Returning faulty goods: your consumer rights

When you buy goods or services from a business in New Zealand, the Consumer Guarantees Act (CGA) protects you. If something has a problem, you can ask for a repair, a replacement or a refund. But simply changing your mind is not a legal reason to return something. The Fair Trading Act covers false advertising and misleading prices.

Key facts

Who and what is covered

Goods and services for personal or household use, bought from a business that trades in New Zealand (including online shops). This applies whether or not the business has its own warranty.¹

Changing your mind

Not a legal right. If nothing is wrong with the item and you just changed your mind, the business usually does not have to give a refund or exchange, unless its own returns policy allows it.²

Minor problem (can be fixed)

The business can choose to repair it, replace it with the same item, or refund you. This must be free and done within a reasonable time.¹

Major problem (substantial character)

You choose: return the item for a refund or replacement, or keep it and ask for compensation for the drop in value.¹

Business offers only store credit

You can refuse it.¹

What a layby is

You pay in instalments, and the business keeps the goods until you have paid in full (or paid an agreed amount). The goods cost less than NZ$30,000. The business cannot charge interest.³

Cancelling a layby

You can cancel for any reason before the final payment. The business must refund everything you have paid straight away, but it can charge a reasonable cancellation fee.³

Layby account statement

You can ask for a free account statement at any time. The business must give it to you within five working days.³

Extended warranty cooling-off period

Within 5 working days of receiving your copy of the extended warranty, you can cancel by telling the seller verbally or in writing, and get a full refund.⁴

After the manufacturer's warranty ends

Your rights under the CGA still apply.⁴

Who is this for, and what are the requirements?

• Consumers who buy goods or services for personal or household use from a business (including online shops and overseas businesses selling in New Zealand)
• Gifts that someone bought for you from a business are also covered by the CGA
• Not covered: buying from a private seller (including from individuals who are not registered traders on Trade Me, Marketplace, eBay or at auctions), buying to resell or use in production, and business purchases where both sides agreed in writing that the CGA does not apply

How do I do it? Steps and process

1. Check if it is a quality problem

   Under the CGA, goods must be of acceptable quality (work properly, look acceptable, have no defects, be safe and last a reasonable time), fit for any purpose you told the seller about, and match their description. Changing your mind, finding a cheaper price, or damaging or losing the item yourself is not covered by the CGA.

2. Take proof of purchase to the seller

   Go to the business that sold you the item, not the manufacturer. A receipt, bank statement or the original packaging can all be proof of purchase. If the business tells you to go to the manufacturer or a repairer yourself, it may be breaking the Fair Trading Act by misleading you about your rights.

3. Decide if the problem is minor or major

   For a minor problem that can be fixed, the business chooses to repair, replace or refund. For a major problem (you would not have bought it if you had known, it is very different from the description, it cannot be used normally and cannot easily be fixed in time, or it is unsafe), you choose a refund or replacement, or keep it and ask for compensation for the drop in value. If the business delays fixing it, you can also treat it as a major problem.

4. If the business refuses or delays

   If the business won't repair the item or takes too long, you can get someone else to fix it and ask the business to pay reasonable costs. You can also return the item. If you disagree about whether the problem is major, you can get a second opinion from an expert in that kind of product.

5. If you still can't agree, use formal options

   You can get free advice from Citizens Advice Bureau (CAB) or a Community Law Centre. If you still cannot sort it out with the business, you can go to the Disputes Tribunal or the District Court.

6. Report false advertising to the Commerce Commission

   Fake discounts, misleading 'was/now' prices, hidden fees and unsupported product claims break the Fair Trading Act. You can report them to the Commerce Commission, but it will not handle your personal dispute. To recover your own losses, you need to go to the Disputes Tribunal or the District Court.

What documents do I need?

• Proof of purchase, such as a receipt, or a bank or credit card statement
• The original packaging (if you still have it)
• Photos or videos of the problem
• Emails and chat messages with the business
• Screenshots of the advert or product description (for false advertising)

What should I watch out for?

• Businesses should not put up 'no refunds' signs or set fixed time limits for refunds. They also cannot use their own or the manufacturer's warranty to limit their CGA responsibilities.
• A business can legally say it won't accept change-of-mind returns on sale items. But this only applies to changing your mind, not to faulty goods.
• If the business offers an alternative (for example, a discount on a different item, or store credit), it is your choice whether to accept it.
• There is no fixed number of days for a 'reasonable time'. It means the time most businesses would usually need to repair or replace the item.
• If the faulty item caused other damage (for example, a leak that ruined your floor), you can ask for compensation for that too.
• If the manufacturer's warranty is one year and the item breaks after 13 months, you can still go to the seller under the CGA, because goods should last a reasonable time. So in most cases an extended warranty may not be worth buying. Before you buy one, check what it gives you beyond the CGA (for example, accidental damage).
• An extended warranty agreement must state the total price, the terms, how it compares with the CGA, and your right to cancel. If the seller did not explain these when you bought it, you can cancel at any time, even after the warranty has expired.
• If the business goes broke during your layby: if the goods are still there and you have not missed a payment in the last three months, you can pay the rest and take the goods. If the goods are gone, register your claim with the receiver. You will be paid before other unsecured creditors.
• When you buy online from an overseas business, the Fair Trading Act still applies, but it may be hard to enforce in practice.
• If you cancel a booked service early, this is a breach of contract, and the business may charge a cancellation fee under the contract.
• This page only summarises public information and is not legal advice. For a specific dispute, contact Consumer Protection, CAB or a lawyer.

Common questions

Where can I check the official information?

1. Consumer Guarantees ActConsumer Protection (MBIE) · consumerprotection.govt.nz
2. Change of mindConsumer Protection (MBIE) · consumerprotection.govt.nz
3. LaybysConsumer Protection (MBIE) · consumerprotection.govt.nz
4. WarrantiesConsumer Protection (MBIE) · consumerprotection.govt.nz
5. Fair Trading ActConsumer Protection (MBIE) · consumerprotection.govt.nz

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