Disputes Tribunal NZ Refund Claim — Responding When a Customer Demands Their Money Back

What a Refund Claim at the Disputes Tribunal Looks Like

A customer is asking the Disputes Tribunal to order you to return their money — either the full purchase price or a partial amount to cover the gap between what they paid and what they say they received. Refund claims are among the most common at the Tribunal, covering everything from faulty goods and unfinished services to outright misrepresentation.

The referee will assess the claim against two frameworks, depending on the situation: the Consumer Guarantees Act 1993 (CGA) for trade suppliers, and the Contract and Commercial Law Act 2017 (CCLA) for general breach of contract.

The Consumer Guarantees Act Framework

If you're a trade supplier — a business selling goods or services in trade — the CGA applies. Under the CGA, goods must be of acceptable quality, fit for a particular purpose (if one was communicated), match their description, and arrive at a reasonable price if no price was agreed. Services must be carried out with reasonable care and skill, be fit for purpose, and be completed within a reasonable time.

When a consumer guarantee is not met, the customer's remedy depends on the applicable guarantee, the nature of the failure, and the statutory criteria:

Failure that can be remedied. Whether the supplier was given a reasonable opportunity to put the problem right is relevant to the customer's remedy. A customer is not automatically entitled to a refund just because they are dissatisfied.

Failure that may justify rejection or cancellation. The CGA provides rejection, cancellation, refund, or compensation remedies when its statutory criteria are met. Whether a customer may use one of these remedies depends on the type of goods or service and the circumstances.

This distinction matters for your defence. Present the details of the alleged failure and any remedy you offered; the referee will decide which statutory remedy, if any, applies.

Defending Against a Refund Claim

Your defence depends on the specific facts, but common lines include:

You offered to remedy the problem. Present evidence of any repair, replacement, or other remedy you offered — emails, text messages, or letters showing what you proposed and when. An offer is relevant context, but does not by itself decide whether the customer was entitled to reject goods or cancel a service under the CGA.

The goods or service met the standard. The customer may simply be unhappy with their purchase without there being an actual breach. "I changed my mind" isn't a CGA ground unless you have a returns policy that covers it. Show that the goods matched their description, worked as expected, and were of acceptable quality for their price.

The customer caused the problem. If the customer damaged the goods through misuse, failed to follow care instructions, or modified the product after purchase, the CGA guarantees may not apply to the resulting defect.

The requested remedy does not fit the failure. Even if something went wrong, the remedy depends on the applicable consumer guarantee, the seriousness of the failure, and the evidence. A full refund is not automatic.

You're not a trade supplier. The CGA applies to goods and services supplied in trade. A private sale between individuals is not covered by the CGA consumer guarantees; the claim may instead raise contract issues.

Preparing Your Evidence

For refund claims, the referee wants to see:

• The original transaction — receipt, invoice, online listing, or contract showing what was sold, for how much, and any description or specifications
• Communication records — every message between you and the customer, particularly any complaints, your response, and any remedy offers
• Evidence of the goods or service — photos of the condition at the time of supply, inspection reports, or service records
• Your remedy offer — documentation showing you attempted to fix the problem before the claim was filed
• Comparable standards — if the customer claims the product was substandard, evidence of what's normal for that product category at that price point

What the Referee Typically Orders

If the referee finds in the customer's favour, the order depends on the claim, evidence, and the Tribunal's statutory powers. The Tribunal can make monetary or work orders, including:

• A monetary order — for a refund or other proven loss where supported by the applicable law and evidence
• A work order — directing specified repair work where appropriate
• A dismissal order — if the claim is not established

The customer must support the remedy and loss claimed with evidence. The referee may separately order reimbursement of the successful applicant's Tribunal filing fee.

The NZ Disputes Tribunal Response Guide includes a response decision flowchart that helps you work through whether the CGA or CCLA applies, what remedy level is appropriate, and how to organise your evidence for the hearing.

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