers acting 'in trade,' such as selling fake or misrepresented tickets. The Consumer Guarantees Act 1993 applies if a seller is 'in trade' and the ticket is not fit for purpose, but does not regulate resale prices.
Services under the CGA: Guarantee of reasonable care and skill
In New Zealand, the Consumer Guarantees Act 1993 requires services to be carried out with reasonable care and skill. If a service provider fails to meet this standard, consumers have rights to remedies, including repair, re-performance, or compensation. Suppliers cannot contract out of this guarantee for consumer transactions.
Services under the CGA: Guarantee of reasonable price
In New Zealand, if the price for a service is not agreed upon, consumers are legally obliged to pay no more than a reasonable price, as guaranteed by the Consumer Guarantees Act 1993. The Fair Trading Act 1986 prohibits businesses from making misleading representations about service prices.
Spare parts and repair facilities: What must manufacturers provide?
Under New Zealand law, manufacturers must ensure spare parts and repair facilities are available for a reasonable time after goods are supplied. This obligation, found in the Consumer Guarantees Act 1993, helps consumers maintain products. Manufacturers can notify consumers if parts or repairs will not be available or are time-limited. The Fair Trading Act 1986 also prohibits misleading representations about these matters.
Subscription traps: Auto-renewals and the Fair Trading Act
In New Zealand, auto-renewing subscriptions are subject to consumer protection laws. The Fair Trading Act 1986 addresses misleading conduct and potentially unfair contract terms related to auto-renewals and cancellations. The Consumer Guarantees Act 1993 ensures services provided meet certain standards. Businesses must be transparent about these terms to avoid 'subscription traps'.
Surcharges: Can businesses charge extra for paywave/credit cards?
In New Zealand, businesses can generally charge surcharges for payment methods like Paywave or credit cards. However, these surcharges must be clearly and prominently disclosed to the consumer before they commit to the transaction. The Fair Trading Act 1986 prohibits misleading conduct and false representations about pricing, ensuring transparency for consumers regarding any additional payment fees.
Telecommunications dispute resolution: Fighting bad internet providers
New Zealand consumer law provides protections for telecommunications services. The Consumer Guarantees Act ensures services are provided with reasonable care and skill, and the Fair Trading Act prohibits misleading conduct by providers. Consumers can use internal complaints processes and the Telecommunications Dispute Resolution scheme to address issues.
Telemarketing rules and consumer rights
In New Zealand, telemarketing activities are governed by consumer protection laws, primarily the Fair Trading Act 1986 and the Consumer Guarantees Act 1993. These Acts ensure that telemarketers do not engage in misleading or deceptive conduct, make unsubstantiated claims, or harass consumers. Consumers have rights to accurate information and guarantees for goods and services purchased, regardless of the sales method.
The 5-day cooling-off period for door-to-door sales
In New Zealand, consumers have a 5-working-day cooling-off period to cancel an 'uninvited direct sale' agreement, such as door-to-door sales. This right, provided by the Fair Trading Act 1986, requires sellers to inform buyers of their cancellation rights. The Consumer Guarantees Act 1993 ensures quality of goods/services, but does not establish the cooling-off period.
The Banking Ombudsman: How to resolve disputes with your bank
The Banking Ombudsman is an independent scheme helping resolve disputes between consumers and their banks in New Zealand. It considers consumer protections under laws like the Consumer Guarantees Act 1993 and the Fair Trading Act 1986, which prohibit misleading conduct and ensure services meet certain standards. Complaints should first go to the bank, then to the Ombudsman if unresolved.
The difference between the Commerce Commission and the Disputes Tribunal
In New Zealand, the Commerce Commission enforces fair trading laws for general market conduct, while the Disputes Tribunal resolves individual consumer disputes. The Commission addresses breaches of the Fair Trading Act, such as misleading conduct, through enforcement action. The Tribunal, however, applies the Consumer Guarantees Act to address issues like faulty goods or services, facilitating remedies for consumers.
The guarantee of "acceptable quality" explained
In New Zealand, the Consumer Guarantees Act 1993 ensures goods sold to consumers are of "acceptable quality." This means they must be fit for purpose, safe, durable, and free from minor defects, taking into account price and other factors. If goods fail this standard, consumers have rights to remedies like repair, replacement, or refund.
The guarantee that goods match their description or sample
In New Zealand, consumers have a legal guarantee that goods purchased will match the description provided or the sample/demonstration model shown. The Consumer Guarantees Act 1993 outlines rights for remedies if goods do not correspond. The Fair Trading Act 1986 prohibits misleading representations about goods, ensuring accuracy in trade practices.
The guarantee that goods must be "fit for purpose"
In New Zealand, goods purchased from a supplier must be 'fit for purpose' under the Consumer Guarantees Act 1993. This means they must be suitable for their common uses or any specific purpose the consumer made known. If goods fail this guarantee, consumers may have rights to repair, replacement, or refund, depending on the nature of the failure.
The Motor Vehicle Disputes Tribunal: How it works
The Motor Vehicle Disputes Tribunal (MVDT) resolves disputes between consumers and motor vehicle traders in New Zealand. It primarily applies rules from the Consumer Guarantees Act 1993, ensuring vehicles are of acceptable quality, and the Fair Trading Act 1986, prohibiting misleading conduct. The MVDT process includes application, mediation, and a hearing, leading to legally binding orders.
Timeframes for completing a service under the CGA
In New Zealand, if a service timeframe isn't agreed upon, it must be completed within a reasonable time under the Consumer Guarantees Act 1993. Failure to do so allows consumers to seek remedies. The Fair Trading Act 1986 also prohibits misleading representations about service completion times.
Unfair contract terms: What makes a standard form contract illegal?
In New Zealand, standard form consumer contracts can have terms declared unfair and therefore unenforceable under the Fair Trading Act 1986. This applies if a term causes a significant imbalance in rights and obligations, is not reasonably necessary, and causes detriment. The Consumer Guarantees Act 1993 also prevents businesses from contracting out of certain consumer rights.
Unsubstantiated claims: Saying a product is "the best" without proof
In New Zealand, traders must not make unsubstantiated claims, meaning they must have reasonable grounds for any representations about products or services. Claims like "the best" without proof can breach the Fair Trading Act 1986, which prohibits misleading conduct and unsubstantiated representations. The Consumer Guarantees Act 1993 provides remedies if goods or services fail to meet implied quality standards.
Using the Insurance & Financial Services Ombudsman (IFSO)
The Insurance & Financial Services Ombudsman (IFSO) Scheme provides an independent service to resolve disputes between consumers and financial service providers in New Zealand. It considers consumer rights and obligations under laws like the Consumer Guarantees Act 1993, which ensures services are performed with reasonable care, and the Fair Trading Act 1986, which prohibits misleading conduct.
Utilities disputes: Fighting unfair power bills
In New Zealand, consumers disputing power bills are protected by the Consumer Guarantees Act 1993, which ensures services are provided with reasonable care and at a reasonable price, and the Fair Trading Act 1986, which prohibits misleading conduct and false representations. Disputes can be resolved initially with the retailer and, if unresolved, escalated to the Utilities Disputes Scheme.
"Was/Now" pricing: Rules around discount claims
In New Zealand, "Was/Now" pricing is governed by the Fair Trading Act 1986, which prohibits misleading or deceptive conduct regarding prices. Businesses must have reasonable grounds for any price comparisons or discount claims. The Consumer Guarantees Act 1993 provides general consumer rights for goods and services purchased, but the Fair Trading Act specifically addresses pricing representations.
Wear and tear vs. Inherent faults
New Zealand consumer law differentiates between inherent faults and normal wear and tear. The Consumer Guarantees Act 1993 ensures goods are of acceptable quality, covering inherent faults, but not deterioration from ordinary use or misuse. The Fair Trading Act 1986 prevents misleading representations about products. Consumers have rights to remedies for goods failing these guarantees.
Wedding vendors failing to deliver: Consumer rights
In New Zealand, consumers engaging wedding vendors are protected by the Consumer Guarantees Act 1993, ensuring services are provided with reasonable care and skill, and the Fair Trading Act 1986, which prohibits misleading conduct. If a vendor fails to deliver as agreed, consumers may have rights to remedies such as repair, replacement, or refund, depending on the nature of the failure.
What are "contracting out" clauses and when are they legal?
Contracting out clauses are contract terms attempting to override statutory rights. Under the Consumer Guarantees Act 1993, contracting out is generally prohibited, except for certain commercial transactions. Similarly, the Fair Trading Act 1986 generally prohibits contracting out of key protections against misleading conduct, with specific exceptions for agreements between parties acting in trade.
What happens if a retailer cannot fix a fault after multiple tries?
If a retailer in New Zealand cannot fix a product fault after multiple attempts, or within a reasonable time, consumers generally gain stronger rights under the Consumer Guarantees Act 1993. This may allow them to reject the goods for a refund or replacement, or seek compensation, rather than just accepting further repairs. Retailers must also comply with the Fair Trading Act 1986 by not making misleading claims.
What happens if you return an item bought with Afterpay?
When returning an item purchased with Afterpay in New Zealand, consumer rights are primarily governed by the Consumer Guarantees Act 1993 and Fair Trading Act 1986. Afterpay is a payment method, and any issues with the item itself are resolved directly with the retailer. If a refund is due, the retailer processes it, and Afterpay adjusts the payment schedule accordingly.
What happens when a tradesperson abandons a job?
When a tradesperson abandons a job in New Zealand, consumer rights are protected under the Consumer Guarantees Act 1993 and Fair Trading Act 1986. These laws ensure services are completed within a reasonable time and prohibit misleading conduct. Consumers may be entitled to remedies like cancellation of the service or compensation for losses incurred.
What is a manufacturer’s warranty and how does it overlap with the CGA?
A manufacturer’s warranty is a voluntary promise about a product, separate from the statutory rights consumers have under the Consumer Guarantees Act 1993 (CGA). The CGA provides fundamental guarantees that cannot be excluded, such as acceptable quality and fitness for purpose, and outlines remedies. The Fair Trading Act 1986 prohibits misleading claims about warranties.
What is the Consumer Guarantees Act (CGA) 1993?
New Zealand's consumer law provides protections through the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA). The CGA ensures goods and services meet certain quality standards, while the FTA prohibits misleading and deceptive conduct in trade. These laws establish consumer rights and supplier obligations, with specific remedies available for breaches.
What is the Fair Trading Act (FTA) 1986?
The Fair Trading Act 1986 prohibits misleading and deceptive conduct in trade, ensuring businesses are honest in their representations. The Consumer Guarantees Act 1993 provides guarantees for goods and services purchased by consumers, ensuring they are of acceptable quality and fit for purpose. Both acts protect consumer rights in New Zealand.
What to do if a store goes bust before you use your gift card
If a store goes out of business before a gift card is used, the cardholder typically becomes an unsecured creditor in the insolvency process. New Zealand's consumer laws, such as the Consumer Guarantees Act 1993, generally do not provide specific protection for the unredeemed value of gift cards in these situations. The Fair Trading Act 1986 may offer recourse if the gift card was sold through misleading or deceptive conduct.
Who gets to choose between a repair, replacement, or refund?
In New Zealand, consumer rights to a repair, replacement, or refund depend on whether a product or service failure is minor or serious. For minor failures, the supplier usually chooses the remedy. For serious failures, the consumer typically has the choice. These rights are protected by the Consumer Guarantees Act 1993 and the Fair Trading Act 1986.
Who is considered a "consumer" under the CGA?
In New Zealand, a "consumer" under the Consumer Guarantees Act 1993 is generally someone who buys goods or services for personal, domestic, or household use, not for resale or commercial production. The Act provides guarantees on quality and performance, while the Fair Trading Act 1986 protects against misleading conduct in trade for all customers.
Who is responsible under the CGA: The retailer or the manufacturer?
Under New Zealand consumer law, the retailer (supplier) is generally the primary party responsible for addressing issues with goods under the Consumer Guarantees Act 1993. Manufacturers can also be responsible for breaches of their express guarantees or under certain conditions. The Fair Trading Act 1986 prohibits misleading conduct by anyone 'in trade', including both retailers and manufacturers.