Consumer Guarantees Act NZ - Receipts, Warranties and CGA Rights
🛍️ Receipts, Warranties and Consumer Guarantees
In New Zealand, two pieces of legislation give you far stronger consumer rights than most people realise. The Consumer Guarantees Act 1993 (CGA) says goods must be fit for purpose, match their description, and last a reasonable time. The Fair Trading Act 1986 (FTA) forbids misleading advertising and deceptive sales tactics. Combined, they mean "all sales final" is usually nonsense, extended warranties are often a waste of money, and the Disputes Tribunal gives you a cheap path to enforce your rights when retailers refuse.
What the CGA Actually Guarantees
Every good you buy from an NZ business must meet SIX guarantees. These apply automatically. The retailer cannot "opt out".
| Guarantee | What It Means |
|---|---|
| Acceptable quality | Fit for normal purpose, free from minor defects, safe, durable |
| Fit for purpose | Must do what you told the retailer you needed it for |
| Match description | Must be as described online, in-store, or by the salesperson |
| Match sample | Must match any sample or demo model shown |
| Reasonable price | (If no price agreed) A fair market price applies |
| Clear title | Seller has the right to sell it; no hidden debts on it |
"Acceptable Quality" - The Big One
The most-cited guarantee. Acceptable quality means a reasonable consumer would be fully satisfied with the goods, knowing their nature, price, and any pre-sale disclosures. Factors:
- Durability: How long should this product reasonably last? A $2,000 fridge should work for 7 to 10 years. A $300 budget phone should last 2 to 3 years.
- Price paid: A $5,000 laptop is held to a higher durability standard than a $500 laptop.
- Nature of product: A pair of hiking boots should withstand outdoor conditions; city dress shoes needn't.
- Description and statements: If it's advertised as "waterproof" it has to actually be waterproof.
- Disclosure of defects: If you're told before purchase (e.g. "this ex-display TV has a scratch on the back"), that's accepted.
There's no fixed time limit. A budget kettle failing at 13 months isn't covered by a 12-month warranty, BUT the CGA may still cover it because reasonable durability for a kettle is 3+ years. This trumps any manufacturer warranty.
Who's Liable: Retailer vs Manufacturer
Here's what most people don't know: under the CGA, the RETAILER is your primary legal contact, not the manufacturer. If you buy a Samsung TV from Harvey Norman and it fails in year 3, your remedy is with Harvey Norman, not Samsung. Harvey Norman cannot say "go to Samsung". They can claim back against Samsung themselves afterwards.
This matters because retailers often try to deflect: "Sorry, out of manufacturer's 12-month warranty, you'll need to contact Samsung directly." This is incorrect. Your CGA rights are against the RETAILER and can last for years.
Receipts, Bank Statements, Proof of Purchase
- Receipts: Best. Photograph big-ticket receipts immediately.
- Bank statements: Accepted as proof if receipt is lost.
- Loyalty card records: Many retailers can look up your purchase via Onecard, Flybuys, etc.
- Email confirmations: Online purchases almost always come with email receipts - search your inbox.
- Credit card statements: Shows the transaction; retailer can usually verify.
Retailers sometimes say "no receipt, no refund". This is wrong. You need to PROVE purchase - any reasonable evidence works.
What Isn't Covered by CGA
- Private sales (online marketplace sales between individuals, not businesses): Caveat emptor applies.
- Businesses buying from businesses: CGA can be contracted out of in B2B.
- Fair wear and tear: Normal ageing isn't a CGA failure.
- Damage you caused: Dropped phone, spilt coffee on laptop. Not the retailer's problem.
- Products you misused: Using a kitchen mixer to mix concrete: not covered.
- Products you bought at auction (specific exclusion) from a Business, but the Fair Trading Act still applies.
- Services are covered by a slightly different set of guarantees (reasonable care and skill, fit for purpose, completed in reasonable time, reasonable price).
📜 Warranties and the Fair Trading Act
Manufacturer Warranty vs CGA: Which Is Better?
Most products come with a manufacturer's warranty (commonly 12 or 24 months). This is a contractual promise from the manufacturer. It's additional to - not a replacement for - your CGA rights.
| Feature | Manufacturer Warranty | Consumer Guarantees Act |
|---|---|---|
| Length | Fixed (e.g. 12 months) | Reasonable durability - could be 3 to 6+ years |
| Who's liable | Manufacturer | Retailer |
| Claim process | Varies - often lengthy, proof required | Direct with retailer, free enforcement via Disputes Tribunal |
| Legal force | Contractual (only what's promised) | Statutory - can't be waived |
In practice: always claim under whichever gives better outcome. If a brand offers a 5-year warranty, use it (it may be faster than asserting CGA rights). If warranty has lapsed but the product failed early for its price, use the CGA.
Extended Warranties: Usually a Bad Deal
"Would you like to add a 3-year protection plan for $399?" Extended warranties are among the highest-margin products in retail. They're usually a bad deal because:
- You already have CGA rights that often cover the same period.
- Failure rates are low: Most products don't fail within the extended period.
- Exclusions are huge: Accidental damage usually excluded, "normal wear and tear" excluded, often only covers manufacturer-only defects.
- Claims process is opaque: Third-party administrators, long waits, lots of paperwork.
- Retailer commission: Salespeople often get 30%+ commission on these, which is why they push them so hard.
Consumer NZ repeatedly recommends declining extended warranties. Use your CGA rights instead. Occasional exceptions: very expensive items (e.g. commercial espresso machines) or items known for high failure rates (which is itself a sign to rethink the product).
The Fair Trading Act 1986
The FTA is the other half of the consumer rights framework. Where the CGA deals with goods/services quality, the FTA deals with HOW things are sold.
FTA prohibits:
- Misleading or deceptive conduct: False or misleading statements about the product or service
- False representations: e.g. "Limited edition" when it's not, "NZ made" when it's imported
- Unsubstantiated claims: "Clinically proven" without actual clinical proof
- Bait advertising: Advertising a great deal with very limited stock, pushing people to upsells
- Pressure selling: High-pressure tactics in-home or by phone
- Uninvited direct sales: 5-day cooling-off period on door-to-door sales over $100
FTA penalties: Up to $200,000 per offence for individuals, up to $600,000 for companies. Enforced by the Commerce Commission.
Online Purchases
All CGA and FTA rights apply to online purchases from NZ sellers. Additional rules:
- Distance Selling (under the FTA): Clear info on price, delivery, and business identity required
- Uninvited direct sales rules (FTA Part 4A): may apply to door-to-door or phone-hassle sales
- Overseas sellers: If you buy from an overseas site (Temu, AliExpress, Amazon US), CGA doesn't apply. Your credit card chargeback may be your main remedy.
- Goods in transit: Goods are the seller's responsibility until delivered to you (unless you chose your own courier)
"Sold As Seen" and Other Dodgy Signs
Retailer tactics that don't actually remove your rights:
- "All sales final" - doesn't override CGA
- "No refunds on sale items" - wrong, CGA still applies to sale items
- "Exchange only, no refund" - CGA lets YOU choose repair/replace/refund for major failures
- "Manufacturer warranty only, talk to them" - retailer is your first point of contact under CGA
- "You agreed to it in the T&Cs" - can't contract out of CGA with consumers
The ONLY time CGA doesn't apply is if the fault was explicitly disclosed before purchase (e.g. "This refurbished unit has a scratch on the screen, reduced price") AND the fault you later complain about is the SAME disclosed fault.
⚖️ Disputes and Enforcement
Step 1: Talk to the Retailer Calmly
Most disputes resolve at this stage. Go in (or call) armed with:
- Your receipt or other proof of purchase
- The product (or photos of the fault)
- A clear description of the problem
- What you want: repair, replace, or refund
- Your CGA rights clearly in mind
Don't start confrontational. Most front-line retail staff genuinely want to help but haven't been trained on CGA specifics. Phrases that work:
- "I'd like to exercise my rights under the Consumer Guarantees Act."
- "I believe this product hasn't lasted a reasonable time for its price and description."
- "Under the CGA, I'd like a [repair / replacement / refund]."
Major Failure vs Minor Failure
This matters because it determines YOUR remedy options:
| Failure Type | Examples | Your Remedies |
|---|---|---|
| Major failure | Doesn't work at all, unsafe, can't be used for purpose, significantly different from description | YOU choose: reject for full refund OR replace OR keep and claim compensation for drop in value |
| Minor failure | Works but has a fault that can be reasonably repaired | RETAILER chooses: repair, replace, or refund (within a reasonable time) |
A laptop that switches off randomly is probably a major failure. A small cosmetic scratch on the casing is a minor failure.
Step 2: Written Complaint
If the front-line response doesn't resolve it, escalate in writing. Email is fine. Structure:
- Date of purchase, item, price, receipt reference
- Description of the fault
- What you've already tried (visited the store on X date, spoke to Y)
- Your CGA rights clearly stated
- What you want (repair/replace/refund)
- Deadline (10-14 working days is reasonable)
- "If this isn't resolved, I'll escalate to the Disputes Tribunal"
Keep a copy. Even the mention of the Disputes Tribunal resolves most disputes because retailers know it's going to cost them time and effort they'd rather avoid.
Step 3: The Disputes Tribunal
If you can't resolve it directly, the Disputes Tribunal is NZ's cheap small-claims forum. Key features:
- Limit: $30,000 per claim
- Filing fee: $60 (as at 2026)
- No lawyers allowed. You represent yourself.
- Referees (not judges): Experienced mediators hear the dispute
- Informal setting: Usually about 1 hour, around a table
- Binding decision: Enforceable like a court order
- Fast: Usually 6-8 weeks from filing to decision
File online at disputestribunal.govt.nz. Bring:
- Receipt and proof of purchase
- The product (if possible) or photos of the fault
- Record of conversations with retailer
- Copy of written complaint
- Any independent assessments (e.g. repair quote)
- Your statement of what you're claiming (refund amount, replacement, etc.)
Chargebacks: Your Credit Card Superpower
If you paid by credit card or Visa/Mastercard debit, you have ANOTHER layer of protection: chargebacks. This is a bank-initiated reversal of the transaction under Visa/Mastercard/Amex rules. Grounds include:
- Goods not delivered
- Goods significantly different from description
- Merchant refuses to refund on a cancelled service
- Unauthorised transaction
- Merchant closed down / liquidated
Time limits: typically 120 days from transaction date. Contact your bank and ask to raise a "chargeback" (not just a dispute). The bank will contact the merchant; if merchant can't prove delivery and good faith, the charge is reversed.
Chargebacks are especially useful for:
- Overseas purchases where CGA doesn't apply
- Purchases from businesses that have gone into liquidation
- Online merchants who stopped responding
Other Useful Bodies
- Commerce Commission: Investigates widespread breaches (e.g. misleading advertising campaigns). Not for individual disputes but worth reporting systemic issues.
- Consumer NZ: Membership-based, provides advice and takes up issues with retailers on members' behalf.
- Citizens Advice Bureau (CAB): Free advice. 0800 367 222 or cab.org.nz
- Community Law Centres: Free legal advice for those under certain income thresholds.
🔢 Worked Examples and Real-World Stories
Example 1: Laptop Failure Within 2 Years, Warranty Expired
You paid $2,400 for a laptop at Harvey Norman. 12-month manufacturer warranty expired 7 months ago (so 19 months old). Screen died.
If retailer refuses: written complaint citing CGA, then Disputes Tribunal.
Example 2: Extended Warranty vs CGA
$1,800 TV. Offered 3-year "protection plan" at $299.
Example 3: Disputes Tribunal Cost-Benefit
Phone that cost $950 dead at 16 months. Retailer refuses anything.
Real-World Story: The $3,800 Fridge Win
Fisher & Paykel fridge, $3,800. Failed at 3 years, 2 months. Outside 2-year manufacturer warranty.
What Happened:
- Store (Noel Leeming) initially said warranty expired, nothing they could do
- Tim wrote a formal letter citing CGA and "reasonable durability" (a $3,800 fridge should last 10+ years)
- Store offered a partial discount on repair ($400)
- Tim declined, filed at Disputes Tribunal
- At hearing, Tribunal agreed 3 years was not reasonable durability for a premium fridge
- Awarded: free repair by store
Lesson: Price paid matters. A premium product is held to a premium durability standard. Manufacturer warranties are the floor, not the ceiling.
Real-World Story: The Liquidation Chargeback
Paid $1,200 deposit on custom furniture. Company went into liquidation before delivery.
What Happened:
- Furniture never delivered. Company owed money to many customers.
- As an unsecured creditor, Priya would get ~5 cents on the dollar (maybe $60)
- Priya had paid on her Visa credit card
- Raised a Visa chargeback through ASB for "goods not delivered"
- Bank investigated; furniture company couldn't prove delivery
- Full $1,200 refunded to her card within 14 days
Lesson: Pay by credit card (or Visa/Mastercard debit) for ANY significant purchase. Chargeback protection is a massive advantage when merchants go under or disappear.
Real-World Story: The "No Refund on Sale Items" Fight
Bought on-sale winter boots, $140. Sole fell off after 3 weeks of normal wear.
What Happened:
- Store refused refund, pointing to "SALE ITEMS - NO REFUNDS" sign
- Maya cited the CGA directly - "this rule doesn't apply to faulty goods"
- Shop manager still refused
- Maya escalated via written complaint to the chain's head office
- Head office immediately offered a full refund plus a $30 voucher
Lesson: Retail signs saying "no returns on sale items" are often unlawful when goods are faulty. The CGA applies regardless of whether an item was on sale. Head office is usually more aware of consumer law than store-level staff.
Real-World Story: The Disputes Tribunal Underdog
Bought a refurbished gaming console, $450. Stopped working after 5 weeks. 30-day retailer refund policy had lapsed.
What Happened:
- Retailer quoted their 30-day policy, refused
- Ryan filed Disputes Tribunal claim ($60 fee)
- Prepared: receipt, photos of fault, copy of emails with retailer, screenshot of console's broken state
- At hearing (30 minutes), referee asked about price, age of product, advertised condition
- Retailer argued "as-is" disclaimer - referee ruled that didn't override CGA for a functional failure
- Awarded: full refund $450 + the $60 filing fee = $510
Lesson: Retailer "return policies" are in ADDITION to CGA, not a replacement. If something fails within a reasonable time, CGA overrides the 30-day window. The Disputes Tribunal is designed exactly for these situations and works well for well-prepared claimants.
🎯 Test Your Knowledge
Quiz on NZ Consumer Rights