If the problem can be fixed, you can ask the trader or provider to do this. They must fix the problem within a reasonable time and at no extra cost to you.

If you bought goods, the trader can choose to fix the problem by replacing the goods, repairing the goods, or refunding the purchase price.

You can also claim compensation for “reasonably foreseeable consequential loss” (that is, loss or damage that is caused by the problem). For example, you may need to claim the cost of a hire car while a faulty car is being repaired.

If the trader or service provider refuses or fails to fix the problem, you can either:

• reject and return the goods and get a cash refund or replacement (you can insist on a cash refund, but you can choose to accept a replacement instead), or
• cancel the contract for services, and get a refund of the money you’ve already paid.

Alternatively, you can get the failure fixed elsewhere and claim the reasonable costs of doing so from the trader/service provider.

You can also claim compensation for reasonably foreseeable loss caused by the problem with the goods or services, or caused by their failure to fix the problem.

If the failure is substantial or cannot be fixed, you can either:

• for goods:
  • reject and return the goods and get a cash refund or replacement (you can insist on a cash refund, but you can choose to accept a different remedy such as a replacement), or
  • choose to keep the goods, and claim compensation for any reduction in the value of the goods.
• for services:
  • cancel the contract for the services, and get a refund of money you have already paid, or
  • claim compensation from the supplier for the reduction in the value of the services provided.

You can also claim compensation for reasonably foreseeable loss caused by the problem with the goods or services (for example, the costs of cleaning carpet that has paint spilled on it by a painter who did not put down drop sheets when painting).

Note: A shop credit is not a refund. If you are entitled to a refund, you are entitled to get your money back.

Consumer Guarantees Act 1993, s 21

A “substantial failure” is when:

• a reasonable consumer wouldn’t have bought the goods or services if they were fully aware of the problem
• the goods are different in a significant way from the trader’s description, or from a sample or demonstration model
• the goods or products of the service are substantially unfit for their usual purpose, and it cannot easily be made fit for purpose within a reasonable time
• the goods or products of the service are unfit for a purpose or a particular result that you told the trader/service provider you wanted them for, or that you were told they’d be fit for, and they cannot easily be made fit for that purpose within a reasonable time (for example, if you tell the trader that you want a laptop to do a certain function and the laptop they give you cannot do it), or
• the goods or the products of the service are unsafe.

Consumer Guarantees Act 1993, ss 13–14, 25–27

You have rights against the manufacturer if:

• the goods aren’t of acceptable quality
• the goods don’t match the manufacturer’s description
• repair facilities and spare parts aren’t made reasonably available, or
• the goods don’t comply with the manufacturer’s warranty.

You can claim compensation from the manufacturer for:

• the loss in value of the goods because of the fault (called “direct loss”). Direct loss is calculated by looking at the difference between the price of the goods and the value of the goods as a consequence of the fault, and
• any loss or damage that is a consequence of the problem with the goods (called “reasonably foreseeable consequential loss”) – for example, the cost of renting a replacement car while a faulty car is being repaired.

If goods come with a manufacturer’s warranty to repair or replace goods, you must give the manufacturer a reasonable amount of time to repair or replace before you make a claim for compensation.

Note: Your rights against the trader are greater than your rights against the manufacturer. However, you might choose to make a claim against the manufacturer if, for example, the trader has gone out of business or is difficult to deal with. Traders can’t avoid responsibility under the Consumer Guarantees Act by telling you to go to the manufacturer. It’s your right to choose who you deal with.

Consumer Guarantees Act 1993, s 20