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

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consumer

Do you have to pay for shipping to return a faulty item?

Key Takeaway

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.

Paying for Shipping to Return a Faulty Item in New Zealand

When a product purchased in New Zealand is faulty, consumers are protected by specific laws that outline their rights and the obligations of suppliers (businesses that sell goods or services). The key legislation governing these situations is the Consumer Guarantees Act 1993 and the Fair Trading Act 1986.

Consumer Guarantees Act 1993: Faulty Goods and Return Costs

The Consumer Guarantees Act 1993 (CGA) provides a set of automatic guarantees for goods and services purchased by consumers. A consumer is generally defined as an individual who acquires goods or services for personal, domestic, or household use, and not for resupply or use in a manufacturing or repair process [Source: Consumer Guarantees Act 1993, s 2].

Guarantee as to Acceptable Quality

One of the most important guarantees is that goods must be of 'acceptable quality' [Source: Consumer Guarantees Act 1993, s 6]. This means the goods must be:

  • Fit for all the purposes for which goods of the type are commonly supplied [Source: Consumer Guarantees Act 1993, s 7(a)]
  • Acceptable in appearance and finish [Source: Consumer Guarantees Act 1993, s 7(b)]
  • Free from minor defects [Source: Consumer Guarantees Act 1993, s 7(c)]
  • Safe [Source: Consumer Guarantees Act 1993, s 7(d)]
  • Durable [Source: Consumer Guarantees Act 1993, s 7(e)]

If an item is 'faulty,' it generally means it has failed to comply with one or more of these guarantees.

Remedies for Faulty Goods

If goods fail to comply with a guarantee, a consumer has a right of redress against the supplier [Source: Consumer Guarantees Act 1993, s 18]. The available remedies depend on whether the failure is 'minor' or 'major' [Source: Consumer Guarantees Act 1993, ss 19, 20].

  • Minor failure: The supplier may choose to repair the goods, replace them, or provide a refund [Source: Consumer Guarantees Act 1993, s 19].
  • Major failure: The consumer can choose to reject the goods and obtain a refund or a replacement of identical type, or seek damages for any reduction in value [Source: Consumer Guarantees Act 1993, s 20].

Who Pays for Return Shipping of Faulty Items?

The Consumer Guarantees Act 1993 addresses the return of rejected goods:

  1. Significant Cost of Return: If goods cannot be returned to the supplier without significant cost to the consumer, the consumer may require the supplier to collect them [Source: Consumer Guarantees Act 1993, s 23(2)(b)]. In such cases, the supplier is responsible for the collection costs.
  2. Non-Significant Cost of Return: Where the cost of returning the goods is not significant, the consumer may return the goods to the supplier [Source: Consumer Guarantees Act 1993, s 23(2)]. While the Act does not explicitly state in Section 23 that the supplier must reimburse these non-significant return shipping costs, the consumer can generally seek 'consequential loss' from the supplier for any loss or damage resulting from the failure of the goods [Source: Consumer Guarantees Act 1993, s 32]. Reasonable costs incurred by the consumer to return a faulty item are typically considered a consequential loss resulting from the goods' failure to meet guarantees and are recoverable from the supplier.

Therefore, in most cases where a product is faulty and covered by the CGA, the supplier is ultimately responsible for the costs associated with returning the goods to them for repair, replacement, or refund.

Fair Trading Act 1986: Misleading Conduct

The Fair Trading Act 1986 (FTA) prohibits misleading and deceptive conduct by businesses and ensures consumers are not misled about their rights [Source: Fair Trading Act 1986, s 9].

Misleading Representations about Consumer Rights

It is illegal for a supplier to make false or misleading representations about the existence, exclusion, or effect of any condition, warranty, guarantee, right, or remedy [Source: Fair Trading Act 1986, s 13(g)]. This means a supplier cannot falsely claim that a consumer must pay for return shipping for a faulty item if the law, particularly the CGA, indicates otherwise (e.g., if the cost is significant, or if the cost is a consequential loss).

If a supplier misleads a consumer about their rights regarding faulty goods or return shipping costs, they may be in breach of the Fair Trading Act 1986.

When to Seek Independent Legal Advice

When facing issues with faulty items or disputed return shipping costs, individuals may seek independent legal advice. Information regarding consumer rights and dispute resolution can be obtained from official government bodies such as the Commerce Commission or Ministry of Business, Innovation and Employment (MBIE). Free legal advice may also be available through Community Law Centres across New Zealand.

Key Resources