The Consumer Guarantees Act (CGA) gives you automatic rights when you buy goods or services from a business in New Zealand, including the right to a repair, replacement, or refund if something goes wrong.
The Consumer Guarantees Act (CGA) sets minimum standards and explains when you can ask for a repair, replacement, or refund.
The CGA applies to purchases from businesses and people "in trade", including online sellers operating in New Zealand. It can also apply to some overseas businesses targeting NZ consumers under broader consumer law settings.
Your quick guide to the Consumer Guarantees Act (CGA)
Your rights under the Consumer Guarantees Act
If you buy goods or services from a business in New Zealand, the CGA gives you automatic rights.
These rights apply whether or not a warranty is offered and cannot be waived or signed away.
The guarantees that apply depend on whether you are buying goods or services.
Find out more below: Quality guarantees in the CGA
Products must:
- be of acceptable quality
- be fit for purpose
- match their description
- be delivered within a reasonable time.
Services must:
- be carried out with reasonable care and skill
- be fit for purpose
- be completed within a reasonable time
- cost a reasonable price if no price was agreed.
Acceptable quality means products must be safe, durable, and free from defects.
These guarantees apply even if the price or timeframe was not agreed in advance.
When the CGA applies
The CGA applies if you buy goods or services:
- from a business (including NZ‑based online sellers)
- for personal, domestic, or household use
- whether the item was bought or gifted to you
- regardless of any store warranty or guarantee
If a product or service does not meet these guarantees, you may be entitled to a repair, replacement, or refund.
When the CGA does not apply
The CGA does not apply when:
- you change your mind
- you misuse or damage the product
- you knew about the fault before buying
- you bought from a private seller who is not in trade, including some Trade Me or Facebook Marketplace sales
- the purchase is for business use and both parties agreed in writing that the CGA does not apply
- the product is for resale or manufacturing
- the item was donated by a charity.
Other laws may still protect you, for example:
Credit Contracts and Consumer Finance Act (CCCFA)
Your right to a remedy
When products fail a guarantee
You can expect the business to:
- repair, replace, or refund the item at no cost
- provide the remedy within a reasonable time.
If businesses do not do as expected:
- you can get it repaired elsewhere and claim costs, or
- reject the product for a refund or replacement if the problem is serious.
A problem is 'substantial' if:
- a reasonable person would not have bought the product if they knew about the fault
- it is very different from its description
- it cannot be fixed easily or safely
- it is unsafe.
When a service fails a guarantee
You can require the business to fix the problem.
If they refuse or do not act in reasonable time, you can:
- get it fixed elsewhere and claim the cost
- cancel the service and get a refund (full or partial, depending on value received).
A failure is 'substantial' if:
- you would not have bought the service if you knew the issue
- the job does not achieve the result agreed
- the outcome is unsafe.
You may also claim compensation for extra loss or damage.
Services with special rules
Some products and services have special guarantees and conditions in addition to the CGA that may impact your rights. These are:
Minor problems
If the problem is minor the business can choose to repair, replace, or refund. And do so free of charge and within a reasonable time.
When you may also claim compensation
If the fault causes extra costs, for example damage or delays, you can ask the business to cover those losses.
What to do first when there is a problem
- Contact the business and explain the issue.
- Say what remedy you would like.
If you cannot resolve it, you can go to the Disputes Tribunal for a final decision.
It’s not always easy to know if you are entitled to a remedy if there is a problem with your product or service. Check your rights to repairs, replacements, and refunds for products. Our Consumer Rights Finder will take you through common situations that can be a little tricky to figure out.
Quality guarantees in the CGA
The CGA sets out quality guarantees any business or person in trade must provide to their customers when selling goods and services.
The guarantees mean you can expect products to be acceptable quality and fit for purpose and that services are performed with due care and skill.
When these guarantees are not met, you can expect the business to remedy the situation promptly.
Your guarantees when buying a product
When you buy a product from a business in New Zealand, it must:
- be of acceptable quality — safe, durable, free from defects, and last a reasonable time
- be fit for its intended purpose — including any purpose you discussed with the seller
- match its description — online listings, packaging, labels, samples, or demonstrations
- be reasonably priced — if no price was agreed before purchase, you only have to pay a reasonable price
- be delivered on time — or within a reasonable time if no date was agreed.
If a product does not meet these guarantees, you may be entitled to a repair, replacement, or refund.
Your guarantees when buying a service
When you buy a service from a business, it must:
- be carried out with reasonable care and skill
- be fit for the purpose you asked for
- be completed within a reasonable time — If no timeframe was agreed
- cost a reasonable price — if no price was set.
If a service does not meet these guarantees, you can ask the business to fix the problem, cancel the service, or provide a refund, depending on how serious the issue is.
Gather evidence to support your complaint
Under the Contract and Commercial Law Act, suppliers may not be liable if work cannot be completed because of events beyond their control, also called ‘force majeure’.
Your right to a remedy
The Consumer Guarantees Act gives you the right to seek a remedy from the business when a product or service you have purchased is faulty or poor quality or does not meet one of the other consumer guarantees.
The remedies set out in the CGA differ for products and services and depend on how serious the failing is.
Remedies when a product does not comply with the guarantees
The business can remedy the problem by repairing or replacing the product (with an identical model) or providing a refund. The remedy must be provided at no charge and within a reasonable time.
If the business refuses or does not do so within a reasonable time, you can have the product repaired elsewhere and request the supplier pays for all reasonable costs for doing so, or you can return the product.
Where a remedy is not provided in a reasonable time or is a failure of substantial character, you can:
- return the product and ask for a refund or a replacement
- keep the faulty product but get compensation for the difference in value compared with one in good condition.
In addition to these remedies, you can claim compensation for any additional loss or damage to you from the failure.
Remedies and 'substantial character'
A problem or fault is of substantial character if:
- a reasonable person would not have bought the product if they had known about the fault, considering the nature of the fault, price paid and other information that might indicate expected durability of the product
- the product is significantly different to its description, sample, or demonstration model
- the product is unfit for its normal purpose and cannot easily be put right within a reasonable time, for example, washable wallpaper that bubbles after being wiped clean
- it does not achieve a particular result that you told the service provider you wanted, and cannot be easily fixed within a reasonable period
- it is unsafe, for example, a bicycle with faulty brakes.
A ‘reasonable time’ is defined by how long it would take most businesses to fix or replace the product.
Sometimes a business may offer an alternative, such as a discount on another item or a store credit. It is up to you to decide if the offer is fair, but you do not have to accept it.
If the business is not willing to negotiate you can seek help to get a resolution.
Get a final decision on a complaint
Remedies when a service does not comply with the guarantees
If a service fails to comply with one of the service guarantees:
- If it can be fixed you can require the supplier to fix the problem within a reasonable time. If the supplier refuses or fails to do so within a reasonable time, you can:
- have it fixed elsewhere and recover the costs from the supplier, or
- cancel the contract for the supply of the service.
- If it cannot be fixed or the failure is of ‘substantial character’, you can cancel the contract for supply of the service and ask for a refund. If you have not paid yet, you can refuse to pay for the work. If the service has already been provided and is still of some value, you may only be entitled to a partial refund, or you may still need to pay for some of the work.
In addition to these remedies, you can claim compensation for any additional loss or damage to you from the failure.
What 'substantial character' means
A problem or fault with a service is of ‘substantial character’ if:
- a reasonable person would not have purchased the service if they had known about the nature and extent of the service failure
- the result of the service does not achieve a particular result that you agreed with the service provider you wanted and cannot be easily fixed to achieve that purpose within a reasonable period
- the result of the service provided is unsafe, for example, an electrician wires a wall socket incorrectly.
If you think it is a substantial character problem, but the supplier does not, get a second opinion from someone who knows about that type of product.
Gather evidence to support your complaint
Learn more about your rights and remedies, claiming for loss or damages and what to expect here.
Business responsibilities when resolving problems
Businesses should not say they do not give refunds, or put conditions to refunds, such as set time frames. Businesses also cannot limit their obligations to the terms of a store or manufacturer’s warranty.
A business cannot contract out of the CGA when selling to consumers. Misleading consumers about their CGA rights may breach the Fair Trading Act.
If you feel you have been misled by the seller in this way or during the sales process, you may wish to make a formal complaint to the Commerce Commission.
Obligations under the Consumer Guarantees Act
Your rights as a consumer (external link) — Commerce Commission
Special guarantees and protections
Some products and services have special guarantees and conditions in addition to the CGA that may impact your rights.
Electricity and gas services must meet a specific guarantee of acceptable quality. This guarantee applies instead of the general CGA guarantees that apply to products and services.
There are also special guarantees on domestic and international flights, cancellations, and flight delays. You can find more specific details about these categories listed below.
When things go wrong
The CGA protects you by giving you guarantees and rights to remedies when things go wrong but it is up to you to act.
Start by contacting the business to make a complaint. We have tips and guidance to help you prepare and complain with confidence.
Contacting the business with a complaint
If you have already contacted the business and you cannot agree on a remedy, you can get a final decision through the Disputes Tribunal or other resolution service.