Using the Consumer Guarantees Act at the Disputes Tribunal in NZ

A retailer sold you faulty goods and refuses a refund. A tradesperson delivered substandard work and won't fix it. A service provider charged you for something that didn't match the description. These are Consumer Guarantees Act claims — and the Disputes Tribunal is where most of them end up.

What the Consumer Guarantees Act Covers

The Consumer Guarantees Act 1993 (CGA) gives automatic guarantees whenever a consumer buys goods or services from someone in trade. These guarantees apply regardless of what the seller's terms and conditions say — they can't be contracted out of for consumer transactions.

For goods, the key guarantees include:

• Acceptable quality (safe, durable, free from defects, acceptable in appearance)
• Fit for a particular purpose (if you told the seller what you needed it for)
• Match the description (what was advertised or described to you)
• Match the sample (if you bought based on a sample or demonstration model)

For services, the guarantees include:

• Carried out with reasonable care and skill
• Fit for a particular purpose
• Completed within a reasonable time (or by the agreed date)
• Provided at a reasonable price (if no price was agreed upfront)

The Fair Trading Act 1986 adds further protection against misleading conduct, false representations, and deceptive advertising. Both Acts are commonly pleaded together in Disputes Tribunal claims.

When to Use the Disputes Tribunal

The Disputes Tribunal handles CGA claims up to $60,000. For most consumer disputes — a faulty appliance, a botched service, or a refused refund — the amounts involved are well within this ceiling.

One important exclusion: purchases of motor vehicles from registered dealers go to the Motor Vehicle Disputes Tribunal (MVDT) under the Motor Vehicle Sales Act 2003, not the Disputes Tribunal. If you bought a car from a private individual, though, the Disputes Tribunal is the right forum.

Building a CGA Claim

Your job is to show the Referee three things: you bought the goods or services as a consumer from someone in trade, a CGA guarantee was breached, and you've suffered a financial loss as a result.

Proof of purchase. Receipt, invoice, bank statement, or online order confirmation showing what you bought, when, and from whom.

Evidence of the defect or failure. For goods: photos of the fault, an independent inspection report, or written confirmation from another repairer that the product is defective. For services: photos of poor workmanship, quotes from another tradesperson to redo the work, or correspondence showing the service didn't match what was agreed.

Your attempts to resolve it. For a failure that can be remedied, show that you notified the supplier and gave them a reasonable opportunity to put it right. For a major goods failure or a service failure that cannot be fixed or is of substantial character, the CGA can give you different remedies without that repair step.

Your financial loss. The repair cost, replacement cost, or purchase price you want refunded. If the faulty goods or poor service caused additional losses (damaged property, costs of a temporary workaround), include those with supporting documents.

What Remedies Can You Get?

Under the CGA, your remedy depends on whether the failure is major or minor:

Minor failure (goods): The supplier can choose to repair, replace, or refund. You can't demand a refund if they're willing to repair within a reasonable time.

Major failure (goods): You can return the goods and ask for a refund or replacement, or keep them and claim compensation for the reduction in value. A failure is of substantial character if a reasonable person would not have bought the goods knowing the fault, the goods differ significantly from their description or sample, they are unfit for their normal purpose and cannot easily be put right, or they are unsafe.

Services failure: If the problem can be fixed, you can require the supplier to fix it within a reasonable time. If they refuse or fail to do so, you can have someone else fix it and seek the reasonable cost; if it cannot be fixed or the failure is of substantial character, you can cancel the service contract and ask for a refund.

The Referee applies these rules when deciding what to order. Being clear about whether you're claiming under a major or minor failure helps your case.

The Demand Letter Step

Before filing at the Tribunal, send the supplier a written demand that:

• Describes the defect or service failure
• References the specific CGA guarantee breached (acceptable quality, fit for purpose, etc.)
• States the remedy you want (refund, repair cost, compensation)
• Gives a deadline of 10–14 working days to respond

This demonstrates to the Referee that you gave the supplier a fair chance to fix things before escalating. Most suppliers take demand letters more seriously than phone complaints.

The NZ Disputes Tribunal filing guide includes templates and worksheets for structuring a CGA claim, from the demand letter through evidence preparation and the hearing.

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