Just under half of all New Zealand consumers have encountered a problem with a product or service over the past two years, according to the Ministry of Business, Innovation and Employment’s latest Consumer Survey. Reported issues ranged from a bath screen that shattered and a ladder leg that buckled to pieces of metal found in ice cream, highlighting persistent quality concerns in the retail and service sectors.
Consumer Complaints and Common Product Issues
The survey reveals that 44% of consumers experienced a problem with a purchase in the two-year period, while a quarter of respondents reported that they had been deceived by a business. The most frequent complaints focused on product or service quality, or items failing to match expectations. Motor vehicles purchased from private sellers generated the highest volume of issues, followed by groceries and rest home real estate.
Consumer services manager Simon Gallagher noted that shoppers achieve better outcomes when they exercise their rights. “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,” Gallagher said. According to the data, three-quarters of people who took action successfully achieved a resolution, and awareness of dispute resolution services increased compared with 2024.
Understanding Consumer Rights and the Consumer Guarantees Act
While awareness of overarching consumer protection laws remains very high at 95%, the survey uncovers a significant gap regarding actual consumer comprehension. Only half of all shoppers state they have a moderate or good understanding of their rights, and tested knowledge of consumer rights has declined since 2024. Additionally, a record 61% of New Zealanders agree that the country has adequate laws to protect people from being misled or cheated by businesses, though less than half express trust that information provided by salespeople is fair and accurate.
Under the Consumer Guarantees Act, businesses must ensure products are of acceptable quality, fit for particular purposes, match their descriptions, and are reasonably priced and delivered on time. Services must be carried out with reasonable care and skill within a reasonable timeframe and at a fair price. When failures occur, businesses are required to remedy the issue by repairing the item, replacing it with an identical model, or providing a refund at no charge.
Consumers who face delays or cannot secure a fix within a reasonable time may have the fault repaired elsewhere and request reasonable reimbursement. Furthermore, customers can seek compensation for additional loss or damage suffered as a result of a product failure, such as spoiled food when a refrigerator breaks down. However, the legislation does not require businesses to provide remedies if a customer simply changes their mind, misuses or damages a product, knew about a fault beforehand, or approached an outside repairer before contacting the original seller.
Next Steps and Dispute Resolution Pathways
To address the drop in tested consumer knowledge, authorities plan to focus efforts on building public capability and confidence. Gallagher stated that officials will use the survey results to collaborate with partners like the Commerce Commission and consumer sector organizations to improve available tools and information.
For shoppers facing difficulties, the recommended first step is to complain directly to the business involved. If individuals encounter a roadblock with the initial seller, alternative pathways such as the disputes tribunal or other complaint systems remain available to help secure a resolution.