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Fair Trading Act 1986

Consumer transactions and auctions - Extended warranties

36V: Cancellation of extended warranty agreement

You could also call this:

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

You can cancel an extended warranty agreement by telling the warrantor within 5 working days after you get a copy of the agreement. You can also cancel at any time if the warrantor didn’t follow the rules in section 36U, unless their mistake was small and didn’t really affect you.

If the extended warranty is part of a consumer credit contract, you can’t cancel it using these rules.

You can cancel the agreement in any way that shows you want to cancel, like talking or writing to the warrantor. When you cancel, use the contact details the warrantor gave you or any other way you both agreed on.

If you cancel, the supplier must give you back all your money right away, without taking anything out.

Remember, cancelling the extended warranty doesn’t mean you can cancel other agreements about the same goods or services.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156656.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36U: Disclosure requirements relating to extended warranty agreements, or

“Rules for sellers when offering extended warranties”

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36W: Regulations, or

“Rules about extended warranties can be made by the Governor-General”

Part 4A Consumer transactions and auctions
Extended warranties

36VCancellation of extended warranty agreement

  1. A consumer may cancel an extended warranty agreement by giving notice of the cancellation to the warrantor—

  2. within 5 working days after the date on which the consumer receives a copy of the agreement; or
    1. if the warrantor has failed to comply with section 36U (except to the extent provided for in subsection (2)(b)), at any time.

      1. However,—

      2. subsection (1) does not apply in relation to an extended warranty agreement that has been entered into as a condition of a consumer credit contract (as defined in section 11 of the Credit Contracts and Consumer Finance Act 2003); and
        1. subsection (1)(b) does not apply if the failure to comply with section 36U is minor (for example, where a warrantor has provided an agreement at a time later than the time specified in section 36U(1)(b)) and does not materially prejudice the consumer.

          1. Notice of cancellation may be expressed in any way (including oral or written) that shows the intention of the consumer to cancel or withdraw from the agreement.

          2. For the purposes of subsection (3), the consumer must communicate with the warrantor—

          3. by way of the contact details provided in accordance with section 36U(2)(a)(iv); or
            1. in any other way agreed to by the consumer and the warrantor.

              1. On cancellation of an agreement in accordance with subsections (1) to (3), the supplier must immediately repay all additional consideration, in full and without any deductions, to the consumer.

              2. To avoid doubt, nothing in this section entitles a consumer to cancel any other agreement relating to the goods or services that are the subject of the extended warranty agreement.

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