{"id":205720,"date":"2021-05-18T17:51:46","date_gmt":"2021-05-18T04:51:46","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=205720"},"modified":"2024-07-16T20:00:14","modified_gmt":"2024-07-16T07:00:14","slug":"consumer-guarantees-products","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/consumer-guarantees-products\/","title":{"rendered":"I Sell Products in NZ. What Consumer Guarantees Do I Owe My Customers?"},"content":{"rendered":"\n<p>All businesses that sell products in New Zealand to consumers are subject to consumer law protections. The law imposes product standards on businesses through consumer guarantees. As such, these are promises you make about your product\u2019s quality, fitness for purpose, and other aspects of the sale. These guarantees also apply to <a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/services-consumer-guarantees\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>services<\/u><\/a>. This article will explain how consumer law applies to your business and what consumers guarantee you owe your customers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Does Consumer Law Apply to My Business?<\/h2>\n\n\n\n<p>There are two key laws that your business should be aware of to protect consumer rights. These are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>the&nbsp;<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/consumer-guarantees-act\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>Consumer Guarantees Act (CGA)<\/u><\/a>; and<\/p><\/li>\n\n\n\n<li><p>the&nbsp;<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/what-is-the-fair-trading-act-in-new-zealand\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>Fair Trading Act (FTA)<\/u><\/a>.<\/p><\/li>\n<\/ul>\n\n\n\n<p>In most cases, both of these laws apply to businesses or individuals \u2018in trade\u2019. You will likely be in trade if you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>regularly sell goods or services;<\/p><\/li>\n\n\n\n<li><p>purchase or manufacture goods to sell them on;<\/p><\/li>\n\n\n\n<li><p>have staff;<\/p><\/li>\n\n\n\n<li><p><a href=\"https:\/\/legalvision.co.nz\/business-structures\/what-is-gst-in-new-zealand\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>register for GST<\/u><\/a>; or<\/p><\/li>\n\n\n\n<li><p>operate from a corporate structure.<\/p><\/li>\n<\/ul>\n\n\n\n<p>When you are in trade, then you need to ensure your goods meet their relevant consumer guarantees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When Do Consumer Guarantees Not Apply to My Products?<\/h2>\n\n\n\n<p>However, consumer guarantees will not cover all of your sales. The Consumer Guarantees Act only covers&nbsp;<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/whats-the-difference-between-consumer-products-and-commercial-products-in-nz\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>consumer goods<\/u><\/a> that you sell to consumers for personal or domestic use. Examples include clothing products or personal electronics like laptops. It does not apply to commercial products which you sell to another business for business use.<\/p>\n\n\n\n<p>For instance, if your business exclusively sells rolls of fabric to another business for manufacture, this is not for personal or domestic use. Therefore, you may not need to meet consumer guarantees.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/does-consumer-law-apply-to-private-sales-in-nz\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>Private sellers<\/u><\/a> who do not regularly sell goods or services, such as consumer to consumer sales on TradeMe, also do not need to uphold consumer guarantees.<\/p>\n<\/div>\n\n\n\n<p>If you sell your goods to another business, the parties can agree to&nbsp;<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/contract-out-consumer-guarantees-act-nz\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>contract out<\/u><\/a>&nbsp;of the CGA, and consumer guarantees do not apply to your transaction. However, you cannot contract out of the CGA in sales with everyday consumers. Trying to do so and&nbsp;<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/what-is-misleading-or-deceptive-conduct-in-new-zealand\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>misleading consumers<\/u><\/a>&nbsp;about their rights is against the law.<\/p>\n\n\n\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 href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you 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The table below sets out what standards you need to meet if you sell products to consumers.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p>Consumer Guarantee<\/p>\n<\/td><td>\n<p>Explanation<\/p>\n<\/td><\/tr><tr><td>\n<p>Fit for Purpose<\/p>\n<\/td><td>\n<p>Your products need to be suitable for the reason a customer bought them. If a customer asks for a cleaning product that can eliminate mould in their bathroom, you should give them the best product for the job.<\/p>\n<\/td><\/tr><tr><td>\n<p>Acceptable Quality<\/p>\n<\/td><td>\n<p>This guarantee is open-ended and depends on the context, such as the price your customers pay. It means that your products meet their purpose, are free from minor faults, are safe and durable, and are acceptable in appearance and finish.<\/p>\n<\/td><\/tr><tr><td>\n<p><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/nz-consumer-law-claim-products\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>Matching Description<\/u><\/a><\/p>\n<\/td><td>\n<p>Your products need to match the way you describe them. So, if you sell online, then your products need to match your descriptions and pictures.<\/p>\n<\/td><\/tr><tr><td>\n<p>Matching Demonstrations or Samples<\/p>\n<\/td><td>\n<p>If you give in-store demonstrations or hand out samples to customers, the products you sell need to match these.<\/p>\n<\/td><\/tr><tr><td>\n<p>Sell at a Reasonable Price<\/p>\n<\/td><td>\n<p>You may not have a set price for some products before the customer agrees to enter a contract, such as commissioning an art piece. In these situations, the price you set after the fact needs to be reasonable.<\/p>\n<\/td><\/tr><tr><td>\n<p><a href=\"https:\/\/legalvision.co.nz\/e-commerce\/deliver-products-new-zealand\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>Satisfactory Delivery<\/u><\/a><\/p>\n<\/td><td>\n<p>If you manage product delivery, you need to ensure that goods arrive on time and are in good condition. You also need to ensure you update customers on any significant delays in delivery.<\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>There are also extra guarantees if you manufacture goods or you are the first to sell the products in the country. You need to ensure that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>there are spare parts and repair facilities available;<\/p><\/li>\n\n\n\n<li><p>you honour any written warranties with your products;<\/p><\/li>\n\n\n\n<li><p>products match their description; and<\/p><\/li>\n\n\n\n<li><p>products meet an acceptable standard of quality.<\/p><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Remedying a Broken Consumer Guarantee<\/h2>\n\n\n\n<p>If you break one of your consumer guarantees, you need to give the affected customer a&nbsp;<a href=\"https:\/\/legalvision.co.nz\/e-commerce\/what-are-the-legal-requirements-for-a-returns-policy-online-in-new-zealand\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>remedy<\/u><\/a>, either a:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>repair;<\/p><\/li>\n\n\n\n<li><p>replacement; or<\/p><\/li>\n\n\n\n<li>refund.<\/li>\n<\/ul>\n\n\n\n<p>If the fault or problem is minor, such as a toy car\u2019s easily replaceable wheel falling off, then you get to choose the remedy. However, if there is a major problem, then the customer gets to choose the remedy. A problem is major if the customer would not have bought the product if they knew about the issue or if the product:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>is unsafe;<\/p><\/li>\n\n\n\n<li><p>does not match its description at all; or<\/p><\/li>\n\n\n\n<li>is not fit for this purpose, and you cannot easily fix it.<\/li>\n<\/ul>\n\n\n\n<p>You only have to give a remedy if you have broken a consumer guarantee. You do not have to provide a remedy if a customer changes their mind or damages the product themselves.&nbsp;For example, you have to provide a remedy for a laptop that does not turn on when the customer first uses it because it is clearly faulty and breaks a consumer guarantee. However, if the customer drops the laptop and cracks the screen, you may not have to provide a remedy.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/08\/18195054\/nz-corporate-governance-guide-560px.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Corporate Governance Guide for SMEs in NZ<\/div>\n            <div class=\"body-text\">\n                <p>Download our free guide to understand your corporate governance responsibilities.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/nz-corporate-governance-guide.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>When you sell products to consumers, you must ensure that you meet your consumer guarantees. These guarantees ensure product quality and fair sales. In the case where you need to remedy a broken consumer guarantee, there are a couple of avenues you can take. This includes repairing or refunding, depending on the circumstances of your situation.<\/p>\n\n\n\n<p>If you would like more information or assistance regarding consumer guarantees, our experienced <a href=\"https:\/\/legalvision.co.nz\/regulatory-lawyers-lp\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>regulatory and compliance lawyers<\/u><\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><u>membership page<\/u><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1621303459737\"><strong class=\"schema-faq-question\"><strong>What are consumer guarantees?<\/strong><\/strong> <p class=\"schema-faq-answer\">Consumer guarantees are promises that you make about the quality and nature of your goods and services. The law requires that you meet them, and you must provide a remedy if you fail to do so.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1621303470386\"><strong class=\"schema-faq-question\"><strong>What goods and services do consumer guarantees apply to?<\/strong><\/strong> <p class=\"schema-faq-answer\">Consumer guarantees apply to any goods or services a consumer buys for personal or domestic use. This can include couches, televisions, and clothing.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1621303480071\"><strong class=\"schema-faq-question\"><strong>What does \u2018in trade\u2019 mean?<\/strong><\/strong> <p class=\"schema-faq-answer\">In trade refers to a seller&#8217;s trading status. A seller is in trade if they regularly sell goods or services or purchase\/manufacture goods to sell.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"90c4126e1b\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/205720\" \/>            <input value=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/consumer-guarantees-products\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"I Sell Products in NZ. What Consumer Guarantees Do I Owe My Customers?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>All businesses that sell products in New Zealand to consumers are subject to consumer law protections. The law imposes product standards on businesses through consumer guarantees. As such, these are promises you make about your product\u2019s quality, fitness for purpose, and other aspects of the sale. These guarantees also apply to services. This article will<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/consumer-guarantees-products\/\">Continue reading <span class=\"sr-only\">&#8220;I Sell Products in NZ. What Consumer Guarantees Do I Owe My Customers?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13236,"featured_media":25,"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":[25,54,85,229,253],"class_list":["post-205720","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulatory-and-compliance","tag-small-business","tag-medium-business","tag-consumer-guarantees","tag-consumer-guarantees-act","tag-remedy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Consumer Guarantees Do I Owe? | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"If you sell products in New Zealand, you owe your customers certain consumer guarantees. 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