Consumer Guarantees Act 1993
Consumer Guarantees Act — what businesses must understand
The Consumer Guarantees Act gives consumers automatic rights when goods or services don't meet certain standards. These rights cannot be contracted away.
📋 Consumer Guarantees Act 1993 — automatic statutory guarantees
Who does the CGA apply to?
Goods and services supplied to consumers in trade
The CGA applies when a business supplies goods or services to a consumer. A consumer is a person who acquires goods or services for personal, domestic, or household use — not for business purposes. It applies whether the sale is in-store, online, or by any other means.
The CGA does not apply to goods or services acquired for business use — those transactions are governed by the Fair Trading Act and contract law.
Guarantees for goods
- Acceptable quality: goods must be safe, durable, free from defects, acceptable in appearance, and fit for their normal purpose
- Fit for purpose: if you tell the seller what you need the goods for, they must be fit for that purpose
- Match description: goods must match the seller's description
- Match sample: goods must match any sample shown
- Right to sell: the seller must have the right to sell the goods
- Price: if price is not agreed, it must be a reasonable price
Guarantees for services
- Services must be carried out with reasonable care and skill
- Must be fit for any particular purpose the consumer made known
- Must be completed within a reasonable time (if no time agreed)
- Must be supplied at a reasonable price (if no price agreed)
Remedies — what consumers are entitled to
For goods — depends on severity of failure
Minor failure: the seller can choose to repair, replace, or refund.
Major failure (cannot be fixed, or would take too long, or consumer would not have bought if they'd known): consumer can choose to reject the goods and get a full refund, or keep them and get compensation for the reduction in value.
For services — consumer can ask for remedy or compensation
If a service fails to meet the guarantees, the consumer can require the supplier to remedy the failure or get a refund. If the failure is substantial, the consumer can cancel the contract.
Cannot contract out of the CGA
Terms that attempt to exclude or limit CGA rights in consumer transactions are void. A clause saying "no refunds" or "sold as is" in a consumer transaction does not remove CGA rights. If the goods are faulty, the consumer is entitled to a remedy regardless of what the contract says.
Exception: business-to-business transactions can contract out of the CGA.
Frequently asked questions
Does the CGA apply to second-hand goods?
Yes, to goods supplied in trade. Second-hand goods must still be of acceptable quality — though 'acceptable' accounts for the age and condition of the goods. A car dealer selling a 15-year-old car cannot be held to the same standard as one selling new vehicles.
How long do CGA rights last?
There is no specific time limit in the CGA. Rights last for as long as the goods could reasonably be expected to last — which depends on the type of product. An expensive appliance might have CGA rights for 5+ years; a cheap consumable product much less.
What if the manufacturer offers a warranty — does that replace CGA rights?
No. A manufacturer's warranty is in addition to CGA rights, not instead of them. CGA rights are against the seller. Warranty claims may go to the manufacturer. The consumer can choose which avenue to pursue.
Can a business charge for repair under CGA?
No. If goods fail to meet the guarantees, the supplier must remedy the fault at their cost. The consumer should not have to pay for a repair that is required to make the goods meet the CGA standard.