{"id":202577,"date":"2021-02-18T12:24:36","date_gmt":"2021-02-17T23:24:36","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=202577"},"modified":"2021-03-19T17:52:35","modified_gmt":"2021-03-19T04:52:35","slug":"can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/","title":{"rendered":"Can I Refuse to Give a Customer a Change of Mind Refund in NZ?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">When selling goods or services to your customers, you will likely come across times when customers ask for a refund. In some situations, the law will require you to give them a refund. In other instances, however, it is up to your discretion. If a customer has reconsidered a purchase and wants a change of mind refund, it is up to you whether you give them one. This article will explain when you do not have to give customers a refund and when you do.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Do I Legally Have to Give a Customer a Refund if They Change Their Mind?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">There are certain situations where the law states that you have to give a customer a remedy for their issue or complaint, including refunds. If a <a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/create-complaints-process-nz-business\/\">customer\u2019s complaint<\/a> falls outside of these circumstances, however, then the law does not require you to give them a refund or another kind of remedy. Such times are when a customer:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">changes their mind about their purchase;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">misuses the product or does not follow instructions explaining how to use it properly, and the product breaks;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">modifies or alters the item in some way;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">gets someone else to fix your product before coming back to you;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">breaks, damages, or disposes of your product after delivery; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">buys a faulty product, knowing that the product was faulty at the time of purchase.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">If a customer decides to go with a different option while you are fulfilling a service, you do not have to give them a refund. <\/span><\/p>\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, say you are in the middle of fixing a customer\u2019s car when they decide to go with a cheaper mechanic. You do not have to give them a refund for the work you have already done, because they changed their mind.<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400\">Exceptions<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Sometimes, the nature of a contract means that customers are entitled to a \u201ccooling-off period\u201d to cancel a contract if they change their mind. You would then have to give them a refund for what they have already paid. These kinds of cases include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">lay-by sales;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">credit contracts;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">door-to-door sales; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">unsolicited products or services.<\/span><\/li>\n<\/ul>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a 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These consumer guarantees are set out below.<\/span><\/p>\n<table class=\" lv-table lv-table--style-1\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>\n<p><b>Products<\/b><\/p>\n<\/td>\n<td>\n<p><b>Services<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Your consumer products must:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be of acceptable quality;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be fit for purpose;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">match the description, demonstrations, or photos you provide;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be delivered on time and in good condition;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">have relevant spare parts or repair facilities available if the customer needs;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be sold at a reasonable price, if there is no set price already; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be sold legally.<\/span><\/li>\n<\/ul>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Your consumer services must be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">fit for their intended purpose;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">carried out with appropriate and reasonable care and skill;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">reasonably priced when you do not provide a set price; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">finished within a reasonable time frame if you do not specify a time period.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400\">If you do not fulfil one of these consumer guarantees, you have to give your customer a remedy. This would be either a:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">replacement;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">repair; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">refund.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">If the problem with the good or service you provided was minor, then you get to choose what kind of remedy you give. But if it was a serious problem, the customer gets to decide. So if they ask for a refund, in this case, you must provide them with one.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">It is illegal to put a sign up in your business that says \u201cNo refunds.\u201d<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Your Discretion to Give a Refund<\/span><\/h2>\n<p><span style=\"font-weight: 400\">You could operate your business\u2019 <a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/what-should-my-new-zealand-business-include-in-a-refund-policy\/\">refund policy<\/a> at the legal minimum, only giving refunds to a customer if there was a problem with the product or service you provided. But you have the discretion to tailor your refunds policy to suit your business, as long as you offer this legal minimum.<\/span><\/p>\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, the law does not require you to give your customer a refund if they change their mind, but it may be an effective way to generate customer goodwill if you do. Customers may be more inclined to purchase goods or services from a business where they know they can change their mind and get their money back.<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">No matter what you decide, it is a good idea to create a refunds policy, so that customers know what their options are when they buy from you.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">If a customer changes their mind and wants a refund for a good or service you provided, you can refuse to give them one. But, you cannot refuse to give a customer a remedy if there was a legitimate fault with that product or service. You may also decide to give customers a refund anyway if they change their minds, which can generate customer goodwill. If you would like guidance around your business\u2019 refund policy, contact <a href=\"https:\/\/legalvision.co.nz\/regulatory-lawyers-lp\">LegalVision\u2019s <\/a><\/span><a href=\"https:\/\/legalvision.co.nz\/regulatory-lawyers-lp\"><span style=\"font-weight: 400\">regulatory and compliance<\/span><\/a><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.nz\/regulatory-lawyers-lp\"> lawyers<\/a> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1613603308792\"><h3 class=\"schema-faq-question\">Can I refuse to give customers a refund?<\/h3> <p class=\"schema-faq-answer\">If a customer comes to you with a genuine fault in your good or service, you cannot outright refuse to give them a remedy. If a problem is minor, you can decide whether that remedy is a repair, replacement or refund.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1613603331607\"><h3 class=\"schema-faq-question\">When do I have to give a customer a refund?<\/h3> <p class=\"schema-faq-answer\">You have to give a customer a refund if they find a genuine fault with your goods or service (or you break one of your consumer guarantees in some other way) and the fault is serious. In this case, they get to decide whether they get a repair, replacement or refund as their remedy.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1613603359016\"><h3 class=\"schema-faq-question\">Do I have to give a customer a refund if they change their mind?<\/h3> <p class=\"schema-faq-answer\">Under the law, you do not need to give a customer a refund if they change their mind. However, you may do so anyway if it suits your business, as doing so can generate customer goodwill.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1613603379095\"><h3 class=\"schema-faq-question\">Do I need proof of purchase for a refund?<\/h3> <p class=\"schema-faq-answer\">If you are trying to get a refund, then you should provide some proof of purchase, such as a receipt. This way the store or business you purchased from can confirm your purchase.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>When selling goods or services to your customers, you will likely come across times when customers ask for a refund. In some situations, the law will require you to give them a refund. In other instances, however, it is up to your discretion. If a customer has reconsidered a purchase and wants a change of<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/\">Continue reading <span class=\"sr-only\">&#8220;Can I Refuse to Give a Customer a Change of Mind Refund in NZ?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13236,"featured_media":201797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[8],"tags":[25,85,262,574],"class_list":["post-202577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulatory-and-compliance","tag-small-business","tag-consumer-guarantees","tag-refund-policy","tag-consumer-law"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Can I Refuse to Give a Change of Mind Refund? | LegalVision<\/title>\n<meta name=\"description\" content=\"Can you refuse to offer a refund to a customer if they change their mind? This article sets out when you must offer refunds in New Zealand.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can I Refuse to Give a Change of Mind Refund? | LegalVision\" \/>\n<meta property=\"og:description\" content=\"Can you refuse to offer a refund to a customer if they change their mind? This article sets out when you must offer refunds in New Zealand.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision New Zealand\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-17T23:24:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-19T04:52:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/01\/11151434\/lala-azizli-OFZUaeYKP3k-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Emma Lindblom\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Emma Lindblom\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/\"},\"author\":{\"name\":\"Emma Lindblom\",\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/#\\\/schema\\\/person\\\/32362b5331a9cb23e31b656d199e7b72\"},\"headline\":\"Can I Refuse to Give a Customer a Change of Mind Refund in NZ?\",\"datePublished\":\"2021-02-17T23:24:36+00:00\",\"dateModified\":\"2021-03-19T04:52:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/\"},\"wordCount\":1041,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/img.legalvision.com.au\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2021\\\/01\\\/11151434\\\/lala-azizli-OFZUaeYKP3k-unsplash.jpg\",\"keywords\":[\"small business\",\"consumer guarantees\",\"refund policy\",\"consumer law\"],\"articleSection\":[\"Regulatory and Compliance Articles\"],\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/\",\"url\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/\",\"name\":\"Can I Refuse to Give a Change of Mind Refund? | LegalVision\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/legalvision.co.nz\\\/regulatory-and-compliance\\\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/img.legalvision.com.au\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2021\\\/01\\\/11151434\\\/lala-azizli-OFZUaeYKP3k-unsplash.jpg\",\"datePublished\":\"2021-02-17T23:24:36+00:00\",\"dateModified\":\"2021-03-19T04:52:35+00:00\",\"description\":\"Can you refuse to offer a refund to a customer if they change their mind? 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She is experienced at writing for online publications and wants to use these writing skills to make legal information transparent and accessible for anyone. Emma has a double degree in Law and Politics, with a minor in Psychology.","url":"https:\/\/legalvision.co.nz\/author\/emmalindblom\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/#faq-question-1613603308792","name":"Can I refuse to give customers a refund?","acceptedAnswer":{"@type":"Answer","text":"If a customer comes to you with a genuine fault in your good or service, you cannot outright refuse to give them a remedy. If a problem is minor, you can decide whether that remedy is a repair, replacement or refund.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/#faq-question-1613603331607","name":"When do I have to give a customer a refund?","acceptedAnswer":{"@type":"Answer","text":"You have to give a customer a refund if they find a genuine fault with your goods or service (or you break one of your consumer guarantees in some other way) and the fault is serious. In this case, they get to decide whether they get a repair, replacement or refund as their remedy.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/#faq-question-1613603359016","name":"Do I have to give a customer a refund if they change their mind?","acceptedAnswer":{"@type":"Answer","text":"Under the law, you do not need to give a customer a refund if they change their mind. However, you may do so anyway if it suits your business, as doing so can generate customer goodwill.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/can-i-refuse-to-give-a-customer-a-change-of-mind-refund-in-nz\/#faq-question-1613603379095","name":"Do I need proof of purchase for a refund?","acceptedAnswer":{"@type":"Answer","text":"If you are trying to get a refund, then you should provide some proof of purchase, such as a receipt. 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