New Zealand consumer law provides important protections for individuals purchasing goods, including groceries. When groceries are faulty, consumers have specific rights and remedies primarily under the Consumer Guarantees Act 1993 (CGA) and, in cases of misleading conduct, the Fair Trading Act 1986 (FTA).
Understanding "Faulty Groceries"
Under the Consumer Guarantees Act 1993, goods supplied to a consumer must comply with certain guarantees. A consumer is defined as a person who acquires goods or services of a kind ordinarily acquired for personal, domestic, or household use or consumption [Source: Consumer Guarantees Act 1993, s 2(1)]. Groceries are generally considered goods for personal consumption.
Groceries may be considered "faulty" if they do not meet these guarantees:
- Acceptable Quality: Goods must be of acceptable quality, which 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 6(1)]. For groceries, this primarily relates to freshness, absence of spoilage, and being safe to consume.
- Fitness for a Particular Purpose: If a consumer makes known to the supplier a particular purpose for which the goods are being acquired, the goods must be reasonably fit for that purpose [Source: Consumer Guarantees Act 1993, s 7(1)]. For instance, if you state you need specific ingredients for a recipe, and they are not suitable, this guarantee may apply.
- Match Description: Goods must correspond with any description given by the supplier [Source: Consumer Guarantees Act 1993, s 8(1)]. This means if a package describes its contents in a certain way, the actual product must match that description.
Your Rights Under the Consumer Guarantees Act 1993
When groceries fail to comply with one of the guarantees, the consumer has rights to a remedy from the supplier (the retailer) [Source: Consumer Guarantees Act 1993, s 18(1)].
Minor Failure
A minor failure is a failure that can be remedied to make the goods comply with the guarantee within a reasonable time, or a failure that does not reduce the value of the goods below an acceptable level, or does not prevent them from being fit for their ordinary purpose [Source: Consumer Guarantees Act 1993, s 21].
If the failure is minor, the consumer cannot reject the goods immediately. Instead, the supplier may choose to [Source: Consumer Guarantees Act 1993, s 23(1)]:
- Remedy the failure (e.g., offer a fresh replacement).
- Replace the goods with identical goods.
- Refund the consumer for the goods.
If the supplier refuses to remedy the failure, or does not do so within a reasonable time, the consumer may either obtain a remedy elsewhere and recover the reasonable costs from the supplier, or reject the goods and claim a refund or replacement [Source: Consumer Guarantees Act 1993, s 23(2)].
Major Failure
A major failure is a failure where the goods [Source: Consumer Guarantees Act 1993, s 21]:
- Would not have been acquired by a reasonable consumer fully aware of the nature and extent of the failure.
- Depart significantly from their description.
- Are substantially unfit for a common purpose and cannot easily be made fit within a reasonable time.
- Are not fit for a particular purpose made known to the supplier and cannot easily be made fit within a reasonable time.
- Are not of acceptable quality because they are unsafe.
In the case of a major failure, the consumer has the right to choose their remedy [Source: Consumer Guarantees Act 1993, s 23(2)(a)]:
- Reject the goods and obtain a refund.
- Reject the goods and obtain a replacement of the same type and value.
- Claim compensation for any reduction in value of the goods below the price paid.
When rejecting goods, the consumer must notify the supplier and return the goods, or make them available for collection [Source: Consumer Guarantees Act 1993, s 20(1), s 20(2)]. This must be done within a reasonable time after the consumer becomes aware of the fault [Source: Consumer Guarantees Act 1993, s 20(3)].
Retailer's Obligations
Suppliers have an obligation to provide a remedy under the CGA when goods fail to meet a guarantee [Source: Consumer Guarantees Act 1993, s 18]. If a consumer rejects faulty groceries, the supplier is responsible for any reasonable costs of returning the goods to them [Source: Consumer Guarantees Act 1993, s 23(2)(c)]. This means the consumer should not have to pay for postage or transport if they are returning an item due to a fault covered by the CGA.
The Fair Trading Act 1986 and Misleading Conduct
The Fair Trading Act 1986 (FTA) prohibits misleading and deceptive conduct in trade. While the CGA deals with the quality of goods, the FTA addresses how goods are advertised and sold. If faulty groceries were sold under false pretences or misleading information, the FTA may also apply.
Key provisions include:
- Misleading or Deceptive Conduct: No person in trade shall 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 packaging or advertising falsely represents the quality or characteristics of groceries.
- False Representations: The FTA prohibits making false or misleading representations about goods, including their quality, grade, standard, origin, or history [Source: Fair Trading Act 1986, s 13(a), s 13(b), s 13(d)]. For example, falsely labelling organic produce or a specific origin.
- Unsubstantiated Representations: A person in trade must not make an unsubstantiated representation. This means they cannot make a claim about a good or service without reasonable grounds for making the representation [Source: Fair Trading Act 1986, s 12A(1), s 12A(2)].
If a breach of the FTA occurs, various remedies are available, including injunctions, orders to disclose information, and orders to pay compensation to affected persons [Source: Fair Trading Act 1986, s 43].
Exclusions and Limitations
The Consumer Guarantees Act 1993 generally does not apply if goods are acquired for the purpose of resupplying them in trade, or for using them up or transforming them in a process of trade or manufacture [Source: Consumer Guarantees Act 1993, s 2(1)]. However, there are limited exceptions for businesses with specific thresholds [Source: Consumer Guarantees Act 1993, s 2(2)]. Furthermore, the CGA does not cover faults caused by a consumer's own actions, such as incorrect storage or misuse of the product [Source: Consumer Guarantees Act 1993, s 26(b)].
When to Seek Independent Legal Advice
If a consumer believes their rights have been breached under the Consumer Guarantees Act 1993 or the Fair Trading Act 1986, and they are unable to resolve the issue directly with the retailer, it is advisable to seek independent legal advice. Information can also be obtained from Consumer Protection New Zealand, the Disputes Tribunal, or Community Law Centres for free assistance. Community Law Centres provide free legal help to those in need nationwide.