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Consumer Guarantees Act 1993

Right of redress against manufacturers in respect of supply of goods - Remedies

27: Options against manufacturers where goods do not comply with guarantees

You could also call this:

“What you can do if something you bought doesn't work properly”

If you buy something and it doesn’t work as promised, you might be able to get money from the company that made it. This is called ‘damages’. You can get this money for two reasons. First, if the item is worth less than what you paid for it because of the problem. Second, if you had any other losses that you could expect to happen because of the problem.

If the company that made the item promised to fix it or replace it if something went wrong, you need to ask them to do that first. You can only ask for money if the company refuses to fix it, takes too long to fix it, or can’t fix it properly.

It’s important to know that this law doesn’t apply to everyone who gets the item from you. It only applies to people who are considered ‘consumers’ according to the definition in section 2 of this law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM312837.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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26: Exceptions to right of redress against manufacturers, or

“When you can't ask the maker to fix a faulty product”

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28: Guarantee as to reasonable care and skill, or

“Services must be done carefully and properly”

Part 3 Right of redress against manufacturers in respect of supply of goods
Remedies

27Options against manufacturers where goods do not comply with guarantees

  1. Subject to subsection (3), where a consumer has a right of redress against a manufacturer in accordance with this Part, the consumer, or any person who acquires the goods from or through the consumer, may obtain damages from the manufacturer—

  2. subject to subsection (2), for any reduction in the value of the goods resulting from the failure—whichever price is lower:
    1. below the price paid or payable by the consumer for the goods; or
      1. below the average retail price of the goods at the time of supply,—
      2. for any loss or damage to the consumer or that other person resulting from the failure (other than loss or damage through a reduction in value of the goods) which was reasonably foreseeable as liable to result from the failure.

        1. Subject to subsection (3), where the consumer, or any person who acquires the goods from or through the consumer, is entitled by an express guarantee given by the manufacturer to require the manufacturer to remedy the failure by—

        2. repairing the goods; or
          1. replacing the goods with goods of identical type,—
              1. no action shall be commenced under subsection (1)(a) unless the consumer or that other person has required the manufacturer to remedy the failure and the manufacturer—
            1. has either refused or neglected to remedy the failure; or
              1. has not succeeded in remedying the failure within a reasonable time.

                1. This section shall not apply to any person who acquires goods from or through a consumer unless that person comes within the terms of paragraph (b) of the definition of consumer in section 2.