NZ Consumer Guarantees Act (CGA) & Fair Trading: What Your Online Store Must Have

Under the CGA, every consumer who purchases personal goods or services from a New Zealand business is automatically entitled to statutory guarantees that cannot be excluded or contracted out of:

• Acceptable Quality: Goods must be fit for common purpose, free from minor defects, safe, and durable.
• Fit for Particular Purpose: If a customer discloses their intended use, the product must satisfy that purpose.
• Match Description: Goods must accurately match online photos, measurements, and specifications.

> The Statutory Remedy Framework: If a product fails, the retailer must offer a remedy: Repair, Replacement, or Refund. For minor faults, the retailer chooses the remedy; for major faults that cannot be easily repaired, the consumer has the legal right to demand a full refund or replacement.

The Commerce Commission actively investigates misleading refund policies. Avoid these unlawful statements:

Change of mind is the only scenario where retailers are not legally required to refund, provided the product is not faulty.

The Fair Trading Act prohibits misleading or deceptive commercial conduct:

• Genuine Reference Pricing: You cannot mark up an item to $100 for two days simply to advertise it as 'Was $100, Now $49'. Sale prices must compare against a genuine previous selling price.
• Delivery Timeframes: If you advertise '1—2 day dispatch', you must have reasonable grounds to meet that standard.
• Product Origin Claims: Labeling imported goods as 'Made in NZ' or 'Pure Kiwi' when only minimal assembly occurred violates the Act.

Section 43 of the CGA allows businesses to 'contract out' of the Consumer Guarantees Act only when both parties are in business, the goods are acquired for business use, and the agreement is in writing.

If you operate a wholesale or B2B supply store, include an explicit clause in your terms stating that business purchasers agree the CGA does not apply.

Infynt ensures every e-commerce website we build features legally compliant policy templates tailored to New Zealand law. We implement clear, unambiguous checkout consent checkboxes, transparent shipping and return portals, and compliant order confirmations that protect your enterprise while building trust with Kiwi shoppers.