Where you sell goods to consumers, there will inevitably be situations when your customers wish to make a return. In New Zealand, several consumer law protections ensure consumers receive quality products, and they can seek a remedy if they are dissatisfied with their purchase. As a business, it is important to know the consumer remedies available to comply with your legal obligations. This article explains when consumers can return goods and how to ensure you honour your obligations under consumer law.<\/p>\n\n\n\n
The Consumer Guarantees Act 1993<\/a><\/em> (CGA<\/strong>) establishes guarantees that apply to all goods purchased from a business for personal use. Under the CGA, consumers are entitled to a remedy where the good fails to satisfy the following conditions.<\/p>\n\n\n\n It is important to note that these guarantees are not limited to new items. They apply to new and used goods, meaning that second-hand items must also meet these criteria.<\/p>\n\n\n\n Where your goods fail to comply with consumer laws, customers have the right to return the goods and receive a remedy. <\/p>\n\n\n\n This remedy may be in the form of a:<\/p>\n\n <\/ul>\n <\/p>\n<\/div>\n\n\n\n The choice of remedy you offer your consumers will vary depending on factors such as the extent of the fault or whether you can easily fix the issue. You can choose the appropriate remedy if the problem is a minor fault. Accordingly, you might repair the item, which will likely come at a lower cost than offering a replacement or refund. However, if the fault is serious, the customer gets to decide which of the three remedies they want.<\/p>\n\n\n\n A problem is serious when:<\/p>\n\n\n\nFit for Purpose<\/strong><\/td> Goods must be fit for purpose. This means that if a consumer purchases a product with a specific purpose in mind and it does not meet that purpose, they have the right to a remedy. <\/td><\/tr> Acceptable Quality<\/strong><\/td> Goods must be of acceptable quality, meaning they must be free from defects, safe to use, and durable.<\/td><\/tr> Match Description and Samples<\/strong><\/td> Goods must match their description and any samples you have provided. If you advertise a product with certain features or specifications and it does not meet those claims, consumers have the right to a remedy.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Responding to a Return<\/h2>\n\n\n\n
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