- Do you know your rights if a customer changes their mind about a product they bought?
- Have you provided staff with steps on how to deal with problems with products or services?
- Did you know it’s against the law to have signs or tell a consumer there are ‘no refunds’ or ‘no refunds or exchanges on sale items’?
Consumer rights with products and services
If a customer buys a product or service from your business, they are entitled to a remedy if the product or service hasn’t met one of the basic rights under consumer guarantees. Remedies include a repair, refund or replacement.
Businesses must not tell customers to take the problem to the manufacturer or importer.
Your business has the right to assess the product or service before providing a remedy.
Customers are not always entitled to a remedy. For example, you don’t have to provide a repair, refund or replacement if the customer got what they asked for but simply changed their mind, found the product cheaper somewhere else, or decided they didn't like the purchase or had no use for it.
When customers are entitled to a remedy
What remedy customers are entitled to generally depends on:
- whether the problem is with a product or a service
- the seriousness of the problem, whether it’s major or minor.
If your business has a ‘change of mind’ policy, you must honour it.
Example of a major problem with a product
A consumer buys an electric blanket, which stops working after the first use due to faulty wiring. This would likely be a major problem, allowing the customer to choose a replacement or a refund.
Example of a major problem with a service
A small business asks a technician to increase their store computer’s memory capacity within 1 week. When installing a new drive, the technician damages the computer. Repairs will take 4 weeks, but the small business needs the device within the week. The small business can choose whether to continue or cancel the contract.
Example of a minor problem with a product
A small business buys a fridge and finds that the door has a scratch on it. This defect doesn’t impact the safety or functioning of the product. This would likely be a minor problem, and the supplier can choose how to remedy the problem
Example of a minor problem with a service
A consumer hires a carpenter to build a carport to cover their vehicle. The carpenter builds a structure that isn’t long enough to cover the car. Although they haven’t met the consumer’s request, the carpenter is able to fix the problem within a reasonable time. The additional work would need to be done free of charge.
Your businesses can’t take away consumer rights
It’s illegal for businesses to rely on store policies or terms and conditions which deny consumer rights. For example, policies which say ‘no refunds’ or ‘no refunds or exchanges on sale items’.
Repair, replace, refund problem solver
If you're not sure whether the consumer guarantees apply to a specific purchase, try our repair, replace, refund problem solver.
Learn more about repair, refund, replace or cancel.