So I bought faulty goods or have been given a faulty service - what can I do?
If it is a Good you are unsatisfied with: and it can be fixed
Can I get anything else from the seller if there is a problem with the goods?
Can I get anything from the manufacturer if there is a problem with the goods?
If it is a Service you are unsatisfied with: and it can be fixed
If the problem can’t be fixed or is very serious -
Can I get anything else from the seller if there is a problem with the service?
Step 2 - Write a letter
Tips for writing letters:
Step 3 - Decide whether to take further action
Disputes Tribunals
Who will be present at a Disputes Tribunal hearing?
How do I apply for a hearing at the Disputes Tribunal?
Trade Associations
Commerce Commission
(a) Letter rejecting faulty goods.
(b) Letter asking for a repair.
(c) Letter when seller rejects your claim.
(d) Letter complaining about workmanship.
(e) Letter to a car dealer asking for repairs on used car.
Further Help


So I bought faulty goods or have been given a faulty service - what can I do?

Step 1 - Go back to the seller

You should go back to the seller of the good or service and discuss the problem as soon as possible, when you first notice the problem.

When you go back to the person who sold the goods to you, you should try to bring with you:

• receipts, proof of purchase, order forms, advertisements
• the faulty goods
• a friend as a witness and for support

It is a good idea to take a photo of faulty goods and make a photocopy of any receipts, order forms, etc. things so that if they get lost or the seller takes them from you, you will still have proof.

Tell the seller what you think the problem is.

Ask to speak to the manager if the person who sold it to you cannot help. The employees of a business may not have the authority to deal with complaints or give refunds. It may be necessary to contact their head office if the complaint is with the branch of a large office.
Remember to keep calm and be polite. (See “(a) Letter rejecting faulty goods” and “(b) Letter asking for repair” for ideas about what to say.)

If it is a Good you are unsatisfied with: and it can be fixed

1. Ask the seller to fix the problem. They can:

• repair the good (see “(b) Letter asking for repair”); or
• replace the good with an identical replacement (the same guarantees will apply); or
• if it isn’t reasonable to expect them to repair or replace the good, they can refund you the amount the good cost

2. If they won't fix it, don't respond, or don't fix it in a reasonable time, you can:

• Get someone else to fix it and then get the seller to pay for the repair (you may need to go to Disputes Tribunal to get the money for the repairs from the seller); or
• Reject the good and get your money back in full, or get a new good (of the same type and similar value) as a replacement (if available). (See “(a) Letter rejecting faulty goods”).

The supplier may offer you a credit note instead of a refund but you don't have to accept this. If you want a cash refund the shop must give it to you.

You must tell the supplier that you are rejecting the good and explain why. It is best to do this in writing. (See “(a) Letter rejecting faulty goods”).

You will need to return the good to them unless it will cost too much or it is too difficult to return. You may lose your right to reject the goods if you take too long to reject them or if they have been, disposed of, destroyed or damaged.

Whether you have taken too long to reject the good depends on how long it would usually take to work out if there was a problem, considering the type of good, and how often it would usually have to be used in order to find this out.

If it can’t be fixed or it has a very serious problem:

You can:

1. reject the good and get your money back, or a replacement (see above); or
2. seek damages. This is money compensation for the difference between what you paid for the good and what it is actually worth as a result of the problem.

Examples of very serious problems:

• A good that the usual consumer wouldn’t have bought if they’d known of the problem
• A good that differs a lot from its description or the sample on display.
• A good that is completely unfit for its purpose and can’t be fixed in a reasonable time to make it fit.
• An unsafe good.

Can I get anything else from the seller if there is a problem with the goods?

Yes. You can get compensation (money) for any extra loss you suffer because of the problem, such as if the goods damage something else you own. This compensation is called “consequential damages”. To get consequential damages you have to show that the loss must have been likely to occur from the problem.

Can I get anything from the manufacturer if there is a problem with the goods?

In some cases, you may have rights against the manufacturer. This is so where the problem is that the goods aren’t of acceptable quality, don’t match their description, spare parts and repair facilities aren’t available (as guaranteed under the Consumer Guarantees Act) or the goods don’t match the manufacturers warrantees. If this is the case, you can approach the manufacturer, instead of the seller, for a solution.

If it is a Service you are unsatisfied with: and it can be fixed

1. Ask the service provider to fix it within a reasonable time.
2. If they won’t fix it, don’t respond or don’t fix it within a reasonable amount of time you can:

• get someone else to fix it and then get the service provider to pay for that; or
• cancel the contract and get the money back for what the service has cost you. If the contract doesn’t say how you are to let the seller know you are cancelling the contract, you can write to them, tell them in person, or act in a way that makes it clear that it is cancelled.

The cancellation only takes effect when the service provider knows about it. If you can’t notify the seller the cancellation won’t take place until you have done something that shows them you want to cancel, such as sending a letter to them.

Remember that if the service is only a small part of a contract for the supply of goods, and you are able to reject the goods because of a breach of a guarantee that hasn’t been fixed, you can’t cancel the service contract.

If the problem can’t be fixed or is very serious

You can:

• cancel the contract (see above); or
• seek damages. This is to compensate you for the reduction in the value of the product of the service below what you paid for it or what you owe for it

Examples of very serious problems include:

• a service that the usual consumer wouldn’t have acquired if they had known of the problem
• a product or a service that is completely unfit for its purpose and can’t be fixed in a reasonable time
• an unsafe product of a service

Can I get anything else from the seller if there is a problem with the service?

Yes. You can get compensation (usually money) for any extra loss you suffer because of the problem. This compensation is called “consequential damages” and the loss must have been known to likely occur from the problem.

If you are not satisfied with the seller's response, you can decide whether to take it further.

Step 2 - Write a letter


You can write a letter to the seller outlining your issues with the seller.

Tips for writing letters:

1. Keep to the facts. Your personal opinions are not as important.

2. Letters should be brief but should include

• Details of purchase e.g. where and when goods or service purchased
• Details of the problem
• The remedy you would like (i.e. what you want from the seller to put the situation right, e.g. refund or repair)

3. Keep a copy of the letter.

4. You should send the letter by registered post. This costs more than normal post but it is proof that a letter has been sent. It is useful proof if you take this matter further e.g. to the Disputes Tribunal.

If you need someone to help you with writing the letter or want someone to write the letter for you, contact one of the organisations listed in “Further Help” at the back of this information sheet.

(See “(a) Letter rejecting faulty goods”, “(b) Letter asking for repair”, “(c) Letter when seller rejects your claim”,”(d) Letter complaining about workmanship” and “(e) Letter to a car dealer asking for repairs on used car” at the back of this info sheet).

NOTE: It is reasonable to expect a response or acknowledgment to a letter within 10 working days.

If you are not satisfied with the seller's response or if the seller has not replied to your letter, you can decide whether to take it further. See Step 3.

Step 3 - Decide whether to take further action

Negotiations with the seller might take a long time. You may decide that you have had enough and want to settle the problem finally. Any further action may involve you in legal proceedings that can cost time and money.

Here are some points that you might want to consider before taking further action:

1. The amount of money involved
2. How much it will cost you to take further action and whether you can afford this
3. How serious the fault or complaint is
4. How strong your case is. You should talk to someone about this, like your local Community Law Centre, a legal adviser at your local CAB, a lawyer or YouthLaw.
5. Whether the seller is likely to pay if you win the case If you do decide to take your case further, you can go to the

• Disputes Tribunal
• Traders Associations
• Commerce Commission

Disputes Tribunals

The Disputes Tribunal is not a court. Tribunal’s actions are heard in an informal manner. You present your case and the seller will do the same. The Disputes Tribunal referee will try to help both sides reach an agreed settlement. However, if no agreement can be reached, the referee can make an order.


To take Consumer Guarantees cases to the Disputes Tribunal, the claim must be for less than $7500.
It costs:

• $30.00 for a claim under $1000
• $50.00 for a claim between $1000 - $4999 · $100 for a claim between $5000 - $12000 If you win your case the seller can be ordered to pay the filing fee and any legal fees.

Who will be present at a Disputes Tribunal hearing?

1. A referee
2. The two parties to the dispute
3. Witnesses (if any)

Support people for each party are encouraged to accompany and attend. However you are not allowed to haverepresentation, whether from a lawyer or other advocate or representative. However, people aged under 20 and persons with disabilities can have representation with the approval of theTribunal. Possible outcomes You may be given:

• Compensation for loss or damage suffered by you
• Repairs to, or parts for, any faulty goods involved
• An order that you get a refund of money or property returned to you
• Free services to repair any damage done

NOTE: The decisions made by the referee are enforceable by the District Court, although they are made on the basis of “substantial merits and justice” rather than strict law.


How do I apply for a hearing at the Disputes Tribunal?

Complete the claim form. These are available from your local District Court, your local Community Law Centre and YouthLaw.
Make sure you include details of the goods supplied and the work done.

Send in the completed form with the application to the Disputes Tribunal. The address and phone number for your local tribunal is under "Justice Department" in the phone book.

Trade Associations

You can get a list of trade associations from either the New Zealand Direct Marketing Association or the Direct Selling Association of New Zealand (for contact information on these two organisations see the back of the info sheet) and make a complaint to the relevant trade association about the behaviour of the seller. They will investigate your complaint for you and take the relevant action if they think the seller did do something wrong. This is especially so for mail orders and door to door sales.

Commerce Commission

The Commerce Commission encourages complaints about the way a seller advertises its goods before the sale. If a seller does anything that is prohibited by the Fair Trading Act, you can make a complaint to the Commerce Commission so they are aware of situation. They don’t usually follow up particular complaints unless it is to do with something they are targeting at the time or it needs immediate action.

Draft letters

NOTE: These draft letters are taken from the website of the Consumers Institute.There is a link to The Consumers Institute with each lettertotake you to the relevant section on their website which contains lots of other useful information and suggestions.

(a) Letter rejecting faulty goods.

[Date]

Dear...
[Name the appliance, make and if possible the model]

I bought the above [item] from your shop on [date]. It developed serious defects.

[Describe problems].

I understand I am entitled to expect things I buy to be of acceptable quality. The [item] I bought does not reach this standard considering the problems I have had.

I am therefore asking for a refund of [amount] I paid for the [item] [or to replace the item with another in good working order].

A copy of my [receipt/guarantee] is enclosed.

I trust this matter can be resolved quickly and look forward to your early reply.

Yours sincerely (b) Letter asking for a repair.


[Date]


Dear....

[Name the appliance, make and if possible the model]

I bought the above [item] from your shop on [date]. It developed defects.

[Describe problems]

I understand I am entitled to expect the things I buy are of acceptable quality. I am sure you will agree that in view of the above problems the [item] was not of a reasonable standard.

I am prepared to accept a repair of the [item] at no extra cost to me. If repairs can be completed quickly and effectively I will consider the matter settled.

Please telephone me to arrange for the repair to be carried out. I consider seven days to be a fair time to have the [item] back in full working order.

Yours sincerely



(c) Letter when seller rejects your claim.

[Date]

Dear....

[Name the appliance, make and if possible the model]

Thank you for your letter dated [date] regarding my claim for a replacement [item] [or refund of the price of my faulty item].

Unfortunately I cannot accept your suggestion that I should complain to the manufacturer.

My contract is with you, the seller of the [item]. As a matter of law, I have an implied guarantee that the [item] is acceptable quality. This right is given to me under the Consumer Guarantees Act and I am therefore entitled to expect you to put the matter right.

My claim against you is in addition to any rights I have under the Manufacturer’s guarantee.

I trust this clarifies the position. Please let me know within five working days whether you intend to repair or replace the [item] [or give me a refund].

Yours sincerely

(d) Letter complaining about workmanship.

[Date]

Dear....
[Address and job number if there is one]

On [date] you carried out the following work for me. [Describe].

The work is unsatisfactory because [describe].

You have an obligation to carry out work you do with reasonable skill and to an acceptable standard. You have not met these legal requirements.

I am happy to give you 14 days to put the matter right but in the meantime I will be with holding the payment of your account.

Please contact me to arrange a convenient time to have the remedial work done.

Yours sincerely



(e)Letter to dealer asking for repairs on used car

[Date]

Dear ...


[Make, model and registration number of car]



On [date] I bought the above vehicle from you.



On [date] it developed a fault.



[Describe problems]


I understand I am entitled to expect the things I buy are of acceptable quality. I am sure you will agree that in view of the above problems the vehicle was not of a reasonable standard.



I am prepared to accept a repair of the vehicle at no cost to me. If repairs can be completed quickly and effectively I will consider the matter settled.


Please telephone me to arrange for the repair to be carried out. I consider seven days to be a fair time to have the vehicle back in full working order.



Yours sincerely


Further Help

Commerce Commission
PO Box 10522
Auckland
Phone (09) 377 3094

Ministry of Consumer Affairs
PO Box 1473
Wellington
Ph (04) 474 2750
Fax (04) 473 9400
Web site http://www.consumer-ministry.govt.nz
(The Ministry of Consumer Affairs no longer operates a general public advice line. Community agencies can phone them on their hot line to get help with client cases).



Consumers' Institute of New Zealand
Private Bag 6996
Wellington 6030
New Zealand
http://www.consumer.org.nz

Consumers' Institute is an independent, non-profit organisation established in 1959 with the sole aim of getting New Zealand consumers a fairer deal. The Consumers Institute relies on money raised through subscription fees for their operational expenses. They publish Consumer magazine and can provide great advice on Consumer issues

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By Phone/fax
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Phone: (04) 384 7963
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New Zealand Direct Marketing Association
PO Box 47 681
Ponsonby
Auckland
Telephone: (09) 303 9470
Fax: (09) 303 4787
0800 222 332

Direct Selling Association of New Zealand
Ph: (09) 367 0935
Fax: (09) 367 0914
Email: dsanz@dsanz.co.nz