Plain language law

New Zealand law explained for everyone

Consumer Guarantees Act 1993

Supply of services

31: Guarantee as to price

You could also call this:

“A fair price guarantee for services when the price isn't already set”

When you get services, you have a guarantee about the price. This guarantee means you don’t have to pay more than a fair price for the service. But this only applies when the price isn’t already set in your agreement with the service provider.

There are three ways the price might already be set:

  1. The contract clearly states the price.
  2. The contract explains how the price will be decided.
  3. You and the service provider have a usual way of setting the price based on your past dealings.

If none of these apply and you think you’re being charged too much, you have the right to refuse to pay more than what’s reasonable. This is your only option in this situation - you can’t ask for anything else.

Remember, there are some exceptions to this rule, which are explained in section 41 of this law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM312842.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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30: Guarantee as to time of completion, or

“Services must be finished on time”

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32: Options of consumers where services do not comply with guarantees, or

“What you can do if a service doesn't meet the promises made to you”

Part 4 Supply of services

31Guarantee as to price

  1. Subject to section 41, where services are supplied to a consumer there is a guarantee that the consumer is not liable to pay to the supplier more than a reasonable price for the service in any case where the price for the service is not—

  2. determined by the contract; nor
    1. left to be determined in a manner agreed by the contract; nor
      1. left to be determined by the course of dealing between the parties.

        1. Where there is a failure to comply with the guarantee in this section, the consumer's right of redress is to refuse to pay more than a reasonable price.

        2. Nothing in this Part confers any other right of redress.

        Compare
        • 1908 No 168 s 10
        • Supply of Goods and Services Act 1982 s 15 (UK)