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Timeframes for completing a service under the CGA

Key Takeaway

In New Zealand, if a service timeframe isn't agreed upon, it must be completed within a reasonable time under the Consumer Guarantees Act 1993. Failure to do so allows consumers to seek remedies. The Fair Trading Act 1986 also prohibits misleading representations about service completion times.

Timeframes for Completing a Service under New Zealand Consumer Law

When a consumer engages a business to provide a service in New Zealand, the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA) provide important protections regarding the timeframe for completing that service. These acts ensure that consumers receive services in a timely manner and that businesses do not mislead them about completion times.

Consumer Guarantees Act 1993 (CGA): Guarantee as to Time of Completion

The CGA establishes a set of guarantees that apply to services provided to consumers. One of these guarantees relates to the time of completion.

  • Implied Guarantee for Reasonable Time: If the time for the completion of the service is not fixed by agreement between the supplier and the consumer, then the service must be completed within a reasonable time [Source: Consumer Guarantees Act 1993, s 30(b)]. What constitutes a reasonable time is assessed on a case-by-case basis, considering factors such as the nature of the service, the industry standards, the complexity of the job, and any communication between the parties.

Remedies for Failure to Comply with the Guarantee

If a service is not completed within the agreed time, or within a reasonable time if no time was agreed, the consumer may have access to remedies under the CGA. The type of remedy available depends on whether the failure can be remedied and whether it is of a substantial character.

  • When Failure Can Be Remedied: If the failure to complete the service on time can be remedied and is not of a substantial character, the consumer may require the supplier to remedy the failure within a reasonable time [Source: Consumer Guarantees Act 1993, s 32(a)]. If the supplier refuses or fails to remedy the failure within a reasonable time, or if the failure is of a substantial character, the consumer may:

    • Have the failure remedied by someone else and recover all reasonable costs incurred from the supplier [Source: Consumer Guarantees Act 1993, s 32(b)(i)].
    • Cancel the contract for the supply of the service [Source: Consumer Guarantees Act 1993, s 32(b)(ii)].
    • Obtain damages from the supplier for any loss or damage resulting from the failure that was reasonably foreseeable as liable to result from the failure [Source: Consumer Guarantees Act 1993, s 32(c)].

  • When Failure is of a Substantial Character: A failure is considered to be of a substantial character if a reasonable consumer fully acquainted with the nature and extent of the failure would not have acquired the service [Source: Consumer Guarantees Act 1993, s 6(b)]. It can also be substantial if the service is unfit for a particular purpose or of unacceptable quality, and the failure cannot be easily remedied [Source: Consumer Guarantees Act 1993, s 7]. If the failure to complete the service on time is of a substantial character, the consumer may:

    • Cancel the contract for the supply of the service [Source: Consumer Guarantees Act 1993, s 32(b)(ii)].
    • Obtain damages from the supplier for any loss or damage resulting from the failure that was reasonably foreseeable [Source: Consumer Guarantees Act 1993, s 32(c)].

Fair Trading Act 1986 (FTA): Misleading Representations

The Fair Trading Act 1986 (FTA) prohibits misleading and deceptive conduct in trade, which can also apply to representations about service completion times.

  • Misleading or Deceptive Conduct Generally: A person in trade must not, 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 means that if a business makes promises about when a service will be completed, and those promises are not true or are likely to create a false impression, they may be breaching the FTA.

  • Unsubstantiated Representations: A person in trade must not make an unsubstantiated representation [Source: Fair Trading Act 1986, s 12A(1)]. An unsubstantiated representation is a representation made without reasonable grounds for making it, regardless of whether the representation is true or not [Source: Fair Trading Act 1986, s 12A(2)]. If a business states a service will be completed by a certain date without having reasonable grounds to believe it can meet that deadline, they may be breaching this section.

  • False or Misleading Representations Regarding Services: A person in trade must not make a false or misleading representation that services are supplied in accordance with a particular standard, quality, or grade, or are of a particular style or model, or have had a particular history or particular previous use [Source: Fair Trading Act 1986, s 13(a)]. While not directly about time, misrepresenting the capacity to complete a service by a certain time could fall under the broader misleading conduct provisions.

Penalties for Breaching the FTA

Breaches of the FTA can result in significant penalties. For individuals, fines can be up to $200,000, and for businesses, up to $600,000 per offence [Source: Fair Trading Act 1986, s 40]. The Commerce Commission is responsible for enforcing the FTA.

When to Seek Independent Legal Advice

Understanding specific rights and obligations in consumer disputes, especially when dealing with complex service agreements or substantial financial loss, often requires tailored guidance. Individuals involved in disputes regarding service completion times are encouraged to consult with Consumer Protection, the Commerce Commission, or their local Community Law Centres for free legal advice.

Key Resources