Repairing Faulty Items in New Zealand: Understanding Retailer Obligations
When a consumer purchases goods in New Zealand, they are protected by the Consumer Guarantees Act 1993 (CGA). This Act sets out a range of guarantees that goods must meet, and provides remedies when they do not. A key aspect of these protections relates to how long a retailer has to repair a faulty item.
Consumer Guarantees for Goods
Under the CGA, goods purchased from a supplier (retailer is a common term for a supplier in this context) must meet several guarantees. One of the most significant is the guarantee 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 that type are commonly supplied [Source: Consumer Guarantees Act 1993, s 7(a)].
- Be acceptable in appearance and finish [Source: Consumer Guarantees Act 1993, s 7(b)].
- Be free from minor defects [Source: Consumer Guarantees Act 1993, s 7(c)].
- Be safe [Source: Consumer Guarantees Act 1993, s 7(d)].
- Be durable [Source: Consumer Guarantees Act 1993, s 7(e)].
If goods fail to meet any of these guarantees, they are considered faulty, and the consumer has rights to a remedy (a solution to a problem) [Source: Consumer Guarantees Act 1993, s 18].
Retailer's Obligation to Remedy a Minor Fault
If a fault with goods can be remedied and is not of a substantial character (meaning it can be fixed and doesn't make the goods wholly unfit for purpose, unsafe, or significantly depart from its description), the consumer cannot initially choose the remedy [Source: Consumer Guarantees Act 1993, s 18(2)]. Instead, the supplier (retailer) decides how to resolve the issue. They can choose to:
- Repair the goods [Source: Consumer Guarantees Act 1993, s 18(2)(a)].
- Replace the goods with goods of identical type [Source: Consumer Guarantees Act 1993, s 18(2)(b)].
- Refund any money paid for the goods [Source: Consumer Guarantees Act 1993, s 18(2)(c)].
When a retailer chooses to repair the goods, they must do so within a reasonable time [Source: Consumer Guarantees Act 1993, s 19(2)].
What Constitutes “Reasonable Time” for Repair?
The term “reasonable time” is not explicitly defined in the Consumer Guarantees Act 1993 as a specific number of days or weeks. Instead, it is determined by considering all relevant circumstances of the case [Source: Consumer Guarantees Act 1993, s 2(1) defines "reasonable time" in relation to performance, implying context-specific determination]. Factors that might influence what is considered a reasonable time include:
- The nature of the goods (e.g., a simple repair versus a complex electronic device).
- The severity of the fault.
- The availability of necessary parts or specialised technicians.
- The location of the repair facility.
- Any representations made by the retailer about repair times.
Consumer Rights When Repair is Not Completed in Reasonable Time
If the supplier (retailer) fails to repair the goods within a reasonable time, the consumer then gains the right to choose their own remedy. In such a situation, the consumer may:
- Have the goods repaired by someone else and recover all reasonable costs from the supplier [Source: Consumer Guarantees Act 1993, s 20(1)(a)].
- Reject the goods [Source: Consumer Guarantees Act 1993, s 20(1)(b)].
If the consumer chooses to reject the goods, they are indicating to the supplier that they no longer wish to own them due to the fault. Upon rejection, the consumer can choose either a replacement of identical type or a full refund of any money paid for the goods [Source: Consumer Guarantees Act 1993, s 21(2)(a), s 21(2)(b)].
Substantial Failures and Immediate Consumer Choice
If the failure of the goods is of a substantial character (meaning it cannot be remedied, is unsafe, or makes the goods wholly unfit for their purpose, etc.), the consumer does not have to wait for the retailer to attempt a repair. In these cases, the consumer can immediately choose to:
- Reject the goods [Source: Consumer Guarantees Act 1993, s 21(1)(a)].
- Claim compensation for any reduction in the value of the goods below the price paid [Source: Consumer Guarantees Act 1993, s 21(1)(b)].
Upon rejection, the consumer can choose between a replacement or a full refund [Source: Consumer Guarantees Act 1993, s 21(2)(a), s 21(2)(b)].
Relevance of the Fair Trading Act 1986
The Fair Trading Act 1986 (FTA) primarily prohibits misleading and deceptive conduct in trade [Source: Fair Trading Act 1986, s 9]. While it doesn't directly specify repair timelines for faulty items, it is relevant if a retailer makes false or misleading representations about repair services or the goods themselves. For example, if a retailer falsely claims a repair will take a week when they know it will take a month, this could be a breach of the FTA [Source: Fair Trading Act 1986, s 13(a) prohibits false or misleading representations concerning the nature, characteristics, suitability for a purpose, or quantity of services].
When to Seek Independent Legal Advice
Individuals facing disputes over faulty goods, particularly where a retailer refuses to honour consumer guarantees or disputes what constitutes a "reasonable time" for repair, may benefit from seeking independent legal advice. Information and assistance can be obtained from official bodies like the Commerce Commission or by contacting Community Law Centres for free legal guidance.
Key Resources
- Consumer Guarantees Act 1993: https://www.legislation.govt.nz/act/public/1993/0091/latest/whole.html
- Fair Trading Act 1986: https://www.legislation.govt.nz/act/public/1986/0121/latest/whole.html
- Consumer Protection (Commerce Commission): https://www.comcom.govt.nz/consumers/your-rights-when-buying-products-and-services/consumer-guarantees-act-and-fair-trading-act
- Citizens Advice Bureau - Consumer Guarantees Act: https://www.cab.org.nz/article/KB00000305
- Community Law Centres Aotearoa: https://communitylaw.org.nz/