The Consumer Guarantees Act (CGA) 1993 is a

consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...

law that was enacted in

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...

in 1993. Consumer protections were previously in the

Sale of Goods Act 1908 The Sale of Goods Act 1908 was an Act of Parliament passed in New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Isl ...

Differences over the Sales of Goods Act

One of the CGA's biggest changes was that it extended protection to consumers for the supply of services. 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

retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...

er a reasonable time to either fix or replace the goods, otherwise the consumer has the right to reject the goods, cancel the

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...

, and obtain a full refund from the retailer. The

legislation Legislation is the process or result of enrolled bill, enrolling, enactment of a bill, enacting, or promulgation, promulgating laws by a legislature, parliament, or analogous Government, governing body. Before an item of legislation becomes law i ...

has now been amended to include online purchases from traders, including auction websites such as

TradeMe Trade Me is New Zealand's largest online auction and classifieds website. Managed by Trade Me Ltd., the site was founded in 1999 by New Zealand entrepreneur Sam Morgan (entrepreneur), Sam Morgan, who sold it to John Fairfax Holdings, Fairfax in ...

and Shopless. The CGA gives guarantees of reasonable care and skill, of fitness for purpose, of completion, and of price for

consumer services Consumer services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, paints, plastics, metal ...

supplied. The CGA does not apply to either commercial goods, or consumer good or services supplied for business purposes.

Cases

* Finch Motors Ltd v Quin (No 2) * Price v Sports Marine Ltd

References

{{Reflist

External links

Link to full text of Act
Statutes of New Zealand Consumer protection legislation 1993 in New Zealand law Business in New Zealand New Zealand business law