The leg of a ladder that buckled, a bath screen that shattered and ice cream with pieces of metal in it were some of the problems New Zealanders have encountered in the past two years with items they've purchased.
Susan Edmunds of RNZ
The Ministry of Business, Innovation and Employment's latest Consumer Survey shows that just under half of all consumers reported having a problem with a product or service in the past two years.
"While 44% of consumers have experienced a problem in the past two years, the survey also shows that when problems occur, consumers who understand their rights are more likely to take action and achieve a resolution," consumer services manager Simon Gallagher said.
A quarter of consumers said they had been deceived by a business.
The most common problems were related to the quality of a product or service, or the product or service not being what was expected.
The largest number related to motor vehicles bought from private sellers, followed by groceries and rest home real estate.
Gallagher said people who took action when they had a problem were often able to resolve it.
"Three-quarters achieved a resolution, while awareness of dispute resolution services increased compared with 2024.
"It's also encouraging to see that awareness of consumer protection laws remains very high, with 95% of New Zealanders aware that consumer protection laws exist. Additionally, a record 61% agree New Zealand has adequate laws to protect consumers from being misled or cheated by businesses.
"The survey highlights an important gap between awareness and understanding. While most consumers know these protections exist, only half say they have a moderate or good understanding of their rights, and tested knowledge of consumer rights has declined since 2024."
Thirty per cent said they did not take action because they did not think it would solve the issue.
"Kiwis get better outcomes when they know their consumer rights… It's an interesting system where people actually develop their capability sometimes by having the issue. The real challenge for us is that tested knowledge has declined. So we'll be focusing some effort into there about building that capability and helping consumers feel confident raising their issues with businesses and understanding that there is persistence required, but also understanding there are resolution pathways available to them.
"We will be using the results to work with our partners like the Commerce Commission and others in consumer sector organisations, to continue improving the information and tools we have available," Gallagher said.
Less than half of consumers said they would trust that the information given by salespeople was fair and accurate.
What can you do if you have a problem?
Gallagher said anyone who had a concern should complain to the business involved in the first instance.
He said people should understand their rights under the Consumer Guarantees Act, which requires businesses to sell products that are of acceptable quality, fit for purpose, match the description, are reasonably priced and delivered on time.
Services must be carried out with reasonable care and skill, have to be fit for a particular purpose, carried out within a reasonable time and charged at a reasonable price.
Businesses can remedy a problem by repairing or replacing a product with an identical model, or providing a refund. This has to be provided at no charge and, again, within a reasonable time.
Consumers who are not able to get resolution from the business within a reasonable time can have the fault fixed elsewhere and request a reasonable payment to cover their costs.
If there is no remedy available, the customer can ask for a refund or replacement or keep the faulty item but get compensation for the difference in value.
Consumers can also make a claim for compensation for any additional loss or damage suffered because of the failure, such as food that spoiled if a fridge stopped working.
Businesses do not have to give a remedy if a customer changes their mind, uses a product more than is reasonable, damages a product, misuses it, knew about the fault, took an unreasonable amount of time to get it fixed or went to another repairer before contacting the original sellers.
Gallagher said the CGA relied on consumers exercising their rights first.
He said if people "hit a roadblock" with the initial business, there were other remedies available to them, such as the disputes tribunal or other consumer-based complaint systems. "It's actually the confidence to take action is the bit that needs to be continually reinforced."
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