Pipiwharauroa

Tairāwhiti Community Law Centre

Our Rights when Returning Goods and seeking Refunds or Replacements

Here we are in 2023! Christmas is just a recent memory.

Now that we are over the seasonal gifting frenzy, we may realise that some of the things we have bought or received have not been fit for purpose. We either don’t like them, or they aren’t what we expected from the photos on the websites, or they came broken or were soon broken after we received them.

So, what can we do?

If we purchased an item from a private seller, either in person or online, we may have no guaranteed rights to seek a refund other than asking for one. When we buy privately, we are buying “as is”, the fact that we paid for it means we have agreed to accept it in its current state.

If we purchased a product from a trader (a retail shop or website such as Trade Me) that is faulty or not of acceptable quality, the Consumer Guarantees Act gives us powerful aftersales rights.

The Act says products must match their description, be of acceptable quality and fit for purpose. If a product has a minor fault, the retailer can choose to repair the item, replace it or refund our money.

If the fault is major, we can choose whether to opt for a replacement or refund. A major fault means a reasonable consumer would not have bought the product had they known about the fault.

We have the right to take the item back to the shop and have it fix the problem. The retailer cannot just fob us on to the manufacturer.

A sign put up by a retailer that says “No refunds or exchanges” is meaningless as we have full rights under the Act.

What if I no longer want it or I have just changed my mind?

We do not have the right to return goods just because we have changed our mind, or our circumstances have changed when there is no fault with the goods.

For example, we bought a smartphone. What if:

• Our partner bought us one as a surprise on the same day. Can we take one of them back?

• We really wanted a purple one. Can we swap?

• The same phone is $100 cheaper in the shop next door. Can we get a refund?

The answer to all these questions is “no”. The retailer is under no legal obligation to exchange the product or give us our money back. However, some retailers will do so in the interests of good customer service, so it is worth asking.

Some stores have a no-questions-asked exchange policy for customers who have changed their mind. This usually means we can swap for another item or a credit note. Occasionally, a store returns policy lets us get a refund, but it is up to the store.

Ask the retailer when you buy if it offers exchange cards or that you can get a refund. There are exceptions to this rule:

Credit Contracts

For example, if we buy a washing machine through a store finance deal. We have five working days to cancel the credit contract if we have second thoughts.

Door-to-door Sales

We also have five working days to cancel a door-to-door sale. We can cancel for any reason. The trader must give us a full refund if we cancel.

References:

Returns and refunds - know your rightsConsumer NZ Consumer Guarantees Act - know your rights - Consumer NZ

Gillian Creach General Manager