The Consumer Guarantees Act (CGA) outlines what you should expect from businesses when you purchase products or services, including your right to a refund, repair, or replacement when something goes wrong.
What is the Consumer Guarantees Act?
The Consumer Guarantees Act (CGA) protects consumers and provides a fair and effective system for consumers and businesses to trade confidently by:
- setting minimum guarantees around safety, quality and usability for all products and services sold by businesses trading in New Zealand
- allowing you to seek a remedy, such as a repair, replacement or refund when these guarantees aren’t met.
All businesses and people in trade in New Zealand must meet their responsibilities under the CGA. This means if there is a problem with a product or service, you can do something about it.
Consumer Guarantees Act (external link) — Legislation.govt.nz
When the CGA applies
The Consumer Guarantees Act applies to products and services:
- bought or gifted to you from a business selling goods directly to persons in New Zealand, including online, for personal or household use
- regardless of any store guarantees or warranties
- including any rights, benefits or facilities provided by a supplier, even if they do so free of charge or you don’t have a contract with the supplier.
It’s not always easy to know if you are entitled to a remedy if there is a problem with your product or service. Check your rights to repairs, replacements and refunds for products. Our Consumer Rights Finder will take you through common situations that can be a little tricky to figure out.
When the CGA does not apply
The Consumer Guarantees Act does not apply if you:
- got what you asked for but simply changed your mind
- misused or altered a product in any way that caused the problem, for example, not following the manufacturer’s instructions for use
- disposed of, lost, destroyed, or damaged products after delivery
- were made aware of faults before you bought the product
- bought it privately, including through Trade Me, Marketplace, eBay or at an auction, or through someone who isn’t a registered business
- bought it for business use when the businesses have agreed in writing that the Consumer Guarantees Act doesn’t apply
- relied on anyone else's advice or conduct that caused the problem other than the service provider or their agent, or
- it was donated by a charity for your benefit
- purchased the product for resale or to use in a manufacturing process.
Even if the Consumer Guarantees Act doesn’t apply, other laws protect consumers including the Fair Trading Act, the Credit Contracts and Consumer Finance Act and the Privacy Act.
Learn more about your rights when:
- products and services are misrepresented, or businesses mislead you
- your personal information is not stored or managed securely
- you are borrowing, investing, or buying on credit.
Quality guarantees in the CGA
The CGA sets out quality guarantees any business or person in trade must provide to their customers when selling goods and services.
The guarantees mean you can expect products to be acceptable quality and fit for purpose and that services are performed with due care and skill.
When these guarantees aren’t met, you can expect the business to remedy the situation promptly.
Understanding Product Guarantees
The Consumer Guarantees Act requires all products sold by businesses to be:
- of acceptable quality — they must do what they are made to do, look acceptable, not have defects, be safe, and last a reasonable time
- fit for a particular purpose — they must be suitable for a particular purpose that you asked the trader about, and/or they told you the products were suitable for
- matched with the description — the product you received matches its description online, or on packaging and labels
- reasonably priced - if no price has been agreed, you must only pay what other sellers charge for the same products
- delivered on time and in good condition, or within a reasonable time if no delivery time was agreed.
Understanding Service Guarantees
Under the Consumer Guarantees Act, services such as subscription services like phone or internet, household plumbing, a haircut, or fixing your car, are covered by the following guarantees.
- Any work done must be carried out with reasonable care and skill, meaning it should meet the standard of a competent person with average skills and experience, applied with technical know-how.
- Services must be fit for the particular purpose you request. If the provider accepts the job, they are responsible for ensuring the result you want. If they cannot guarantee the outcome, they must inform you before starting. If you insist on a service despite the provider's warning, you may not be able to rely on the guarantees of ‘fit for purpose’ or ‘reasonable care and skill’.
- If no timeframe is agreed upon, the work must be completed within a reasonable time, defined by how long it would take a competent professional in that field.
- If no price is set, you are only required to pay a reasonable price, which can be determined by comparing what other local providers charge for similar services.
Gathering evidence to support your complaint
Under the Contract and Commercial law act, suppliers may not be liable if work can't be completed because of events beyond their control, also called ‘force majeure’.
Your right to a remedy
The Consumer Guarantees Act gives you the right to seek a remedy from the business when a product or service you have purchased is faulty or poor quality or does not meet one of the other consumer guarantees.
The remedies set out in the CGA differ for products and services, and depend on how serious the failing is.
Remedies when a product doesn’t comply with the guarantees
The business can remedy the problem by repairing or replacing the product (with an identical model) or providing a refund. The remedy must be provided at no charge and within a reasonable time.
If the business refuses or does not do so within a reasonable time you can have the product repaired elsewhere and request the supplier pays for all reasonable costs for doing so, or you can return the product.
Where a remedy isn’t provided in a reasonable time or is of substantial character, you can:
- return the product and ask for a refund or a replacement
- keep the faulty product but get compensation for the difference in value compared with one in good condition.
In addition to these remedies, you can claim compensation for any additional loss or damage to you from the failure.
A problem or fault is of substantial character if:
- a reasonable person would not have bought the product if they had known about the fault, taking into account the nature of the fault, price paid and other information that might indicate expected durability of the product
- the product is significantly different to its description, sample, or demonstration model
- the product is unfit for its normal purpose and can't easily be put right within a reasonable time, for example, washable wallpaper that bubbles after being wiped clean
- it doesn’t achieve a particular result that you told the service provider you wanted, and can’t be easily fixed within a reasonable period of time
- it’s unsafe, for example, a bicycle with faulty brakes.
A ‘reasonable time’ is defined by how long it would take most businesses to fix or replace the product.
Sometimes a business may offer an alternative, such as a discount on another item or a store credit. It’s up to you to decide if the offer is fair, but you don’t have to accept it.
If the business is not willing to negotiate you can seek help to get a resolution.
Get a final decision on a complaint
Remedies when a service does not comply with the guarantees
If a service fails to comply with one of the service guarantees:
If it can be fixed you can require the supplier to fix the problem within a reasonable time. If the supplier refuses or fails to do so within a reasonable time you can have it fixed elsewhere and recover the costs from the supplier or cancel the contract for the supply of the service.
If it can’t be fixed or the failure is of ‘substantial character’, you can cancel the contract for supply of service and ask for a refund. If you haven’t paid yet, you can refuse to pay for the work. If the service has already been provided and is still of some value, you may only be entitled to a partial refund, or you may still need to pay for some of the work.
In addition to these remedies, you can claim compensation for any additional loss or damage to you from the failure.
A problem or fault with a service is of ‘substantial character’ if:
- a reasonable person would not have purchased the service if they had known about the nature and extent of the service failure
- the result of the service doesn’t achieve a particular result that you agreed with the service provider you wanted and can’t be easily fixed to achieve that purpose within a reasonable period of time
- the result of the service provided is unsafe e.g. an electrician wires a wall socket incorrectly.
If you think it’s a substantial character problem, but the supplier does not, get a second opinion from someone who knows about that type of product.
Gather evidence to support your complaint
Learn more about your rights and remedies, claiming for loss or damages and what to expect here.
Business responsibilities when resolving problems
Businesses should not say they don't give refunds, or put conditions to refunds, such as set time frames. Businesses also cannot limit their obligations to the terms of a store or manufacturer’s warranty.
A business who tries to contract out of the CGA commits an offence under the Fair Trading Act.
If you feel you have been misled by the seller in this way or during the sales process, you may wish to make a formal complaint to the Commerce Commission.
Obligations under the Consumer Guarantees Act
Your rights as a consumer(external link) — Commerce Commission
Special guarantees and protections
Some products and services have special guarantees and conditions in addition to the CGA that may impact your rights.
Electricity and gas services must meet a specific guarantee of acceptable quality. This guarantee applies instead of the general CGA guarantees that apply to products and services.
There are also special guarantees on domestic and international flights, cancellations, and flight delays. You can find more specific details about these categories listed below.
Consumer guarantees for gas and electricity services
When things go wrong
The CGA protects you by giving you guarantees and rights to remedies when things go wrong but it’s up to you to act.
Start by contacting the business to make a complaint. We have tips and guidance to help you prepare and complain with confidence.
Contacting the business with a complaint
If you’ve already contacted the business and you can’t agree on a remedy, you can get a final decision through the Disputes Tribunal or other resolution service.
For general enquiries please contact us