Warranties & refunds

If you sell goods

You must fulfill certain conditions and warranties set out by the Competition and Consumer Act 2010 (CCA). Your goods must:

• be of merchantable quality-goods need to reach a basic level of quality given the price of the goods and any description that is provided with the goods
• be fit for the purpose or job that they are meant to provide and fulfill purposes made known to the consumer
• match any description or sample given to the consumer whether in promotional material, over the phone, in person, on a website or on labelling or packaging
• be free from defects and faults
• be clear of finance or encumbrances not disclosed to the consumer so that the consumer can have free title to the goods.

When you sell goods, you enter into a contract with the consumer. If you don't meet your obligations, you may have to provide a refund or replacement.

If you provide a service

If you provide a service you're obliged to carry it out with due skill and care. Make sure that any materials you provide as part of this service are fit for the purpose.

If you don't meet any of these obligations, you could have to repeat the service or pay for someone else to carry it out. The consumer may also be able to claim compensation for expenses incurred as a result, such as loss or damage. You may have to bear this cost.

When do I have to give a refund or replacement?

You must provide a refund, replacement or repeat service if you fail to meet your obligations under the CCA (outlined above).

You don't have to provide a refund if the customer doesn't have proof of purchase (eg. a receipt), has just changed their mind, if they have damaged the goods, or they knew about a fault beforehand (eg. factory seconds).