By Melissa Higham - 20 Jan 2016
Do you and your staff know the rules regarding consumer rights
and guarantees in New Zealand? The cost of not knowing can be high
as Harvey Norman operators recently learned.
Ten Australian Harvey Norman franchisees have been fined
AUD286,000 for making false or misleading representations about
consumer guarantees.
One franchisee stated it had no obligation to provide a remedy
where goods were not of acceptable quality. It directed the
consumer to pursue the manufacturer's warranty directly with the
manufacturer. The franchisee also stated it could not assist
further unless the consumer paid for some or all of the cost of
repair.
It appears this franchisee was not aware that all products sold
in Australia come with a guarantee imposed by law that they will be
of acceptable quality. The same applies in New Zealand. The law
requires that faulty products must be repaired, replaced or a
refund provided by the retailer. Telling consumers something
different breaches the law.
Regardless of the size of your business, if you are a retailer,
it is crucial you and your staff understand your obligations to
consumers and what rights consumers have. Your terms of trade,
staff training and returns procedures must reflect those consumer
rights.
Our commercial team are specialists in the area of consumer
rights. Contact them today for expert advice on consumer law.
Contact
Melissa
Higham