The customer is not always right
Giving remedies for any and all complaints may feel like less hassle, but it will cost you money — and you’re less likely to look into what causes problems and find solutions.
The Consumer Guarantees Act (CGA) says customers can get a replacement, repair or refund for:
- faulty products
- substandard services
- late deliveries
- being overcharged if the price wasn’t set beforehand.
But you do not have to give a refund, repair or replacement if the customer:
- changes their mind
- caused the problem either on accident or on purpose
- doesn’t follow your advice about a product’s use or care, eg washing instructions
- goes to someone else for repairs before coming to you.
You also do not have to give a remedy if the problem was caused by something beyond your control, eg an earthquake.
Obligations under the Consumer Guarantees Act
Test your returns knowledge
The steps you must take depend on what’s gone wrong and how serious it is. But in all cases, you must act promptly. Lack of action will annoy your customer. It will also count against you if a complaint goes to the Disputes Tribunal or District Court.
This doesn’t mean immediately giving a refund, repair or replacement. It means taking the customer seriously and looking into their complaint.
It’s your right to investigate before deciding what to do. Find out as much as you can before you decide what — if any — remedy to offer. If a customer makes a complaint that seems unreasonable — or they don’t give you enough information up front — be polite but assertive.
It’s a good idea to print out our visual guide to what you must do for customers under the Consumer Guarantees Act (CGA). Pin it up where you and any staff can easily check it, eg the break room or back of the staff toilet door.