Date of Royal Assent 20 August 1993 | Date commenced 1 April 1994 | |
The Consumer Guarantees Act [1993] was a significant improvement of consumer protection in New Zealand over its predecessor The Sale of Goods Act [1908], and rectifies a lot of its shortcomings.
Contents
Differences over the Sales of Goods Act
One of the CGA's biggest changes was that it now extended protection to consumers for the supply of services, and not just for purchases of goods under the old Act. Another change was that the CGA explicitly outlawed a merchant from contracting out of the CGA, such as having a "no refunds" or "no returns" displayed.
Guarantees for Goods
The CGA gives guarantees to free title, quality, fitness for purpose and price of consumer goods. The goods must also comply with description and with sample. If a good is faulty, the Act gives the retailer a reasonable time to either fix or replace the goods, otherwise the consumer has the right to reject the goods, cancel the contract, and obtain a full refund from the retailer. The legislation has now been amended to include online purchases, including auction websites as Trademe.
Guarantees for Services
The CGA gives guarantees of reasonable care and skill, of fitness for purpose, of completion, and of price for consumer services supplied.
Shortfalls of the CGA
Whilst the CGA was a significant improvement over the SGA, the CGA does not apply to either commercial goods, or consumer good or services supplied for business purposes.