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Consumer Protection
Your Rights goods and services:
Goods: Your Rights
The Consumer Guarantees Act 1993
Sale of Goods Act 1908
Seller's Contracts and Manufacturer's Guarantees
Services: Your Rights
The Consumer Guarantees Act 1993
Hire Purchase
Layby
Door-to-Door Sales
Mail Order, Internet & Home Shopping
So what are my rights if I want to buy this way?
Your Rights- goods and services:
When you buy a good or a service, you must be given the correct information about the good or service. The Fair Trading Act 1986 prevents sellers from ripping you off.
You can complain against the seller if you are given any false or misleading information on the labelling or packaging:
Examples of this include:
For what you can do if this happens to you see So I bought faulty goods or have been given a faulty service - what can I do?. You can also complain to the Commerce Commission about the seller.
Goods: Your Rights
Gives you guarantees or promises about goods or services you have bought for your own household or personal use from someone who usually provides goods and services to the public as part of their business. You are still covered if you receive the goods as a gift from someone who got them from such a seller or if they are on a hire purchase, lease, hire or exchange.
These guarantees are implied guarantees - they are implied by the Consumer Guarantees Act 1993. If any of these guarantees are broken by the seller, you have rights against the seller and in some cases the manufacturer. This Act applies to both new and second-hand goods.
You should remember that no matter what is in the contract, the seller can't get out these guarantees by saying that they don't apply to the goods they sold.
Under the Consumer Guarantees Act the seller guarantees that:
So what do each of these mean?
1. The seller can give good title to the good.
This means that the seller has the right to sell the good (e.g. the goods aren't stolen) and the goods aren't security for a loan.
2. The good is of 'acceptable quality'
That means that the goods are:
Ask yourself:
If the goods are not of acceptable quality, you have rights against the seller or manufacturer of the goods.
3. The good is fit for a particular purpose
When you buy a good, if you made it clear to the seller that you want the good to be used for a particular purpose, e.g. painting a bike, or if the seller states what kinds of purposes the good is fit for, the good must then be fit for those purposes.
4. The good is the same as its description
When you buy a good, it must be the same as its description. For example, if you buy a '100% wool jumper', the jumper must be made of 100% wool. If goods are incorrectly described by the seller in any advertisements, packaging or labels, you have rights against the seller.
5. The good matches any sample or demonstration model
If you buy a good such as a stereo after seeing a sample or demonstration model, the good that you finally get must be the same as the sample. If the goods are not the same, you may have rights against the seller.
6. If no agreement has been made about the price, the price must be reasonable
If you haven't been told what the price is or how it will be worked out and you haven't already paid for the good, you only need to pay what is reasonable. Usually, however, the price has already been agreed to on a price tag or label, on a sign displayed with the good, or in a contract. It is also taken as agreed to if you have already paid for it.
A reasonable price is what other sellers are charging for similar goods. For example, you order a new suit without the price having been sorted out beforehand. When the suit is delivered, you find that the tailor charges you a price that is twice that of a similar suit made by another tailor. You can refuse to pay more than half the bill.
Spare parts and repairs.
The manufacturer or the seller (usually the importer or distributor) guarantees reasonable access to spare parts and repairs for goods made overseas. Manufacturers can supply parts and repairs themselves or make sure that parts and repairs are available through other traders. If they inform you when you buy the good in writing that parts or repairs may be limited or unavailable, they don't have to meet this guarantee.
(For what you can do if the good is faulty because the seller has broken any of these guarantees see So I bought faulty goods or have been given a faulty service - what can I do?)
Other Sources of Protection Sale of Goods Act 1908
Another source of protection comes from the Sale of Goods Act 1908. It provides the same kind of guarantees that the Consumer Guarantees Act 1993 provides, but does not apply to services.
It gives you protection if you are buying goods in a private sale, an auction, on tender or in some cases from charity.
If you are buying goods for personal or household use this Act is unlikely to cover you. It is important to remember that the guarantees given to you under the Sale of Goods Act won't exist if the contract you make with the seller says something different about them.
Seller's Contracts and Manufacturer's Guarantees
Often on top of the guarantees provided by the law there are terms in the sale contract or guarantees or warranties from the manufacturer.
In the sale contract for example, there are usually terms about price or time and place of delivery. If any of the terms are breached, you can get remedies for breach of contract. If you are not sure about what the terms of the contract mean, you should ask some who would know, such as a legal adviser at your local CAB, Community Law Centre or YouthLaw.
A guarantee from the manufacturer is a guarantee about the performance of goods and what the manufacturer will do if the goods are faulty.
Services: Your Rights
When you buy a service, you are covered by implied guarantees under the Consumer Guarantees Act 1993. The kinds of service include trade and professional services (builders, car repairers, accountants, lawyers, doctors, etc), contract for loans, contracts for accommodation and insurance contracts. You should remember that no matter what is in the contract, the service provider can't get out of the guarantees in the Act by saying that the guarantees in the Act don't apply to the services they sell.
Under the Consumer Guarantees Act, the seller guarantees that:
1. The Service will be carried out with reasonable care and skill
What is reasonable can be worked out by looking at the care and skill used by other similar service providers doing the same work.
For example, you hire someone to paint your house but after painting, the paint peels off because he / she was careless. You will have rights against the painter. Another example would be if a hairdresser completely messes up your haircut when other hairdressers wouldn't have.
2. The Service will be fit for any particular purpose.
The service that you buy must achieve the result that you have asked for. This means the service must do what the seller says it will do and it will be fit for any purpose you've made known to the seller before sale.
3. The Service will be completed within a reasonable time
A reasonable time is the average time other similar service providers would take to do the same job. For example, you take your car to the garage to be serviced and 10 days later, the garage still has not completed the job. If other garages say that the job should only take a few hours, the garage has breached this guarantee.
This guarantee, however, only applies where there is no agreement between you and the service provider about how long the job will take. If you and the service provider have discussed when the work will be done or written a date for completion in a quote or contract, then that date will apply and you have no rights under this guarantee.
4. The price charged for the service must be reasonable.
A reasonable price is what other similar service providers charge for the same work. When working out what is reasonable, you will have to take into account the skill and experience of the provider.
This guarantee only covers you if you haven't already agreed to the price. Usually, however you will have agreed to the price because the service provider will have discussed the cost or the way of working out the price or put it in the written contract or quote. If you've already paid for the service you have also agreed to the price.
(For what you can do if the service you are provided with is faulty because the service provider has broken any of these guarantees see So I bought faulty goods or have been given a faulty service - what can I do?)
Often on top of the guarantees provided by the law, there are terms in a service contract. For example, in the contract there are usually terms about price, completion date and work to be done. If any of the terms are breached, you can get remedies for breach of contract. If you are not sure what the terms mean, you should ask someone who knows, such as a legal adviser at your local CAB or Community Law Centre, or YouthLaw.
Hire Purchase/Finance Agreements
When you buy goods on hire purchase or enter into a contract for finance so that you can purchase a good, you have rights under the Credit Contracts and Consumer Finance Act 2003.
When you enter into a hire purchase contract or a finance agreement, the Act requires that the creditor (the seller or finance company providing you with the finance for the good)must provide you (the debtor)initial disclosure of all the key information relating to the transaction. This includes:
The Act also gives you the right to cancel a hire purchase or finance agreementwithin 3 working days after you receive the initial disclosure from the creditor.You should give the creditora written notice of cancellation. The creditor must return to you any property they have received from you or repay any interest, fees or charges that you have had to pay. You must return the goods if you have taken possession of them. You can also be held to payintereston the unpaid balancefor the periodwhich credit was provided andfor the reasonable expenses necessarily incurred by the creditorin connection with the contract and its cancellation.
Hire purchase and finance agreements are complicated and it is very important that you know exactly what you are getting yourself until before signing. If you are unsure,get some advice from an experienced adult, CAB, or community law centre first, before agreeing to anything.
What else?
Like other agreements, if the terms of the hire purchase or finance agreement are really harsh or unfair, or you were tricked into signing it, you can take action to remedy the situation. If you think this is or might be the case, get some legal advice from a community law centre, lawyer or CAB.
As well as guarantees as to the quality, life, etc of the goods, you also have the right to pay the hire purchase or finance agreementoff early, at any time. You have the right to return the goods at any time if the contract says you can or the seller agrees.
Remember, if you find it too difficult to continue paying the instalments you can contact the HP or finance company and ask to change the amount of the repayments.
Alternatively, with hire purchase arrangements,you could ask for the HP company's permission to find a buyer for the goods. This means that you can try to get a good price for the goods rather than leaving it for the HP company to sell them. Usually it is not recommended to return the goods to the HP company until you've considered all other options. Usually you pay a deposit when you agree to the hire purchase contract. The larger the deposit, the lower your instalments will be and vice versa.
You should remember that buying goods by hire purchaseor through finance agreementis much more expensive in the long run. You pay a higher price for the goods. You might want to think about the following instead:
Layby
A layby is an agreement with a seller where you pay a deposit to have goods held on your behalf. You can't receive the goods until you pay the supplier the total purchase price.
You usually pay the total purchase price in instalments over a period of time agreed to by you and the seller.
You can cancel a layby agreement to purchase at anytime and for any reason. You will have to inform the seller verbally or in writing. However, you can't cancel a layby if the goods cost less than $5.
If you cancel the layby, the seller must give you a cash refund of how much you have paid if you demand it. It doesn't matter if they have a sign saying something different to this. You don't have to accept a credit instead (where the seller says you can buy something else in the shop up to the amount you have already paid).
The seller, however:
The seller can cancel the agreement if you don't pay the instalments within the agreed amount of time. The seller must advise you the layby is being cancelled and give you say a week to come up with the rest of the money. If you don't, they can put the goods back out for sale and must give you a full refund.
You are entitled to a statement once a month if you pay for them to post it to you. However, it is just as easy to get a receipt every time you make a payment.
The total price must be the price the goods were originally selling for at the time of the layby (plus storage costs). The seller can't put the price up if new stock of the good is at a higher price.
Sometimes you might have to pay a deposit. The general rule is that you don't get your deposit back if the deal doesn't go through. You can get back your deposit if the seller fails to meet their side of the deal or you discussed it with the seller beforehand and they agreed that the deposit would be refunded.
If the seller goes bankrupt while your goods are on layby, you can:
If you collect the goods and they are faulty you have the right to a refund or a replacement or repair depending on how serious the fault is (see 'so I bought faulty goods, What can I do'?).
If you go to collect the goods and the seller hasn't kept the goods on layby for you, you can demand a replacement or full refund of the money you have paid. You can also claim any increase in price you may have to pay at another shop to get similar goods.
Door-to-Door Sales
A Door-to-Door sale is when the seller approaches you at home to sell his / her goods or services. They might phone you to make an appointment or just come by the door. You have rights under the Door to Door Sales Act when you buy goods or services this way. However the following must apply before you are protected by the Act:
The salesperson must be uninvited. If the seller rings you and arranges a time to come around, it is still considered "uninvited". If you call the salesperson and invited him/her to your house, it is considered to be 'invited' and you do not have rights under this Act.
You must have received a written contract which both you and the seller have signed. It must show the seller's name and address as well as the full cost of the agreement.
The agreement you signed must tell you about your right to cancel and give you an official 'notice of cancellation' that you can use if you decide to cancel.
NOTE: The above requirements do not apply to:
If your door to door sale is covered by the Act and you change your mind and decide you don't want the item you have agreed to buy, you can get out of the contract. There is a 'cooling off' period for 7 days from the date of the agreement. During this period you can cancel the contract and you don't have to give a reason.
To cancel a door to door sale you need to:
You might have seen them before on TV ' the steak knives and the exercise equipment infomercials ' on sale. This is called home shopping. Internet shopping is becoming popular too. You might also be getting catalogues sent to your house that you can order goods and services from.
Basically, the same rules apply to these goods that apply to buying goods in a shop. But be careful. There are a lot of extra things you have to watch out for:
Before you buy something by home shopping, you should check this list:
You can return the goods if:
Remember that, if you buy from a company based overseas you are not covered by New Zealand's consumer laws, but by that country's consumer laws. Beware that enforcement across borders is difficult, and seeking redress can be costly.
It is common for mail order advertisements to offer you a trial period e.g. '21 days free or your money back!' You are entitled to return the good at any time within the stated period. You do not have to give a reason for returning the goods. But, watch out! Although you don't have to pay for the goods, you do have to pay for the postage and packaging, which can be very expensive if the thing you ordered is large, such as an exercise machine.
If you do not get the goods that you ordered and the seller has cashed your cheque, you can:
The New Zealand Direct Marketing Association inspects and approves mail order companies. If a seller is awarded their 'Seal of Approval', it means that the seller will notify you of any delays in delivery, process exchanges and refunds quickly and abide by the NZ Direct Marketing Association's code of ethics.
For more information, contact
New Zealand Direct Marketing Association
PO Box 47 681
Ponsonby
Auckland
Telephone: (09) 303 9470 or 0800 222 332
Fax: (09) 303 4787
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)
.
Direct Selling Association of New Zealand
Ph: (09) 367 0935
Fax: (09) 367 0914
Email: dsanz@dsanz.co.nz
Website: www.webnz.co.nz/dsanz
Goods: Your Rights
The Consumer Guarantees Act 1993
Sale of Goods Act 1908
Seller's Contracts and Manufacturer's Guarantees
Services: Your Rights
The Consumer Guarantees Act 1993
Hire Purchase
Layby
Door-to-Door Sales
Mail Order, Internet & Home Shopping
So what are my rights if I want to buy this way?
Your Rights- goods and services:
When you buy a good or a service, you must be given the correct information about the good or service. The Fair Trading Act 1986 prevents sellers from ripping you off.
You can complain against the seller if you are given any false or misleading information on the labelling or packaging:
- in any advertising
- by words or conduct at any time before the sale
- about your rights or guarantees
- or you are harassed or tricked into buying the goods.
Examples of this include:
- goods packaged in a way which gives a misleading idea about their size,
- goods made elsewhere sold as 'Made in New Zealand', and
- goods said to be sold with a 3 months warranty which is not honoured.
For what you can do if this happens to you see So I bought faulty goods or have been given a faulty service - what can I do?. You can also complain to the Commerce Commission about the seller.
The Consumer Guarantees Act 1993
Gives you guarantees or promises about goods or services you have bought for your own household or personal use from someone who usually provides goods and services to the public as part of their business. You are still covered if you receive the goods as a gift from someone who got them from such a seller or if they are on a hire purchase, lease, hire or exchange.
These guarantees are implied guarantees - they are implied by the Consumer Guarantees Act 1993. If any of these guarantees are broken by the seller, you have rights against the seller and in some cases the manufacturer. This Act applies to both new and second-hand goods.
You should remember that no matter what is in the contract, the seller can't get out these guarantees by saying that they don't apply to the goods they sold.
Under the Consumer Guarantees Act the seller guarantees that:
- The seller can give good title to the good
- The good is of 'acceptable quality'
- The good is fit for a particular purpose
- The good is the same as its description
- The good matches any sample or demonstration model
- If no agreement has been made about the price, the price will be reasonable
So what do each of these mean?
1. The seller can give good title to the good.
This means that the seller has the right to sell the good (e.g. the goods aren't stolen) and the goods aren't security for a loan.
2. The good is of 'acceptable quality'
That means that the goods are:
- Acceptable in appearance and finish
- Free from minor faults or defects
- Durable
- Safe to use
- Fit for all the purposes goods of that kind are normally used for
Ask yourself:
- What would a reasonable buyer think was an acceptable quality for these goods?
- What would a reasonable buyer expect if they had paid this price?
- What statements were made about the quality or condition of the goods? (on packaging and labels or by the seller)
If the goods are not of acceptable quality, you have rights against the seller or manufacturer of the goods.
3. The good is fit for a particular purpose
When you buy a good, if you made it clear to the seller that you want the good to be used for a particular purpose, e.g. painting a bike, or if the seller states what kinds of purposes the good is fit for, the good must then be fit for those purposes.
4. The good is the same as its description
When you buy a good, it must be the same as its description. For example, if you buy a '100% wool jumper', the jumper must be made of 100% wool. If goods are incorrectly described by the seller in any advertisements, packaging or labels, you have rights against the seller.
5. The good matches any sample or demonstration model
If you buy a good such as a stereo after seeing a sample or demonstration model, the good that you finally get must be the same as the sample. If the goods are not the same, you may have rights against the seller.
6. If no agreement has been made about the price, the price must be reasonable
If you haven't been told what the price is or how it will be worked out and you haven't already paid for the good, you only need to pay what is reasonable. Usually, however, the price has already been agreed to on a price tag or label, on a sign displayed with the good, or in a contract. It is also taken as agreed to if you have already paid for it.
A reasonable price is what other sellers are charging for similar goods. For example, you order a new suit without the price having been sorted out beforehand. When the suit is delivered, you find that the tailor charges you a price that is twice that of a similar suit made by another tailor. You can refuse to pay more than half the bill.
Spare parts and repairs.
The manufacturer or the seller (usually the importer or distributor) guarantees reasonable access to spare parts and repairs for goods made overseas. Manufacturers can supply parts and repairs themselves or make sure that parts and repairs are available through other traders. If they inform you when you buy the good in writing that parts or repairs may be limited or unavailable, they don't have to meet this guarantee.
(For what you can do if the good is faulty because the seller has broken any of these guarantees see So I bought faulty goods or have been given a faulty service - what can I do?)
Other Sources of Protection Sale of Goods Act 1908
Another source of protection comes from the Sale of Goods Act 1908. It provides the same kind of guarantees that the Consumer Guarantees Act 1993 provides, but does not apply to services.
It gives you protection if you are buying goods in a private sale, an auction, on tender or in some cases from charity.
If you are buying goods for personal or household use this Act is unlikely to cover you. It is important to remember that the guarantees given to you under the Sale of Goods Act won't exist if the contract you make with the seller says something different about them.
Seller's Contracts and Manufacturer's Guarantees
Often on top of the guarantees provided by the law there are terms in the sale contract or guarantees or warranties from the manufacturer.
In the sale contract for example, there are usually terms about price or time and place of delivery. If any of the terms are breached, you can get remedies for breach of contract. If you are not sure about what the terms of the contract mean, you should ask some who would know, such as a legal adviser at your local CAB, Community Law Centre or YouthLaw.
A guarantee from the manufacturer is a guarantee about the performance of goods and what the manufacturer will do if the goods are faulty.
Services: Your Rights
The Consumer Guarantees Act 1993
When you buy a service, you are covered by implied guarantees under the Consumer Guarantees Act 1993. The kinds of service include trade and professional services (builders, car repairers, accountants, lawyers, doctors, etc), contract for loans, contracts for accommodation and insurance contracts. You should remember that no matter what is in the contract, the service provider can't get out of the guarantees in the Act by saying that the guarantees in the Act don't apply to the services they sell.
Under the Consumer Guarantees Act, the seller guarantees that:
- The service will be carried out with reasonable care and skill
- The service will be fit for any particular purpose
- If no agreement has been made about time for completion, the service will be completed within a reasonable time
- If no agreement has been made about price, the price will be reasonable.
1. The Service will be carried out with reasonable care and skill
What is reasonable can be worked out by looking at the care and skill used by other similar service providers doing the same work.
For example, you hire someone to paint your house but after painting, the paint peels off because he / she was careless. You will have rights against the painter. Another example would be if a hairdresser completely messes up your haircut when other hairdressers wouldn't have.
2. The Service will be fit for any particular purpose.
The service that you buy must achieve the result that you have asked for. This means the service must do what the seller says it will do and it will be fit for any purpose you've made known to the seller before sale.
3. The Service will be completed within a reasonable time
A reasonable time is the average time other similar service providers would take to do the same job. For example, you take your car to the garage to be serviced and 10 days later, the garage still has not completed the job. If other garages say that the job should only take a few hours, the garage has breached this guarantee.
This guarantee, however, only applies where there is no agreement between you and the service provider about how long the job will take. If you and the service provider have discussed when the work will be done or written a date for completion in a quote or contract, then that date will apply and you have no rights under this guarantee.
4. The price charged for the service must be reasonable.
A reasonable price is what other similar service providers charge for the same work. When working out what is reasonable, you will have to take into account the skill and experience of the provider.
This guarantee only covers you if you haven't already agreed to the price. Usually, however you will have agreed to the price because the service provider will have discussed the cost or the way of working out the price or put it in the written contract or quote. If you've already paid for the service you have also agreed to the price.
(For what you can do if the service you are provided with is faulty because the service provider has broken any of these guarantees see So I bought faulty goods or have been given a faulty service - what can I do?)
Often on top of the guarantees provided by the law, there are terms in a service contract. For example, in the contract there are usually terms about price, completion date and work to be done. If any of the terms are breached, you can get remedies for breach of contract. If you are not sure what the terms mean, you should ask someone who knows, such as a legal adviser at your local CAB or Community Law Centre, or YouthLaw.
Hire Purchase/Finance Agreements
When you buy goods on hire purchase or enter into a contract for finance so that you can purchase a good, you have rights under the Credit Contracts and Consumer Finance Act 2003.
When you enter into a hire purchase contract or a finance agreement, the Act requires that the creditor (the seller or finance company providing you with the finance for the good)must provide you (the debtor)initial disclosure of all the key information relating to the transaction. This includes:
- the name and contact address of the creditor,
- the initial unpaid balance,
- subsequent advances of credit
- the total advance of credit,
- the credit limit,
- the annual interest rate,
- the method of charging interest,
- the total interest charges
- credit fees and charges
- payments required
- prepayments required
- security interests
- default interest charges and default fees
- debtor's right of cancellation
The Act also gives you the right to cancel a hire purchase or finance agreementwithin 3 working days after you receive the initial disclosure from the creditor.You should give the creditora written notice of cancellation. The creditor must return to you any property they have received from you or repay any interest, fees or charges that you have had to pay. You must return the goods if you have taken possession of them. You can also be held to payintereston the unpaid balancefor the periodwhich credit was provided andfor the reasonable expenses necessarily incurred by the creditorin connection with the contract and its cancellation.
Hire purchase and finance agreements are complicated and it is very important that you know exactly what you are getting yourself until before signing. If you are unsure,get some advice from an experienced adult, CAB, or community law centre first, before agreeing to anything.
What else?
Like other agreements, if the terms of the hire purchase or finance agreement are really harsh or unfair, or you were tricked into signing it, you can take action to remedy the situation. If you think this is or might be the case, get some legal advice from a community law centre, lawyer or CAB.
As well as guarantees as to the quality, life, etc of the goods, you also have the right to pay the hire purchase or finance agreementoff early, at any time. You have the right to return the goods at any time if the contract says you can or the seller agrees.
Remember, if you find it too difficult to continue paying the instalments you can contact the HP or finance company and ask to change the amount of the repayments.
Alternatively, with hire purchase arrangements,you could ask for the HP company's permission to find a buyer for the goods. This means that you can try to get a good price for the goods rather than leaving it for the HP company to sell them. Usually it is not recommended to return the goods to the HP company until you've considered all other options. Usually you pay a deposit when you agree to the hire purchase contract. The larger the deposit, the lower your instalments will be and vice versa.
You should remember that buying goods by hire purchaseor through finance agreementis much more expensive in the long run. You pay a higher price for the goods. You might want to think about the following instead:
- Saving and paying cash for the goods
- Saving so that you can pay a bigger deposit and lower instalment repayments
Layby
A layby is an agreement with a seller where you pay a deposit to have goods held on your behalf. You can't receive the goods until you pay the supplier the total purchase price.
You usually pay the total purchase price in instalments over a period of time agreed to by you and the seller.
You can cancel a layby agreement to purchase at anytime and for any reason. You will have to inform the seller verbally or in writing. However, you can't cancel a layby if the goods cost less than $5.
If you cancel the layby, the seller must give you a cash refund of how much you have paid if you demand it. It doesn't matter if they have a sign saying something different to this. You don't have to accept a credit instead (where the seller says you can buy something else in the shop up to the amount you have already paid).
The seller, however:
- can make you pay for reasonable storage costs while they have been holding the goods for you; and
- can take some of the money you have already paid. This happens when the value of the goods has decreased because of the amount of time they have been held on layby (the layby must have been going for longer than 1 month); and
- for 'selling costs', which shouldn't amount to more than a few dollars.
The seller can cancel the agreement if you don't pay the instalments within the agreed amount of time. The seller must advise you the layby is being cancelled and give you say a week to come up with the rest of the money. If you don't, they can put the goods back out for sale and must give you a full refund.
You are entitled to a statement once a month if you pay for them to post it to you. However, it is just as easy to get a receipt every time you make a payment.
The total price must be the price the goods were originally selling for at the time of the layby (plus storage costs). The seller can't put the price up if new stock of the good is at a higher price.
Sometimes you might have to pay a deposit. The general rule is that you don't get your deposit back if the deal doesn't go through. You can get back your deposit if the seller fails to meet their side of the deal or you discussed it with the seller beforehand and they agreed that the deposit would be refunded.
If the seller goes bankrupt while your goods are on layby, you can:
- Get a full refund, or
- Pay the balance and receive the goods.
If you collect the goods and they are faulty you have the right to a refund or a replacement or repair depending on how serious the fault is (see 'so I bought faulty goods, What can I do'?).
If you go to collect the goods and the seller hasn't kept the goods on layby for you, you can demand a replacement or full refund of the money you have paid. You can also claim any increase in price you may have to pay at another shop to get similar goods.
Door-to-Door Sales
A Door-to-Door sale is when the seller approaches you at home to sell his / her goods or services. They might phone you to make an appointment or just come by the door. You have rights under the Door to Door Sales Act when you buy goods or services this way. However the following must apply before you are protected by the Act:
The salesperson must be uninvited. If the seller rings you and arranges a time to come around, it is still considered "uninvited". If you call the salesperson and invited him/her to your house, it is considered to be 'invited' and you do not have rights under this Act.
You must have received a written contract which both you and the seller have signed. It must show the seller's name and address as well as the full cost of the agreement.
The agreement you signed must tell you about your right to cancel and give you an official 'notice of cancellation' that you can use if you decide to cancel.
NOTE: The above requirements do not apply to:
- Cash sales where you pay the full price.
- Credit sales less than $40 (excluding hire purchase).
- Book sales for less than $20.
- Hire purchase for less than $20.
If your door to door sale is covered by the Act and you change your mind and decide you don't want the item you have agreed to buy, you can get out of the contract. There is a 'cooling off' period for 7 days from the date of the agreement. During this period you can cancel the contract and you don't have to give a reason.
To cancel a door to door sale you need to:
- Write to the trader to let them know of your intention to cancel, or use the 'notice of cancellation' form.
- Use registered mail so you can prove you posted the letter within 7 days of signing the agreement.
- Photocopy your letter for reference.
- Any money you have paid. The trader must return this money to you and you can hold the goods you received until this happens.
- The return of any goods traded in or the value the trader placed on the trade-in, within 10 days of cancellation.
- The restoration of your property to what it was before the work begun. Don't pay for services already provided.
Mail Order, Internet & Home Shopping
You might have seen them before on TV ' the steak knives and the exercise equipment infomercials ' on sale. This is called home shopping. Internet shopping is becoming popular too. You might also be getting catalogues sent to your house that you can order goods and services from.
So what are my rights if I want to buy this way?
Basically, the same rules apply to these goods that apply to buying goods in a shop. But be careful. There are a lot of extra things you have to watch out for:
- Not receiving goods that you have paid for
- Long delays in receiving goods
- Difficulties in getting refunds for unsatisfactory goods or goods you haven't received
- Problems in getting complaints dealt with
Before you buy something by home shopping, you should check this list:
- Make sure that you have all the important information - full details of the product, any guarantees, any money back, delivery time, etc. If you don't, then ask for the details before you order.
- Check if the seller is a member of the Direct Marketing Association. This association gives their 'Seal of Approval' for approved sellers.
- Make sure you keep copies of any correspondence, including your original order. Make sure you give your name and address clearly.
- Check everything the moment it is received. If there is anything wrong, contact the seller immediately. If it is not what you ordered, return it for an exchange or a refund.
You can return the goods if:
- They do not meet the guarantees in the Consumer Guarantees Act 1993; or
- There is a trial period.
Remember that, if you buy from a company based overseas you are not covered by New Zealand's consumer laws, but by that country's consumer laws. Beware that enforcement across borders is difficult, and seeking redress can be costly.
It is common for mail order advertisements to offer you a trial period e.g. '21 days free or your money back!' You are entitled to return the good at any time within the stated period. You do not have to give a reason for returning the goods. But, watch out! Although you don't have to pay for the goods, you do have to pay for the postage and packaging, which can be very expensive if the thing you ordered is large, such as an exercise machine.
If you do not get the goods that you ordered and the seller has cashed your cheque, you can:
- Contact the mail order company to ask if the goods have been sent
- Contact the New Zealand Direct Marketing Association. If the seller is an approved trader, they might be able to help.
The New Zealand Direct Marketing Association inspects and approves mail order companies. If a seller is awarded their 'Seal of Approval', it means that the seller will notify you of any delays in delivery, process exchanges and refunds quickly and abide by the NZ Direct Marketing Association's code of ethics.
For more information, contact
New Zealand Direct Marketing Association
PO Box 47 681
Ponsonby
Auckland
Telephone: (09) 303 9470 or 0800 222 332
Fax: (09) 303 4787
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)
.
Direct Selling Association of New Zealand
Ph: (09) 367 0935
Fax: (09) 367 0914
Email: dsanz@dsanz.co.nz
Website: www.webnz.co.nz/dsanz
YouthLaw |
Latest page update: made by YouthLaw
, Dec 9 2009, 7:45 PM EST
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