The Commerce Commission is warning people that in some cases they may not be able to get refunds or exchanges for gifts.
Commission Chairman Dr Alan Bollard said that shops can refuse to exchange goods or give refunds if people simply change their minds or want to exchange a gift they were given.
"Many shops will give exchanges or refunds when people change their mind or a gift was not right," Dr Bollard said. "But they do not have to and you should ask what their policy is before buying a gift."
However, if a shop sells damaged goods or ones which do not perform to specifications, then it is required under the Consumer Guarantees Act to provide remedies to customers.
Where a problem is serious or it cannot be fixed, then the customer can choose between a refund, a replacement or compensation.
Where the problem is not serious and it can be fixed, then the shop can choose to either repair or replace the goods. It must do this free of charge and within a reasonable time.
If it is not done in a reasonable time, then the customer can choose instead a refund, a replacement or to have repairs carried out by someone else and to claim the cost back from the shop.
If there is any problem it is always the customer's choice whether they claim against the seller or the manufacturer.
The Commission publishes a free booklet, Refunds, Returns, Guarantees and Warranties, which explains the links between the Consumer Guarantees Act and the Fair Trading Act. While it is a guide for business people, it should also be useful for consumers.
It lists illegal signs and business practices which may break the law, and explains guarantees and remedies that must be provided. Copies are available from Commission offices, Ministry of Consumer Affairs consumer advice offices, Link Centres and Citizens' Advice Bureaux.
Media contact: Communications Officer, Vincent Cholewa
Phone work (04) 498 0920, home (04) 479 1432
Background
The Commerce Commission enforces the Fair Trading Act, which prohibits false or misleading claims. It generally applies before a sale is made.
The Consumer Guarantees Act generally applies after a sale is made. It sets guarantees or minimum standards that must be meet for goods and services normally bought by consumers. It also provides remedies for failure to meet the guarantees.
It is a breach of the Fair Trading Act to mislead someone about the guarantees and remedies they are entitled to under the Consumer Guarantees Act. It is also a breach of the Fair Trading Act to illegally try to contract out or opt out of providing customers with guarantees and remedies they are entitled to.
