The top issues consumers are complaining about and what you can do about it

Tuesday, 9 May 2023

It’s a tough time to be a consumer when prices are rising.

Consumer NZ fields thousands of complaints every year about consumers feeling ripped off, frustrated by a service they’ve received, and just plain baffled by some retailing practices.

These are the most-complained about consumer issues it has dealt with so far this year – with a common message for consumers faced with such headaches to brush up on their rights.

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Consumer Guarantees Act

Issues with the Consumer Guarantees Act (CGA) came out on top of the list.

Consumer NZ’s communications and campaigns adviser, Abby Damen, said this typically involved consumers requesting repairs and refunds for a faulty or failed product under warranty, but retailers arguing the warranty no longer applied.

This was despite the fact the CGA being clear that sellers cannot contract their way out of the act, such as by trying to apply a separate warranty.

The act provides a series of guarantees to consumers including that goods need to be a reasonable price and acceptable quality.

It’s not just bricks and mortar stores who don’t appreciate their obligations under the act. “There’s also a lot of ongoing retailer-ignorance about the CGA obligations of online retailers,” Damen said.

Consumer’s best advice was to know your rights under the CGA.

“Don’t be fobbed off by a retailer telling you your product is out of warranty.”

Building

The service provided by tradies is another significant area of consumer unhappiness, “whether it’s simply that they’re not doing the job they’ve been contracted to do, and in other cases, not even turning up”, Damen said.

“When it comes to renovations and new builds, cost overruns are a very common theme.”

Consumer’s advice: do your homework before hiring someone.

“Ask for recommendations and references and look at online reviews. Also, make sure you understand what is included in the price, what isn’t, and the timeframes.”

Insurance headaches

The time it takes to access insurance assistance has been a significant sore-point with the recent run of weather-related disasters across large parts of the country.

The rush of claims after the Auckland Anniversary floods and Cyclone Gabrielle had caused exceptional challenges for many of those dealing with the disasters’ aftermath.

Consumer pointed out that a free government service exists to help those who are struggling with getting satisfactory insurance settlements arising from the recent climate disasters.

The New Zealand Claims Resolution Service (NZCRS) exists to provide free, independent support to those struggling with the claims process.

Dodgy grocery prices

Consumer NZ has continued gathering evidence of dodgy specials and mismatched prices at the supermarket, at a time when shoppers are both unhappy and stressed by the cost of living; particularly the cost of their essentials, like groceries and fuel.

Its advice to anyone who comes across questionable prices, such as “specials” which are actually dearer than the normal ticket price for a product: report the practice to Consumer, or Commerce Commission if you have evidence of a consumer law being broken.

Travel

Travel is another subject of regular complaints to Consumer NZ – in particular, changes to Air NZ’s international flights, and ongoing changes to schedules which leave people stranded and not clear on their rights.

Since airlines don’t have to advise travellers of what those rights are, Consumer’s advice is to read up on them yourself.

Consumer has also received an increase in complaints about cancelled ferry sailings after the recent run of ferry breakdowns and weather problems, which have left customers out of pocket and in some cases stranded, with no other transport options available. The Consumer Guarantees Act should apply here too.

Vehicles

“We get a significant number of complaints about cars – mostly mechanical issues that dealers won’t fix, despite the Consumer Guarantees Act applying,” Damen said.

Consumer NZ put out a warning this week against “dodgy car finance deals” in which fees and expensive add-on insurances leave used car buyers deep in debt.

It investigated the case of a Wellington man who bought a car worth $7000 using a loan from Auckland-based Go Car Finance that would have ended up costing him $30,000​.

The advice is the same again:know your rights under the CGA and do your homework before purchasing a car.