Understanding Consumer Rights in New Zealand

When shopping online in New Zealand, it’s absolutely crucial for consumers to understand their rights under the law. These rights provide a safety net, ensuring you receive what you paid for, that products are fit for purpose, and that there are avenues for recourse if something goes wrong. Ethical businesses not only comply with these laws but also clearly communicate how they uphold them.

The Consumer Guarantees Act 1993 (CGA)

The Consumer Guarantees Act (CGA) is the cornerstone of consumer protection in New Zealand. It applies to goods and services ordinarily acquired for personal, domestic, or household use. Key guarantees include:

• Acceptable Quality: Goods must be fit for all purposes for which goods of that type are commonly supplied, acceptable in appearance and finish, free from minor defects, safe, and durable.
• Fit for Particular Purpose: If you tell a seller you need goods for a specific purpose and they confirm they are suitable, then the goods must be fit for that particular purpose.
• Match Description: Goods must match the description given by the seller, whether in advertising, packaging, or by the sales assistant.
• Match Sample or Demonstration Model: If you bought goods based on a sample or demonstration, the goods supplied must match that sample or model.
• Reasonable Price: If no price is agreed beforehand, you don’t have to pay more than a reasonable price.
• Repairs and Spare Parts: Manufacturers or importers must ensure that facilities for repair and spare parts are reasonably available for a reasonable time after purchase, unless they notify you otherwise.

What Happens if Goods Fail to Meet a Guarantee?

The CGA specifies remedies based on whether the failure is minor or substantial:

• Minor Failure: The retailer can choose to repair the goods, replace them, or offer a refund.
• Substantial Failure: You have the right to choose:
  • Reject the goods and get a refund or replacement.
  • Claim compensation for any reduction in the value of the goods.

The Fair Trading Act 1986 (FTA)

While the CGA deals with the quality of goods and services, the Fair Trading Act (FTA) focuses on misleading or deceptive conduct in trade. It prevents businesses from making false or misleading claims about products, services, or prices.

• No Misleading Conduct: Businesses cannot mislead consumers about anything significant. This includes:
  • False Representations: Making false claims about a product’s features, benefits, origin, or quality.
  • Misleading Advertising: Using advertising that could deceive or mislead consumers.
  • Bait Advertising: Advertising goods at a low price to attract customers, then pressuring them to buy higher-priced items.
• Information Provision: The FTA also mandates certain disclosures, such as clear pricing and accurate product descriptions.

Consumer Rights in Online Shopping Specifics

While the CGA and FTA apply to all sales, online shopping introduces specific considerations:

• Returns for Change of Mind: The CGA does not grant a right to return goods simply because you’ve changed your mind, unless the retailer explicitly states they offer “change of mind” returns. Ethical retailers often do offer this as a gesture of goodwill, but it’s not a legal right.
• Delivery Issues: If goods are lost or damaged in transit, the retailer is generally responsible for ensuring you receive the goods in good condition, unless the contract explicitly shifts this risk to you upon dispatch.
• Proof of Purchase: Always keep your receipts or order confirmations. These are essential for proving your purchase if you need to make a claim.

What to Do If Your Rights Are Breached

1. Contact the Retailer: Always start by contacting the seller directly to explain the issue and request a remedy. Refer to your rights under the CGA or FTA.
2. Keep Records: Document all communications (emails, chat logs, phone call summaries including dates and times).
3. Seek External Help:
   • Citizens Advice Bureau: For free advice on your rights.
   • Community Law Centres: For free legal advice.
   • Commerce Commission: The Commerce Commission enforces the FTA. You can make a complaint if you believe a business has engaged in misleading or deceptive conduct.
   • Disputes Tribunal: For small claims disputes up to certain monetary limits (currently $30,000). This is a less formal, quicker way to resolve disputes without lawyers.

A website like Techmall.co.nz, which lacks clear policies on returns, shipping, and privacy, makes it significantly harder for consumers to understand and exercise their rights. This lack of transparency is a disservice to customers and poses a risk, as it suggests a potential disregard for fundamental consumer protection principles. Always opt for online stores that clearly outline their adherence to these important legal frameworks. How to Assess an Online Store’s Legitimacy