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Fair Trading Act 1986

Consumer transactions and auctions - Uninvited direct sales

36R: Compensation on cancellation of uninvited direct sale agreement

You could also call this:

“Money rules when you cancel a surprise door-to-door sale”

When you cancel an uninvited direct sale agreement, you might need to pay the seller for any damage to the goods while they were with you. However, you don’t have to pay for normal wear and tear or for damage that wasn’t your fault.

You’re only responsible for the goods from when you get them until 10 working days after you cancel the agreement. Or, if the seller hasn’t picked up the goods yet, you’re responsible until you give them a fair chance to collect them.

If the seller provided any services before you cancelled, they can’t charge you for those services. If those services changed or damaged your property, the seller must fix it at their own cost if you ask them to.

The seller can’t ask you for any other compensation or use any other way to get money from you when you cancel an uninvited direct sale agreement. They can only get what this law allows.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156646.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36Q: Consumer's obligations on cancellation of uninvited direct sale agreement, or

“What you need to do when you cancel a sale from a door-to-door salesperson”

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36RA: Directions to leave premises or not enter premises, or

“Rules for telling uninvited sellers to leave your home or stay away”

Part 4A Consumer transactions and auctions
Uninvited direct sales

36RCompensation on cancellation of uninvited direct sale agreement

  1. On cancellation of an uninvited direct sale agreement under section 36M, the consumer is liable to pay compensation to the supplier for any loss of, or damage to, the goods that occurs while they are in the custody of the consumer, other than loss or damage—

  2. arising from the normal use of the goods; or
    1. owing to circumstances beyond the consumer's control.

      1. Subsection (1) applies only in relation to the period of custody beginning when the consumer takes delivery of the goods and ending—

      2. at the end of 10 working days after the date on which notice was given in accordance with section 36M; or
        1. if section 36Q(2) applies, when the consumer has given the supplier a reasonable opportunity to take possession of the goods.

          1. If a supplier provided services under the agreement before it was cancelled,—

          2. the supplier is not entitled to any compensation for those services; and
            1. if the services have resulted in the alteration of, or damage to, the consumer's property, the supplier must, if required by the consumer and at the supplier's expense, return the property to the condition it was in (or as close as is reasonably practicable to that condition) immediately before the services were provided.

              1. A supplier is not entitled to damages, or to enforce any other remedy, in relation to the cancellation of an uninvited direct sale agreement under section 36M, except as provided for in this section.

              Notes
              • Section 36R: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).