For advice that’s more specific to your situation, our paying members can contact our Consumer Advisory Service. Our advisers will talk you through your rights and help you resolve problems with a retailer or service provider. The Act covers the goods (new and second-hand) and services ordinarily purchased for personal, domestic or household use. Those “goods” include pretty much everything in and around the home – from appliances to vehicles, furniture to food. Gas, electricity, water and computer software are also covered. “Services” include things done by tradespeople like plumbers and painters, professionals like dentists and lawyers, after-sales and repair services from shops, and all the services you get from insurers, petrol stations, travel agents ... in general, if you pay for it, it’s covered. The Act applies to gifts. If you’re given something, you have the same rights as if you bought it yourself, and can seek redress directly for any problem.
It also applies to goods that you hire. The Act only applies if you buy goods or services from sellers “in trade”. This means it does not cover private sales. However, it does cover goods sold in second-hand shops and sales, and goods sold over the internet by New Zealand businesses. The Act does not cover the purchase of houses, although it does cover house repairs. Nor does it cover goods or services usually bought for commercial use, such as medical equipment or the installation of industrial machinery. Sellers cannot exempt themselves from their obligations under the Act, even if they put it in a contract. So, if a retailer puts up a sign saying “No refunds or exchanges” it is meaningless. You still have full rights under the Act. This also means guarantees and warranties cannot state “No consequential losses are covered,” because attempts to contract out of the Act may mislead consumers about their rights. The Commerce Commission may use the Fair Trading Act to prosecute traders who attempt to contract out of the Act.
However, sellers can contract out of the Act when goods are used for business. When a product is ordinarily purchased for domestic use but is also used for business purposes – like a mobile phone, for example – the Act will allow a seller to contract out of the Act. Any contracting out must be done in writing at the point of sale. Under the Act, your consumer rights are expressed as a series of “guarantees” that a seller automatically makes to you when you buy any good or service ordinarily purchased for personal use. Retailers and other suppliers guarantee their goods will: Manufacturers (the definition includes importers) in New Zealand guarantee that: The Act’s terms “reasonable” and “acceptable” are deliberately open-ended. It depends on what a reasonable consumer would think was acceptable based on the nature of the goods, the price, any statements that have been made about the goods, and the nature of the supplier and context in which the goods are supplied.
A concert violin is required to meet a higher standard than a child’s cheap instrument. Ultimately a tribunal referee or a judge may have to decide what is reasonable or acceptable in the circumstances. If a defect was pointed out to you before you bought the good, then it doesn’t count towards making it unacceptable. Service providers guarantee their services will be: If something goes wrong, you have the right to insist that the seller or service provider fixes things. Generally speaking, this means the retailer who sold you the goods or services must sort out the problem. If the stitching comes apart on your fairly new shoes, you don’t have to track down the manufacturer or importer, you simply take them back to the shop. If the problem is minor, and can be fixed, the retailer can choose to either repair, replace or refund. A service provider must fix the problem within a reasonable time. If the problem can’t be fixed, or can’t be put right within a reasonable time, or is substantial, you can:
When you have the right to reject the goods, sellers cannot just offer a credit note. If you want a refund, you are entitled to it – by cash, cheque or credit card charge reversal. In addition to these rights, consumers may also claim for any reasonably foreseeable extra loss that results from the initial problem. If your new washing machine won’t work properly you can claim for laundry costs or the cost of hiring a replacement machine while the first one is being fixed. If you have to post or courier goods back to be repaired, you don’t have to pay for those costs. The compensation for consequential loss must put you back in the position you would have been in if the goods or service hadn’t been faulty. When a faulty product is replaced, any manufacturer’s warranty on the product usually runs only from the original purchase date. So, if a 6-month-old washing machine is replaced because it is faulty, and there was originally a 12-month manufacturer’s warranty on it, then this warranty will have 6 months to run on the new machine.
However, the Consumer Guarantees Act applies to the replacement, so you will still have all the rights you’re entitled to when buying a new machine. If there is a problem with the retailer, you can complain to the manufacturer (if it has an office in New Zealand) or where the goods are imported, to the importer or distributor. Where there has been a breach of the Act, manufacturers and importers are obliged to: Complaining to the manufacturer is useful when, for example, the retailer has gone out of business or is proving hopeless to deal with. But in most cases it should be easier to insist on your rights directly with the retailer. If a product has parts made by different manufacturers, you can claim against any or all of them. However, in practice your best bet may be to contact the one whose name is on the product. You (or someone you know) can pay & pick up online orders at a Kmart store - and even use an international credit card. U.S. shipping & delivery