Receipts, Warranties and Consumer Guarantees (CGA)

🛍️ Receipts, Warranties and Consumer Guarantees

In New Zealand, two pieces of legislation give you far stronger consumer rights than most people realise. The Consumer Guarantees Act 1993 (CGA) says goods must be fit for purpose, match their description, and last a reasonable time. The Fair Trading Act 1986 (FTA) forbids misleading advertising and deceptive sales tactics. Combined, they mean "all sales final" is usually nonsense, extended warranties are often a waste of money, and the Disputes Tribunal gives you a cheap path to enforce your rights when retailers refuse.

                Key Point: Under the CGA, retailers MUST repair, replace or refund faulty goods. These rights CANNOT be waived by fine print, "sold as seen" signs, or "no returns" policies. The CGA even applies to items on sale, up to 6 years after purchase in some cases, as long as the product didn't last a reasonable time for what it was. Keep receipts (or bank statements as proof), know your rights, and use the Disputes Tribunal ($30,000 limit, $60 filing fee, no lawyers) if a retailer won't cooperate.
            

What the CGA Actually Guarantees

Every good you buy from an NZ business must meet SIX guarantees. These apply automatically. The retailer cannot "opt out".

Guarantee	What It Means
Acceptable quality	Fit for normal purpose, free from minor defects, safe, durable
Fit for purpose	Must do what you told the retailer you needed it for
Match description	Must be as described online, in-store, or by the salesperson
Match sample	Must match any sample or demo model shown
Reasonable price	(If no price agreed) A fair market price applies
Clear title	Seller has the right to sell it; no hidden debts on it

"Acceptable Quality" - The Big One

The most-cited guarantee. Acceptable quality means a reasonable consumer would be fully satisfied with the goods, knowing their nature, price, and any pre-sale disclosures. Factors:

Durability: How long should this product reasonably last? A $2,000 fridge should work for 7 to 10 years. A $300 budget phone should last 2 to 3 years.
Price paid: A $5,000 laptop is held to a higher durability standard than a $500 laptop.
Nature of product: A pair of hiking boots should withstand outdoor conditions; city dress shoes needn't.
Description and statements: If it's advertised as "waterproof" it has to actually be waterproof.
Disclosure of defects: If you're told before purchase (e.g. "this ex-display TV has a scratch on the back"), that's accepted.

There's no fixed time limit. A budget kettle failing at 13 months isn't covered by a 12-month warranty, BUT the CGA may still cover it because reasonable durability for a kettle is 3+ years. This trumps any manufacturer warranty.

Who's Liable: Retailer vs Manufacturer

Here's what most people don't know: under the CGA, the RETAILER is your primary legal contact, not the manufacturer. If you buy a Samsung TV from Harvey Norman and it fails in year 3, your remedy is with Harvey Norman, not Samsung. Harvey Norman cannot say "go to Samsung". They can claim back against Samsung themselves afterwards.

This matters because retailers often try to deflect: "Sorry, out of manufacturer's 12-month warranty, you'll need to contact Samsung directly." This is incorrect. Your CGA rights are against the RETAILER and can last for years.

Receipts, Bank Statements, Proof of Purchase

Receipts: Best. Photograph big-ticket receipts immediately.
Bank statements: Accepted as proof if receipt is lost.
Loyalty card records: Many retailers can look up your purchase via Onecard, Flybuys, etc.
Email confirmations: Online purchases almost always come with email receipts - search your inbox.
Credit card statements: Shows the transaction; retailer can usually verify.

Retailers sometimes say "no receipt, no refund". This is wrong. You need to PROVE purchase - any reasonable evidence works.

What Isn't Covered by CGA

Private sales (TradeMe between individuals, not businesses): Caveat emptor applies.
Businesses buying from businesses: CGA can be contracted out of in B2B.
Fair wear and tear: Normal ageing isn't a CGA failure.
Damage you caused: Dropped phone, spilt coffee on laptop. Not the retailer's problem.
Products you misused: Using a kitchen mixer to mix concrete: not covered.
Products you bought at auction (specific exclusion) from a Business, but the Fair Trading Act still applies.
Services are covered by a slightly different set of guarantees (reasonable care and skill, fit for purpose, completed in reasonable time, reasonable price).

📜 Warranties and the Fair Trading Act

Manufacturer Warranty vs CGA: Which Is Better?

Most products come with a manufacturer's warranty (commonly 12 or 24 months). This is a contractual promise from the manufacturer. It's additional to - not a replacement for - your CGA rights.

Feature	Manufacturer Warranty	Consumer Guarantees Act
Length	Fixed (e.g. 12 months)	Reasonable durability - could be 3 to 6+ years
Who's liable	Manufacturer	Retailer
Claim process	Varies - often lengthy, proof required	Direct with retailer, free enforcement via Disputes Tribunal
Legal force	Contractual (only what's promised)	Statutory - can't be waived

In practice: always claim under whichever gives better outcome. If a brand offers a 5-year warranty, use it (it may be faster than asserting CGA rights). If warranty has lapsed but the product failed early for its price, use the CGA.

Extended Warranties: Usually a Bad Deal

"Would you like to add a 3-year protection plan for $399?" Extended warranties are among the highest-margin products in retail. They're usually a bad deal because:

You already have CGA rights that often cover the same period.
Failure rates are low: Most products don't fail within the extended period.
Exclusions are huge: Accidental damage usually excluded, "normal wear and tear" excluded, often only covers manufacturer-only defects.
Claims process is opaque: Third-party administrators, long waits, lots of paperwork.
Retailer commission: Salespeople often get 30%+ commission on these, which is why they push them so hard.

Consumer NZ repeatedly recommends declining extended warranties. Use your CGA rights instead. Occasional exceptions: very expensive items (e.g. commercial espresso machines) or items known for high failure rates (which is itself a sign to rethink the product).

The Fair Trading Act 1986

The FTA is the other half of the consumer rights framework. Where the CGA deals with goods/services quality, the FTA deals with HOW things are sold.

FTA prohibits:

Misleading or deceptive conduct: False or misleading statements about the product or service
False representations: e.g. "Limited edition" when it's not, "NZ made" when it's imported
Unsubstantiated claims: "Clinically proven" without actual clinical proof
Bait advertising: Advertising a great deal with very limited stock, pushing people to upsells
Pressure selling: High-pressure tactics in-home or by phone
Uninvited direct sales: 5-day cooling-off period on door-to-door sales over $100

FTA penalties: Up to $200,000 per offence for individuals, up to $600,000 for companies. Enforced by the Commerce Commission.

Online Purchases

All CGA and FTA rights apply to online purchases from NZ sellers. Additional rules:

Distance Selling (under the FTA): Clear info on price, delivery, and business identity required
Uninvited direct sales rules (FTA Part 4A): may apply to door-to-door or phone-hassle sales
Overseas sellers: If you buy from an overseas site (Temu, AliExpress, Amazon US), CGA doesn't apply. Your credit card chargeback may be your main remedy.
Goods in transit: Goods are the seller's responsibility until delivered to you (unless you chose your own courier)

"Sold As Seen" and Other Dodgy Signs

Retailer tactics that don't actually remove your rights:

"All sales final" - doesn't override CGA
"No refunds on sale items" - wrong, CGA still applies to sale items
"Exchange only, no refund" - CGA lets YOU choose repair/replace/refund for major failures
"Manufacturer warranty only, talk to them" - retailer is your first point of contact under CGA
"You agreed to it in the T&Cs" - can't contract out of CGA with consumers

The ONLY time CGA doesn't apply is if the fault was explicitly disclosed before purchase (e.g. "This refurbished unit has a scratch on the screen, reduced price") AND the fault you later complain about is the SAME disclosed fault.

⚖️ Disputes and Enforcement

Step 1: Talk to the Retailer Calmly

Most disputes resolve at this stage. Go in (or call) armed with:

Your receipt or other proof of purchase
The product (or photos of the fault)
A clear description of the problem
What you want: repair, replace, or refund
Your CGA rights clearly in mind

Don't start confrontational. Most front-line retail staff genuinely want to help but haven't been trained on CGA specifics. Phrases that work:

"I'd like to exercise my rights under the Consumer Guarantees Act."
"I believe this product hasn't lasted a reasonable time for its price and description."
"Under the CGA, I'd like a [repair / replacement / refund]."

Major Failure vs Minor Failure

This matters because it determines YOUR remedy options:

Failure Type	Examples	Your Remedies
Major failure	Doesn't work at all, unsafe, can't be used for purpose, significantly different from description	YOU choose: reject for full refund OR replace OR keep and claim compensation for drop in value
Minor failure	Works but has a fault that can be reasonably repaired	RETAILER chooses: repair, replace, or refund (within a reasonable time)

A laptop that switches off randomly is probably a major failure. A small cosmetic scratch on the casing is a minor failure.

Step 2: Written Complaint

If the front-line response doesn't resolve it, escalate in writing. Email is fine. Structure:

Date of purchase, item, price, receipt reference
Description of the fault
What you've already tried (visited the store on X date, spoke to Y)
Your CGA rights clearly stated
What you want (repair/replace/refund)
Deadline (10-14 working days is reasonable)
"If this isn't resolved, I'll escalate to the Disputes Tribunal"

Keep a copy. Even the mention of the Disputes Tribunal resolves most disputes because retailers know it's going to cost them time and effort they'd rather avoid.

Step 3: The Disputes Tribunal

If you can't resolve it directly, the Disputes Tribunal is NZ's cheap small-claims forum. Key features:

Limit: $30,000 per claim
Filing fee: $60 (as at 2026)
No lawyers allowed. You represent yourself.
Referees (not judges): Experienced mediators hear the dispute
Informal setting: Usually about 1 hour, around a table
Binding decision: Enforceable like a court order
Fast: Usually 6-8 weeks from filing to decision

File online at disputestribunal.govt.nz. Bring:

Receipt and proof of purchase
The product (if possible) or photos of the fault
Record of conversations with retailer
Copy of written complaint
Any independent assessments (e.g. repair quote)
Your statement of what you're claiming (refund amount, replacement, etc.)

Chargebacks: Your Credit Card Superpower

If you paid by credit card or Visa/Mastercard debit, you have ANOTHER layer of protection: chargebacks. This is a bank-initiated reversal of the transaction under Visa/Mastercard/Amex rules. Grounds include:

Goods not delivered
Goods significantly different from description
Merchant refuses to refund on a cancelled service
Unauthorised transaction
Merchant closed down / liquidated

Time limits: typically 120 days from transaction date. Contact your bank and ask to raise a "chargeback" (not just a dispute). The bank will contact the merchant; if merchant can't prove delivery and good faith, the charge is reversed.

Chargebacks are especially useful for:

Overseas purchases where CGA doesn't apply
Purchases from businesses that have gone into liquidation
Online merchants who stopped responding

Other Useful Bodies

Commerce Commission: Investigates widespread breaches (e.g. misleading advertising campaigns). Not for individual disputes but worth reporting systemic issues.
Consumer NZ: Membership-based, provides advice and takes up issues with retailers on members' behalf.
Citizens Advice Bureau (CAB): Free advice. 0800 367 222 or cab.org.nz
Community Law Centres: Free legal advice for those under certain income thresholds.

🔢 Worked Examples and Real-World Stories

Example 1: Laptop Failure Within 2 Years, Warranty Expired

You paid $2,400 for a laptop at Harvey Norman. 12-month manufacturer warranty expired 7 months ago (so 19 months old). Screen died.

Manufacturer warranty: EXPIRED

CGA durability for a $2,400 laptop: typically 4 to 5 years

Harvey Norman may initially say "contact manufacturer"

Correct position: Under CGA, retailer must repair, replace or refund

Likely outcome: Free repair (retailer's choice for minor-major boundary), OR refund of $2,400

If retailer refuses: written complaint citing CGA, then Disputes Tribunal.

Example 2: Extended Warranty vs CGA

$1,800 TV. Offered 3-year "protection plan" at $299.

Extended warranty cost: $299 (17% of product price)

CGA coverage (no cost): typically 5 to 7 years for a TV at this price

Extended warranty duration: only 3 years

Value of extended warranty vs CGA: marginal or negative

Better use of $299: invest or spend on something else

Example 3: Disputes Tribunal Cost-Benefit

Phone that cost $950 dead at 16 months. Retailer refuses anything.

Claim value: $950 (refund)

Filing fee: $60

Your time: approximately 6 hours prep + 1 hour hearing = 7 hours

Chance of winning a clear CGA breach like this: very high (~90%+)

Expected recovery: about $890 net after fees

Effective hourly rate: ~$127/hour

Real-World Story: The $3,800 Fridge Win

Tim, 34, Nelson

Fisher & Paykel fridge, $3,800. Failed at 3 years, 2 months. Outside 2-year manufacturer warranty.

What Happened:

Store (Noel Leeming) initially said warranty expired, nothing they could do
Tim wrote a formal letter citing CGA and "reasonable durability" (a $3,800 fridge should last 10+ years)
Store offered a partial discount on repair ($400)
Tim declined, filed at Disputes Tribunal
At hearing, Tribunal agreed 3 years was not reasonable durability for a premium fridge
Awarded: free repair by store

Lesson: Price paid matters. A premium product is held to a premium durability standard. Manufacturer warranties are the floor, not the ceiling.

Real-World Story: The Liquidation Chargeback

Priya, 28, Auckland

Paid $1,200 deposit on custom furniture. Company went into liquidation before delivery.

What Happened:

Furniture never delivered. Company owed money to many customers.
As an unsecured creditor, Priya would get ~5 cents on the dollar (maybe $60)
Priya had paid on her Visa credit card
Raised a Visa chargeback through ASB for "goods not delivered"
Bank investigated; furniture company couldn't prove delivery
Full $1,200 refunded to her card within 14 days

Lesson: Pay by credit card (or Visa/Mastercard debit) for ANY significant purchase. Chargeback protection is a massive advantage when merchants go under or disappear.

Real-World Story: The "No Refund on Sale Items" Fight

Maya, 22, Wellington

Bought on-sale winter boots, $140. Sole fell off after 3 weeks of normal wear.

What Happened:

Store refused refund, pointing to "SALE ITEMS - NO REFUNDS" sign
Maya cited the CGA directly - "this rule doesn't apply to faulty goods"
Shop manager still refused
Maya escalated via written complaint to the chain's head office
Head office immediately offered a full refund plus a $30 voucher

Lesson: Retail signs saying "no returns on sale items" are often unlawful when goods are faulty. The CGA applies regardless of whether an item was on sale. Head office is usually more aware of consumer law than store-level staff.

Real-World Story: The Disputes Tribunal Underdog

Ryan, 19, Hamilton

Bought a refurbished gaming console, $450. Stopped working after 5 weeks. 30-day retailer refund policy had lapsed.

What Happened:

Retailer quoted their 30-day policy, refused
Ryan filed Disputes Tribunal claim ($60 fee)
Prepared: receipt, photos of fault, copy of emails with retailer, screenshot of console's broken state
At hearing (30 minutes), referee asked about price, age of product, advertised condition
Retailer argued "as-is" disclaimer - referee ruled that didn't override CGA for a functional failure
Awarded: full refund $450 + the $60 filing fee = $510

Lesson: Retailer "return policies" are in ADDITION to CGA, not a replacement. If something fails within a reasonable time, CGA overrides the 30-day window. The Disputes Tribunal is designed exactly for these situations and works well for well-prepared claimants.

🎯 Test Your Knowledge

Quiz on NZ Consumer Rights

1. Under the Consumer Guarantees Act, who is your primary legal contact if a product fails?

The retailer who sold it to you

The manufacturer

The Commerce Commission

The courier

2. Does the CGA apply to items purchased on sale?

No, sale items are "as is"

Yes, full CGA rights apply to sale items

Only at half the usual durability

Only within 7 days

3. "Acceptable quality" is primarily assessed based on:

The retailer's return policy

Price, nature, description, and reasonable durability

Whether the warranty is still active

How many the retailer has sold

4. What's the current filing fee for a Disputes Tribunal claim in NZ?

$20

$60

$200

$500

5. For a MAJOR failure, who chooses the remedy (repair, replace, or refund)?

The consumer chooses

The retailer chooses

The manufacturer chooses

The Commerce Commission decides

6. Under the Fair Trading Act 1986, what's prohibited?

Charging interest on loans

Misleading and deceptive conduct in trade

Advertising on social media

Selling second-hand goods

7. What's the Disputes Tribunal claim limit?

$5,000

$15,000

$30,000

$100,000

8. An extended warranty on a $1,800 TV costs $299. Most consumer guides suggest:

Always take it

Usually decline - CGA rights often cover a similar or longer period for free

Only take it on cheap products

Negotiate it down to $150

9. If a company goes into liquidation before delivering your online order, the best recovery path is usually:

Sue the directors personally

File with the Disputes Tribunal against the liquidator

Chargeback through your credit/debit card bank

Accept the loss - nothing can be done

10. A retailer's sign says "NO REFUNDS ON SALE ITEMS". You bought a faulty product on sale. Your CGA rights are:

Waived because of the sign

Still valid - the sign can't override the CGA for faulty products

Reduced by 50%

Only valid for 24 hours

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