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Consumer rights & money

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Buying and selling privately

Overview

What to know before you buy goods privately

If you buy goods privately (rather than from a shop or other business), you’re not protected by the Consumer Guarantees Act 1993 or the Fair Trading Act 1986. For example, if you buy something from a garage sale, or from a private person on Trade Me or Facebook Marketplace, you’re not covered by the guarantees and protections under those Acts.

However, if you’re not covered by the Consumer Guarantees Act or the Fair Trading Act, you’re still covered under:

  • the Contract and Commercial Law Act 2017, and
  • the rules about contracts that have been established by past cases (“common law”).

What to know before you sell goods privately

If you are selling goods privately (i.e., not through a business) the Consumer Guarantees Act and Fair Trading Act do not apply. You’ll still have obligations to the buyer under the Contract and Commercial Law Act 2017 and the common law.

To avoid issues, you should make sure that you do everything you told the buyer you would (whether in writing or verbally). This includes making sure that:

  • you have a right to sell the goods, meaning that you own them and don’t owe anyone any money for them,
  • everything you told the purchaser about the goods is true,
  • the goods aren’t faulty – or if they are, you’ve told the buyer about the faults before they buy it, and
  • you deliver the goods to the person in the time agreed or in a reasonable time period.

What laws apply?

Contract and Commercial Law Act 2017, ss 135, 136

  • The common law – the established a set of rules saying what happens when a contract is broken. If a seller of goods or a supplier of services has not done what they said they would in your contract with them (which may be written or verbal), you might be able to sue them for breach of contract and get compensation.
  • The Contract and Commercial Law Act – the Act will automatically make the following things part of your contract with the seller (unless the contract explicitly says otherwise):
    • the seller has the right to sell you the goods,
    • no-one else (for example, a finance company) holds a security interest in the goods that the seller hasn’t told you about, and
    • the goods are the same as any samples the seller showed you, and they match any description you were given.

Can a private buyer and seller agree to contract out of the Contract and Commercial Law Act?

Yes. Unlike the Fair Trading Act and the Consumer Guarantees Act, you can agree with the seller that these protections don’t apply to your contract.

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Consumer protection

Where to go for more support

Legal information and support groups

Community Law

Your local Community Law Centre can provide you with free initial legal advice.

Find your local Community Law Centre online: www.communitylaw.org.nz/our-law-centres

Consumer Protection

The Consumer Protection website has useful information on a range of consumer topics. Consumer Protection is part of the Ministry of Business, Innovation, and Employment (MBIE).

Website: www.consumerprotection.govt.nz
Email: cpinfo@mbie.govt.nz
Phone: 0508 426 678 (0508 4 CONSUMER)

Consumer NZ

The Consumer NZ website provides a wide range of information on consumer issues and template letters you can use to write to traders to enforce your rights.

Website: www.consumer.org.nz
Email: info@consumer.org.nz
Phone: 0800 226 786 (0800 CONSUMER)

Commerce Commission

The Commerce Commission enforces the laws against misleading and deceptive conduct by traders (the Fair Trading Act) and the consumer credit legislation (the Credit Contracts and Consumer Finance Act). The Commission provides information on these areas on its website.

Website: www.comcom.govt.nz
Email: contact@comcom.govt.nz
Phone: 0800 688 5463

To make a complaint online: comcom.govt.nz/make-a-complaint
To read consumer rights in different languages: comcom.govt.nz/consumers/read-about-your-consumer-rights-and-business-responsibilities-in-another-language

Citizens Advice Bureau (CAB)

CAB provides free, confidential and independent information and advice.  See CAB’s website for valuable information on a range of topics.

Website: www.cab.org.nz
Phone: 0800 367 222
Facebook: www.facebook.com/groups/citizensadvicenz

Find your local CAB office: www.cab.org.nz/find-a-cab

Product safety

This agency oversees the safety of consumer products that are not food, medicines or road vehicles. Their website has information for consumers about safety standards, product recalls and using products safely.

Website: www.productsafety.govt.nz
Email: cpinfo@mbie.govt.nz
Phone: 0508 627 774

Products recalled: www.productsafety.govt.nz/recalls

FinCap and Money Talks

FinCap is a non-government organisation providing free financial mentoring services.

Website: www.fincap.org.nz
Email: kiaora@fincap.org.nz
Phone: 04 471 1420

MoneyTalks is a financial capability helpline operated by FinCap. The Financial Mentors offer free, confidential advice by phone, text, email and live chat.

Email: help@moneytalks.co.nz
Phone: 0800 345 123
Text: 4029
Live chat: www.moneytalks.co.nz

Motor Vehicle Traders Register

Before purchasing off a motor vehicle trader, check if they are registered.

Website: www.motortraders.med.govt.nz
Phone: 0508 MOTOR TRADERS (0508 668 678)

Buying a car privately

Search the PPSR register to see if there is any security interest registered against a vehicle. This can be done for a small fee by registering to check online

Website: www.ppsr.companiesoffice.govt.nz

Check to make sure a car that you’re considering buying hasn’t been listed with the police as stolen.

Website: www.police.govt.nz/stolenwanted/stolen-vehicles

Other tips for buying a car privately from YouthLaw: www.youtube.com/watch?v=aK8irFAn1as

Complaints

Disputes Tribunal

The Disputes Tribunal can deal with claims up to the value of $30,000.  It is less formal than a court and cheaper.

Website: www.disputestribunal.govt.nz/about-2
Phone: 0800 COURTS

Motor Vehicle Disputes Tribunal

The Motor Vehicle Disputes Tribunal can deal with claims up to the value of $100,000.  It can only deal with disputes relating to registered traders (or those that should be registered).

Website: www.justice.govt.nz/tribunals/motor-vehicle-dealer-disputes
Phone: 0800 268 787

Dispute Resolution Schemes

There are four dispute resolution schemes for consumers dealing with lenders and other credit providers. Contact the scheme your service provider has registered with.

  1. Financial Services Complaints

Website: fscl.org.nz
Phone: 0800 347 257
Participants list: fscl.org.nz/search-financial-service-providers 

  1. Insurance & Financial Services Ombudsman

Website: www.ifso.nz
Phone: 0800 888 202
Participants list: www.ifso.nz/complaints#find-a-participant

  1. Banking Ombudsman

Website: www.bankomb.org.nz
Phone: 0800 805 950
Participants list: bankomb.org.nz/the-complaint-process/bank-participant

  1. Financial Dispute Resolution Service

Website: www.fdrs.org.nz
Phone: 0508 337 337
Participants list: fdrs.org.nz/become-a-scheme-member/scheme-member-search

Utilities Disputes Commissioner

The Commissions helps with complaints about electricity, gas, water and some fibre services.

Website: www.udl.co.nz
Phone: 0800 22 33 40

Participants list: www.udl.co.nz/making-a-complaint/complaint-form

Also available as a book

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