Skip to main content

Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

SimplifiedLaw.co.nz
consumer

Courier delays and lost parcels: Who is liable?

Key Takeaway

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.

Understanding Your Rights for Delayed or Lost Parcels

When a parcel is delayed or lost during delivery in New Zealand, various legal protections exist for consumers. These protections primarily stem from the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA), which outline the rights and obligations of both consumers and businesses involved in the supply of goods and services.

Who is a "Consumer" under New Zealand Law?

A consumer is generally defined as a person who acquires goods or services of a kind ordinarily acquired for personal, domestic, or household use or consumption, and not for the purpose of resupplying them in trade, consuming them in the course of a manufacturing or production process, or repairing or treating other goods or fixtures on land in trade [Source: Consumer Guarantees Act 1993, s 2]. If a business buys goods or services for its own use, and not for resale, it might also be considered a consumer for some purposes.

The Consumer Guarantees Act 1993 (CGA)

The CGA provides a range of guarantees that apply to goods and services supplied to consumers. These guarantees cannot be contracted out of by a supplier if the goods or services are supplied to a consumer [Source: Consumer Guarantees Act 1993, s 43(1)].

Services: The Courier's Obligations

When a courier company provides a delivery service, it must meet certain guarantees under the CGA. A service includes any rights, benefits, privileges, or facilities that are or are to be provided, granted, or conferred in trade [Source: Consumer Guarantees Act 1993, s 2].

  • Acceptable Care and Skill: The courier service must be carried out with reasonable care and skill [Source: Consumer Guarantees Act 1993, s 28]. This means the courier must take reasonable steps to ensure the parcel is delivered safely and without damage.
  • Reasonable Time for Completion: If no specific time for completion of the service was agreed upon, the service must be completed within a reasonable time [Source: Consumer Guarantees Act 1993, s 29]. What constitutes a "reasonable time" will depend on the circumstances, such as the nature of the service and standard industry practices.

Remedies for Breaches of Service Guarantees

If a courier service fails to meet these guarantees, the remedies available to the consumer depend on whether the failure is minor or substantial.

  • Minor Failure: If the failure can be remedied, the courier company (the supplier) must remedy it within a reasonable time. This could involve re-performing the service or compensating the consumer for the reduction in value of the service. If the supplier fails to remedy the failure, the consumer may have the service remedied by someone else and recover the reasonable costs from the supplier, or cancel the contract for the service [Source: Consumer Guarantees Act 1993, s 31].
  • Substantial Failure: A failure is substantial if, among other things, the service is not fit for a particular purpose made known to the supplier, or departs significantly from its specifications, or is of such a nature that no reasonable consumer would have acquired the service if they had known of the extent and character of the failure [Source: Consumer Guarantees Act 1993, s 32]. In the case of a substantial failure, the consumer can cancel the contract for the service or obtain damages from the supplier for any loss or damage resulting from the failure [Source: Consumer Guarantees Act 1993, s 32]. This could include the value of a lost parcel.

Goods: The Seller's Obligations (When the Seller Arranges Delivery)

When a consumer purchases goods from a seller and the seller arranges for the delivery of those goods by a courier, the consumer's primary relationship regarding the goods is with the seller. The supplier of goods is responsible for ensuring the goods meet certain guarantees.

  • Acceptable Quality of Goods: Goods supplied to a consumer must be of acceptable quality [Source: Consumer Guarantees Act 1993, s 6(1)]. This means they must be fit for all the purposes for which goods of that type are commonly supplied, acceptable in appearance and finish, free from minor defects, safe, and durable [Source: Consumer Guarantees Act 1993, s 7(1)]. If goods are lost in transit, they are not of acceptable quality as they have not been successfully supplied.

  • What Happens if Goods Don't Arrive or Are Damaged?: If goods purchased from a seller do not arrive, or arrive damaged, it is generally considered a breach of the acceptable quality guarantee by the seller. The seller is usually responsible for ensuring the goods reach the consumer in acceptable condition. The consumer should initially contact the seller to resolve the issue. The seller may then pursue a claim against the courier service for their failure to deliver the service with due care and skill.

The Fair Trading Act 1986 (FTA)

The FTA protects consumers from misleading or deceptive conduct and false representations by businesses. It applies to conduct "in trade" meaning any trade, business, industry, profession, occupation, or activity relating to the supply of goods or services [Source: Fair Trading Act 1986, s 2(1)].

  • Misleading or Deceptive Conduct: No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive [Source: Fair Trading Act 1986, s 9]. This could apply if a courier company or a seller makes general representations about their delivery service that are untrue.

  • False or Misleading Representations: The FTA specifically prohibits false or misleading representations about goods or services. This includes misrepresenting the standard, quality, value, grade, composition, style, or model of goods or services, or their history, or the existence, exclusion, or effect of any condition, warranty, guarantee, right, or remedy [Source: Fair Trading Act 1986, s 13]. For example, if a courier service falsely claims a parcel was delivered, or a seller provides inaccurate tracking information, this could be a false or misleading representation.

  • Unsubstantiated Representations: A person must not, in trade, make a representation about goods or services without having reasonable grounds for making the representation [Source: Fair Trading Act 1986, s 12A]. This means businesses cannot make claims about delivery times or service reliability without being able to back them up with evidence.

Remedies under the FTA

If a business breaches the FTA, a consumer may apply to the courts for various orders, including an order requiring the payment of damages for any loss or damage suffered because of the misleading conduct or false representation [Source: Fair Trading Act 1986, s 43(2)(d)].

Contractual Terms and Contracting Out

While businesses might have their own terms and conditions for courier services, these cannot override the fundamental guarantees provided by the Consumer Guarantees Act 1993 when dealing with a consumer. Any term that attempts to exclude or limit these guarantees in a consumer transaction is generally void [Source: Consumer Guarantees Act 1993, s 43(1)]. However, for transactions between businesses, it is possible to contract out of the CGA [Source: Consumer Guarantees Act 1993, s 43(2)].

Steps to Take if Your Parcel is Delayed or Lost

If a parcel you are expecting, or have sent, is delayed or lost:

  1. Contact the Seller/Sender: If you bought goods and the seller arranged delivery, contact the seller first. They are generally responsible for ensuring the goods reach you.
  2. Contact the Courier: If you directly engaged the courier service, or if the seller directs you to, contact the courier company. Provide them with all relevant details, including tracking numbers and descriptions of the parcel contents.
  3. Keep Records: Document all communications, including dates, times, names of people spoken to, and summaries of discussions. Keep copies of all receipts, tracking information, and any claims made.
  4. Lodge a Formal Complaint: If initial attempts to resolve the issue are unsuccessful, lodge a formal complaint with the relevant company.

When to Seek Independent Legal Advice

Individuals experiencing issues with delayed or lost parcels are encouraged to seek independent legal advice if they are unable to resolve the matter directly with the business, or if the situation involves complex legal questions. This ensures that their specific circumstances and rights are fully understood. For free legal advice, individuals can contact Community Law Centres or the Citizens Advice Bureau. For consumer-specific issues, Consumer Protection also provides information and guidance.

Key Resources