Parallel Imported Goods: Consumer Rights in New Zealand
Parallel imported goods are products that have been legitimately manufactured and branded overseas, but are imported into New Zealand by a party other than the manufacturer's authorised local distributor or agent. These are not counterfeit goods; they are authentic products sold outside the official distribution channels.
In New Zealand, consumers generally have rights and protections under both the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA) when purchasing parallel imported goods.
The Consumer Guarantees Act 1993 and Parallel Imports
The Consumer Guarantees Act 1993 (CGA) is legislation that provides consumers with guarantees for goods and services purchased for personal, domestic, or household use or consumption [Source: Consumer Guarantees Act 1993, s 2(1)].
Supplier's Obligations
When a consumer purchases parallel imported goods from a supplier (a person who supplies goods or services to a consumer in trade [Source: Consumer Guarantees Act 1993, s 2(1)]) in New Zealand, the CGA guarantees generally apply. The local supplier is responsible for ensuring the goods meet these guarantees, which include:
- Acceptable quality: Goods 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].
- Fitness for particular purpose: Goods must be reasonably fit for any particular purpose that the consumer makes known to the supplier [Source: Consumer Guarantees Act 1993, s 7].
- Compliance with description: Goods must correspond with any description by which they are supplied [Source: Consumer Guarantees Act 1993, s 8].
Who is the "Manufacturer" under the CGA?
A significant aspect for parallel imports under the CGA concerns who is considered the "manufacturer." The CGA defines manufacturer broadly. It includes not only the person who produces or assembles the goods, but also a person who holds themselves out as the manufacturer or applies their brand to the goods [Source: Consumer Guarantees Act 1993, s 2(1)].
Crucially for parallel imports, if goods are manufactured outside New Zealand and the actual manufacturer does not have a place of business in New Zealand, then the importer of those goods into New Zealand is considered the "manufacturer" under the CGA [Source: Consumer Guarantees Act 1993, s 2(1)]. This means that the importer may have responsibilities and liabilities as a manufacturer, such as ensuring the availability of repair facilities and parts for a reasonable period after supply [Source: Consumer Guarantees Act 1993, s 12].
Consumer Remedies
If parallel imported goods fail to comply with a guarantee under the CGA, a consumer has rights of redress against the supplier. The nature of the remedy depends on whether the failure is minor or substantial. Remedies can include repair, replacement, refund, or compensation for any reduction in value [Source: Consumer Guarantees Act 1993, s 18, s 23]. If the failure is substantial, the consumer may reject the goods or claim compensation [Source: Consumer Guarantees Act 1993, s 21, s 23].
The Fair Trading Act 1986 and Parallel Imports
The Fair Trading Act 1986 (FTA) is legislation that prohibits misleading and deceptive conduct, false representations, and unfair practices in trade [Source: Fair Trading Act 1986, s 9]. This Act applies to parallel imports just as it does to other goods sold in New Zealand.
Misleading or Deceptive Conduct
Suppliers of parallel imported goods must not engage in misleading or deceptive conduct (actions or statements that lead or are likely to lead a consumer into error) or conduct that is likely to mislead or deceive [Source: Fair Trading Act 1986, s 9]. This means that a supplier should not, for example, imply that parallel imported goods are covered by a manufacturer's warranty that is not valid in New Zealand, or suggest that they are an authorised reseller if they are not.
False or Misleading Representations
Suppliers must also not make false or misleading representations about goods. This includes representations regarding [Source: Fair Trading Act 1986, s 13]:
- The standard, quality, grade, composition, style, or model of goods.
- The history or previous use of goods.
- The sponsorship, approval, performance characteristics, accessories, uses, or benefits of goods.
- The price of goods.
- Any endorsement or affiliation.
- The country of origin of the goods.
- The existence, exclusion, or effect of any condition, warranty, guarantee, right, or remedy.
For parallel imports, this means that suppliers must be careful not to make representations that are unsubstantiated or untrue. For example, if a supplier states that a product has a particular feature or performance characteristic, they must be able to substantiate that claim [Source: Fair Trading Act 1986, s 12A]. Likewise, any claims about warranties or after-sales service must be accurate. If an original manufacturer's warranty is not honoured in New Zealand for parallel imports, the supplier must not suggest otherwise.
Important Considerations for Consumers
Consumers considering purchasing parallel imported goods should be aware that while their rights under the CGA and FTA generally apply, the availability of specific manufacturer's warranties or local support services (such as firmware updates or specific parts) may differ from goods purchased through official distribution channels. Any claims or promises regarding such aspects made by the local supplier are subject to the FTA.
When to Seek Independent Legal Advice
Individuals seeking to understand their specific rights and obligations regarding parallel imported goods, or who believe a breach of the Consumer Guarantees Act 1993 or the Fair Trading Act 1986 has occurred, should consider contacting Community Law Centres for free legal assistance or seeking advice from a qualified legal professional. The Commerce Commission also provides information on consumer rights.