A Right to Repair under the Consumer Guarantees Act articles

The Consumer Guarantees (Right to Repair) Amendment Bill has been considered in parliament. If this Bill is passed manufacturers will have to provide repair parts, facilities, and information to consumers.

The Bill aims to promote a circular economy, mitigate climate change and protect biodiversity (by waste reduction etc.). It also aims to reduce household expenses by allowing consumers to repair rather than replace products.

What is changing?

As it stands under section 42 of the Consumer Guarantees Act (CGA), manufacturers can opt out of providing repair facilities and parts if they inform the consumer at the time of purchase. The new Bill will remove this opt-out option.

The new rules will require manufacturers to ensure that repair parts and facilities are available. Additionally, manufacturers will have to provide the latest version of any information, spare parts, software, and tools needed for diagnosing, maintaining, or repairing the goods within 20 working days of a consumer’s request.

Consumers will be able ask suppliers to repair defective goods instead of replacing them. If the supplier won’t be able to repair the goods in a reasonable time, the consumer can choose to get a replacement, have the goods repaired elsewhere and claim the costs, or reject the goods – and look for a refund or compensation.

These changes to the CGA are similar to requirements and proposals in the UK and Australia. Importantly for consumers to enforce their rights under the CGA consumers would need to take manufacturers to a Disputes Tribunal or court for some recompense. This may be a deficiency in the Bill as leaving it to consumers to take enforcement act will likely not be effective.  A likely solution is for the Bill to be part of the Fair Trading Act 1986 and overseen by the Commerce Commission.

How will manufacturers be affected?

If you manufacture goods, even if you are not in New Zealand, the proposed changes will increase your obligations to provide repairs. Manufacturers, including those who export goods into New Zealand, will need to have repair facilities available for a reasonable period after supply. What is “reasonable” is left unstated in the Bill but considerations as to price, complexity and the general circumstances surrounding supply and repair of the goods will need to be considered.

For now, the Bill has been referred to the Economic Development, Science and Innovation Committee for consideration. Any updates will be reported.