Whenever you buy goods (e.g. clothing, a car or a stereo) or services (like a haircut or treatment at the dentist) from a shop or business, for personal or household use, you have legal rights which protect you if the goods are faulty, or the service is inadequate, or, in the case of a layby, ensure that you and the company you’re doing business with, agree on the terms.

So what do you want to know about?
An item I bought is faulty - can I take it back?
What about “seconds”?
What about goods on sale?
What about gifts?
I’ve changed my mind – can I have a refund?
What is a “cash appro”?
What can I do about faulty services?
How does layby work?
Are there rules about advertising things for sale?

An item I bought is faulty - can I take it back?
The Consumer Guarantees Act 1993 gives you rights when you buy goods that turn out to be faulty. It applies to goods you buy from a shop or trader which are normally for personal or household use such as clothes, food or stereos. It doesn’t cover goods you buy at an auction or in a private sale.

The Consumer Guarantees Act 1993 states that goods need to be of an acceptable quality. This means that goods should be fit for their normal purpose, safe, durable, free from minor defects and acceptable in finish and appearance.

If you find an item of clothing you’ve just bought has a fault, e.g. a rip or buttons missing, you have remedies under the Consumer Guarantees Act. If the fault is serious or can’t be fixed, eg a large hole in the clothing, you can return the goods and get a cash refund or a replacement. (You’re entitled to cash and you don’t have to accept a credit note.) If the fault can be fixed, e.g. a button is missing, you can ask the seller to fix the fault. This must be done at no extra cost to you and within a reasonable time. If the seller refuses to fix the fault you can return the goods and get a cash refund or replacement or get the fault fixed elsewhere and claim the cost from the seller.

What about “seconds”?
Seconds are goods which are sold with a flaw or fault. If they are clearly marked or you are warned there is a flaw, you can’t complain once you’ve bought the goods. If you find they have a different fault to that which you were made aware of, or if the fault wasn't pointed out to you at the time you bought the goods, you can ask for your money back, for a replacement, or to have them repaired, depending on the fault.

What about goods on sale?
Things bought on sale should still be of reasonable quality, match their description and do the job they’re designed for. The fact that the seller chooses to sell them at a lower price doesn’t affect your rights if they’re faulty.

What about gifts?
Goods you receive as gifts are still covered by the Consumer Guarantees Act, but the person who bought the gift should take it back because they are the one who has a contract with the shop. However, many shops will change or repair a gift even though they don’t have to.

I’ve changed my mind – can I have a refund?
If you simply change your mind about a purchase, for example you buy some jeans without trying them on and when you get them home you decide they don’t look good on, the shop doesn’t have to give you a refund.

Lots of shops will exchange things, or give you your money back but they aren’t legally obliged to. If you’re buying something and there’s a chance that you’ll need to change it, check with the seller first. You might also be able to take them “on cash appro”, or get an exchange card.

What is a “cash appro”?
Some shops will let you take goods on “cash appro” if you or your parents have a credit card – the shop will fill out a manual credit card form for the total amount of the goods, which the credit card holder signs. You get to take the goods home to try out for a certain length of time (usually a day or two) and the shop holds the credit card form without processing it. If the goods aren’t suitable, you can return them before the agreed deadline and the shop will rip up the credit card form.

What can I do about faulty services?
The Consumer Guarantees Act 1993 also ensures you have rights when you pay for services, such as a haircut, dry cleaning, photo developing, doctors and lawyers.

Once you have told the trader or service provider what service you expect and the trader accepts to do the job, then the finished job must meet your expectations. Any work must be done with reasonable skill and care. That is, the work must be at least as good as the work of a competent person with average experience in that type of work.

If there is a problem, you should be able to get the person who did the faulty work to fix it for you for free. If the problem is serious, you can get a refund.

How does layby work?
Layby is a popular way to buy goods when you can’t afford to pay for them all in one go. Your goods are kept at the shop while you pay for them, and no interest is added to the price. You agree to pay for them in installments, and you both agree how long it will take – a kind of contract between you and the shop. When you make the last payment you can collect the goods.

It’s a good idea to ask the shop for a layby receipt or docket which clearly lists the item/s you’re buying, plus the terms of the layby, and contact details for you and the shop. You should get another receipt each time you make a payment.

The shop must hold the goods for you unless you do not make payments as agreed. The price of the goods held on layby can’t be increased if new stock comes in at a higher price.

You can cancel your layby without giving a reason before you finish paying for it. You have the right to a cash refund, but the seller may keep some of your money to cover loss of value and selling costs/administration fee. An example of loss of value would be if you put a $200 coat on layby in winter and cancelled your layby in spring when all the winter coats were on sale for $150. You might lose the $50 difference, plus a bit more for the selling costs.

Are there rules about advertising things for sale?
The Fair Trading Act 1986 makes it illegal for anyone selling goods or services to treat you unfairly. It doesn’t cover private sales, just people who sell things for business (such as a shop).

They can’t:

  • Label a product in a misleading way
  • Put something in an advertisement that isn’t true
  • Tell you something about the goods that is false
  • Follow unfair practices.

The seller doesn’t have to deliberately mislead you. It’s enough that some people could have been mislead.

If you think you have a claim, talk to your local Citizens Advice Bureau (tel: 0800 367 222) about what steps you could take.

Under the law you have rights as a consumer. If you’re not sure of your rights a Citizens Advice Bureau or Community Law Centre can answer your questions for free. With your permission the Citizens Advice Bureau may approach retailers on your behalf.

Be prepared to take action over a faulty purchase or poor service. It’s your right. And be prepared to talk to the manager of the shop if the staff aren’t helpful.

Make sure you keep a copy of your receipts, guarantees and warranties, and a record of your discussions and agreements with retailers and service providers.

If you have a faulty item or get bad service, talk to the company involved first. If they won’t fix the problem, talk to your local CAB about what steps you can take next.

For leaflets explaining your rights as a consumer in more detail, contact your local Citizens Advice Bureau.

For more information:

[Last updated March 2003]