By Claire Mansell - 23 Jan 2014
Many of us have taken advantage of the sales over the summer
holidays. But what happens when the bargain of the century turns
out to be a lemon? Changes to the Consumer Guarantees Act which
come into force in June will provide further protection for
consumers but may pose challenges to business owners.
Firstly, the new law will ban retailers from making
unsubstantiated representations about their
products/services. A retailer can't make a representation
about a product or service without reasonable grounds. This
will apply regardless of whether or not the representation is false
or misleading.
Secondly, standard consumer contracts can no longer include
unfair terms. This will apply to standard consumer contracts where
the consumer has no opportunity to negotiate terms. Unfair terms
are terms that:
- would cause significant imbalance in the parties' rights
- are unnecessary, and
- harm the consumer.
It is important to note that only the Commerce Commission will
have the power to prosecute wayward businesses under these
provisions.
Contact us if you've recently been dealt a lemon and would like
advice on how to enforce your rights under the Consumer Guarantees
Act.
Contact
Claire
Mansell