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Man using credit card - Source: ONE News -
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Buying an extended warranty gives you better protection, right? Wrong.
This was one of the gaps of knowledge identified in a Ministry of Consumer Affairs survey looking at New Zealander's understanding of consumer law.
Minister of Consumer Affairs Heather Roy says 66% of the survey's 1,000 respondents who answered a question on extended warranties believed they were better protected if they took out theses policies when buying a product.
"People don't have an understanding that buying an extended warranty doesn't actually give you any greater protection than the Consumer Guarantees Act does," says Roy.
The survey also found that many people did not know that goods purchased from a trader must last for a reasonable amount of time, and that stores are obliged to repair faulty goods free of charge.
The most 'rights aware' were consumers in the 30-65-year-old age group. Roy says particular effort must be made to educate under 30s, especially women, and ethnic minorities whose first language may not be English.
The report says those in lower socio-economic groups and over 65s were also less able to assert their consumer rights.
Despite these gaps in knowledge, Roy says Kiwis are becoming better informed about their consumer rights when compared with a similar study undertaken in 2005.
"The survey's pretty encouraging. It shows that around 80% of people are confident that they will be protected by a consumer law if something goes wrong with a transaction that they participate in," she says.
The survey attributes the improvement in rights awareness to the increase of information and consumer advice through television programmes.
"[It] may partly be a result of consumer awareness and conversation generated through these sources, for example, through consumer rights segments on TVNZ's Breakfast and Close Up," the report says.
Roy also says that during a recession people tend to shop around more and make themselves more aware of their rights.
In a bid to improve consumer rights, Roy has been promoting a "one law, one door" policy since taking up her role as Minister.
'One law' refers to reviewing and rationalising the approximately dozen consumer laws.
Nearly 80% of those polled were aware there are laws in New Zealand stating the rights of consumers, with 67% of people able to name at least one piece of legislation such as the principles based Consumer Guarantees Act and the Fair Trading Act.
But Roy says beyond these two main acts there are "rats and mice", such as the Auctioneers Act dating back to 1929, that are long overdue for review.
She says 'one door' aims to have one portal people can seek advice from if they have a difficulty with a transaction.
