Consumers, manufacturers disagree on expectations of appliances

Thursday, 21 June 2018

A lack of detail in the Consumer Guarantees Act means shoppers, retailers and manufacturers are left arguing about what is 'reasonable' to expect of their purchases.

The Consumer Guarantees Act allows consumers to ask for a replacement, repair or refund of an item if it does not last as long as reasonable.

But there are no clear guidelines as to what that life span should be.

Consumer NZ head of testing Paul Smith said shoppers had a different perspective to manufacturers and retailers. Many shoppers expected things to last a significant amount of time, he said.

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Recent Consumer research showed that, assuming no repairs were carried out, 36 per cent of people expected a washing machine to last 10 to 15 years.

Allowing for some repair, three-quarters of people expected to get at least 10 years' use of the machine.

Manufacturers argued that much shorter lifespans should be expected.

Graeme Watt, general manager for major appliances at Harvey Norman, said it created a lot of 'grey areas' for shoppers and retailers to navigate.

'That a product is fit for purpose and lasts a reasonable amount of time are two cornerstones of the act. It's disappointing there are not clear rules for us all to work to.'

He said something such as a washing machine could be expected to last longer if the customer bought the right size and type of machine for their circumstances, such as the number of people in the household.

'An entry-level product that you use a lot will have a much different outcome to the product you should have bought. You have more chance of a product lasting for a reasonable period if you buy the right product.'

Smith said modern appliances and whiteware did not last as long and when things went wrong it was much harder to fix them.

Research had shown that 10 years ago someone could take a washing machine apart and get to the bearings and other parts that were likely to malfunction.

'Now they are sealed off so when it goes wrong it's really difficult to repair. That's shortening the life. Manufactures said 'look at the price of the product compared to the price index and inflation, you're buying it for a less than you were'. They're arguing that they can't make it as robust as they used to.'

Smith said it was an issue with high-tech equipment, too, because while something such as washing machine clearly was working or was not, items such as phones or smart TVs could become obsolete or unsupported before they failed.

Smith's colleague, Hadyn Green, said: 'A phone could last a decade but it'd be hideously out of date and likely unsafe to use from an information-security point of view.'

Watt said it would be useful for the act to allow for pro-rata compensation.

If someone expected a washing machine to last a set number of years, and something went wrong just before their expectation was met, the retailer might baulk at offering a full refund, particularly if they did not agree on what was reasonable.

But if they could refund a percentage of the purchase price to reflect the years where it did perform as expected, that would be a better solution, he said.

'It would be great if the act had more detail. At the same time we have empathy with our customers and want to ensure they are looked after. Most people have very reasonable expectations.'

How long should it last?

Life expectancy (in years):

Dishwashers: 15+

Refrigerators: 15+

Ovens and stoves: 15+

Microwaves: 8+

Kettles and toasters: 5+

Clothes dryers: 15+

Vacuum cleaners: 12+

Washing machines: 10+

Dehumidifiers: 10+

Heat pumps: 10-15 

Cameras: 5-10

Computers: 5

Source: Consumer NZ