The Consumer Guarantees Act (New Zealand)
The Act sets out
guarantees that goods and services must meet when sold by someone in trade
remedies if a guarantee is not met.
The Act covers any goods or services sold by someone in trade (including second hand goods) normally acquired for personal, household or domestic use such as groceries, personal computer, car, hair dressing, lawn mowing.
The Act does not cover any goods or services normally bought for commercial use such as plant machinery or farming equipment. The Act also does not cover goods sold at auction or tender, bought for re-sale or re-supply, real estate, or goods and services bought privately.
If you have bought goods from a retailer for use in your business at home, such as personal computer, pens, printer paper you may be covered by this Act. However, a trader can contract out of the Act if you have bought goods generally bought for personal, domestic or household use for a business purpose.
If you have bought goods to use in manufacturing or for re-sale from a supplier, these contracts are not covered by the Act. Your rights and remedies in this situation are set out either in your contract terms or under a law called the Sale of Goods Act.
If you are selling goods and services to the public which come under the Consumer Guarantees Act you can find out more about your responsibilities at http://www.consumeraffairs.govt.nz/consumerinfo/cga/index.html
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Fair Trading Act
This Act prohibits people in trade from misleading or deceptive conduct or making false representations about goods, services, property and employment services. The Fair Trading Act normally applies to situations before entering into a purchase of goods or services relating to information provided by a seller or distributor. Unlike the Consumer Guarantees Act you do not have to have purchased goods or services to seek compensation for a breach of the Act.
The Act also prohibits certain trade practices such as bait advertising, referral selling and pyramid selling schemes.
For further information visit:
The Commerce Commission's web site at http://www.comcom.govt.nz
The Ministry of Consumer Affairs maintains a web site at http://www.consumeraffairs.govt.nz/
Within this site there are specific sections on:
Business information - http://www.consumeraffairs.govt.nz/businessinfo/index.html information on specific Acts such as the Consumer Guarantees Act, Fair Trading Act, Motor Vehicle Dealers Act and other legislation.
General information on Weights and measures http://www.consumeraffairs.govt.nz/measurement/index.html
Safety issues - http://www.consumeraffairs.govt.nz/productsafety/index.html
Policy - http://www.consumeraffairs.govt.nz/policyandlaw/index.html
Publications - http://www.consumeraffairs.govt.nz/publications/index.html
ScamWatch - http://www.consumeraffairs.govt.nz/scamwatch/index.html provides an up to date list of scams currently circulating in New Zealand plus what to look out for so you don't fall for a scam. Those scams that particularly target small businesses are: Nigerian letter scam, unsolicited share offers and proforma invoicing.
Contacts - http://www.consumeraffairs.govt.nz/contactus/index.html Contact details for the Ministry and links to other consumer organisations both within New Zealand and around the world.
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If I need further assistance where can I go?
If you have a complicated legal problem, where the information on our web site is not sufficient for your needs, it may be in your best interests to seek the advice of a lawyer.
If you have a dispute with a customer or a supplier where you are aware of your legal rights and are seeking redress, you could consider a claim to the Disputes Tribunal. The Tribunal can hear claims up to a value of $7,500 (or up to $12,000 with the agreement of the other party) regarding consumer law issues. The Tribunal can not be used for debt collection purposes. For more information on the tribunal seehttp://www.lawaccess.co.nz/NewZealand_YourLaw_ConsumerLaws.htmlor visit your nearest District Court.
Insurance & Savings Ombudsman:
Postal address: PO Box 10-845,
<Street address: Level 7, BDO House, 99-105 Customhouse Quay
Wellington
Phone: (04) 499 7612
Fax: (04) 499 7614
iomsbudsman@clear.net.nz
http://www.iombudsman.org.nz
Free phone 0800 888 202
Commerce Commission:
Postal address: PO Box 2351
Street address: Level 6 44-52 The Terrace
Wellington
Phone: (04) 924 3600
Fax: (04) 924 3700
http://www.comcom.govt.nz
Fair Trading Branch offices in Auckland and Christchurch.
To contact the Commission with information about unfair or misleading trading practices, or anti-competitive behaviour by businesses: call the Contact Centre on 0800 94 3600
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