Fair Trading Act 1986

Consumer transactions and auctions - Extended warranties

36U: Disclosure requirements relating to extended warranty agreements

You could also call this:

“Rules for sellers when offering extended warranties”

When you buy an extended warranty, the person selling it to you (called a warrantor) must follow certain rules. They need to give you a written agreement that’s easy to read and understand. This agreement must include important information on its front page. This information includes how the extended warranty compares to your rights under the Consumer Guarantees Act 1993, a summary of your rights under that Act, and how you can cancel the agreement.

The agreement must also contain all the terms and conditions, including what you and the warrantor must do, how long the warranty lasts, and when it ends. It needs to show the total price you’ll pay and must be dated.

The warrantor should also tell you verbally, if possible, that you have the right to cancel the agreement within 5 working days after you get a copy of it. They should explain how you can cancel it too.

If you make the agreement over the phone, the warrantor must send you a copy within 5 working days after you agree to it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156655.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading

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36T: Meaning of extended warranty agreement and related definitions, or

“What is an extended warranty and who can offer it when you buy something?”


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36V: Cancellation of extended warranty agreement, or

“How to cancel an extended warranty and get your money back”

Part 4A Consumer transactions and auctions
Extended warranties

36UDisclosure requirements relating to extended warranty agreements

  1. A warrantor must ensure that—

  2. every extended warranty agreement—
    1. is in writing; and
      1. is expressed in plain language; and
        1. is legible; and
          1. is presented clearly; and
            1. complies with the requirements of subsection (2); and
            2. a copy of the agreement is given to the consumer—
              1. at the time the agreement is entered into; or
                1. in the case of an agreement entered into over the telephone, within 5 working days after the date on which the agreement was entered into.
                2. The requirements referred to in subsection (1)(a)(v) are that—

                3. the following information is set out on the front page of the agreement:
                  1. a summarised comparison between the relevant Consumer Guarantees Act 1993 guarantees and the protections provided by the extended warranty agreement; and
                    1. a summary of the consumer's rights and remedies under the Consumer Guarantees Act 1993; and
                      1. a summary of the consumer's right to cancel the agreement under section 36V; and
                        1. the warrantor's name, street address, telephone number, and email address; and
                        2. all the terms and conditions of the agreement are included in the agreement, including—
                          1. the rights and obligations of the warrantor and the consumer; and
                            1. the duration and expiry date of the agreement (including whether or not the agreement expires when a claim is made); and
                            2. the total price payable under the agreement is disclosed in the agreement; and
                              1. the agreement is dated.
                                1. In addition to the requirements for written disclosure under subsections (1) and (2), the warrantor must, where reasonably practicable (for example, where the agreement is entered into between a warrantor and consumer in each other's presence or by telephone), give the consumer oral notice, before the agreement is entered into, of—

                                2. the consumer's right to cancel the agreement within 5 working days after the date on which the consumer receives a copy of the agreement; and
                                  1. how the consumer may cancel the agreement.
                                    Notes
                                    • Section 36U: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
                                    • Section 36U(1)(b): replaced, on , by section 10(1) of the Fair Trading Amendment Act 2021 (2021 No 32).
                                    • Section 36U(3)(a): amended, on , by section 10(2) of the Fair Trading Amendment Act 2021 (2021 No 32).