What should a trader do if a consumer requests a refund due to a faulty product?

When a consumer requests a refund for a faulty product, it is essential for the trader to assess the claim and determine if a refund is warranted. Under New Zealand Consumer Law, specifically the Consumer Guarantees Act, consumers have the right to request a remedy for defective goods. If the product does not meet the guarantees provided, such as being of acceptable quality or fit for purpose, the trader must evaluate whether the claim is valid.

By assessing the claim, the trader ensures they follow legal obligations and treat consumers fairly. This process may involve examining the product to confirm its faultiness and understanding the specific circumstances of the complaint. If the product is determined to be faulty, the trader is obligated to provide a refund, repair, or replacement, depending on the situation.

In contrast, ignoring the request would violate consumer rights and could lead to further legal repercussions. Immediately offering a replacement without assessing the claim could also be premature, as the trader may not be aware of the consumer’s rights under the law or the specific nature of the complaint. Offering store credit instead of a refund may not satisfy the consumer’s request if they are seeking a cessation of the transaction and a return of their money. Thus, thoroughly assessing the claim before taking action ensures compliance with consumer law and