Christmas is a common time for people to be spending, however the Ministry of Business, Innovation and Employment says consumers need to be wary of some of the shopping pitfalls this holiday season.
MBIE warns that a large number of consumers are unaware of their rights and should brush up on this over the holiday season.
These are ten of the most common consumer problems that shoppers should be aware of around Christmas.
Know your rights when shopping online
Online shopping can be a great way to sort Christmas presents, but it's much harder to judge quality, and can be more difficult to sort out problems, warns MBIE. Tips for avoiding the common online pitfalls include reading feedback on sellers and businesses, buying from reputable sites, shopping around and keeping your personal data secure. If it sounds too good to be true, it probably is.
One of the most common gifts over Christmas, and often to avoid giving an unwanted present, are vouchers and gift cards. Although an easy way to solve the issue of hard-to-buy-for friends and relatives, these too come with a warning. Terms and conditions can vary significantly between different retailers so always read these before buying. In most cases, no change is given from a voucher, and always be wary of the expiry date. If you lose a gift voucher, the business doesn't have to replace it so it's a good idea to get an email receipt and keep a record of all your purchases.
Shoppers don't have to accept a product that does not work, is not safe, or is not of acceptable quality. Photo / Christine Cornege
Door knockers
The Christmas period often brings an increase in door-to-door salespeople and although most are legitimate, it pays to be cautious of those that might just be taking advantage of vulnerable people in the holiday season. According to MBIE, minimising your risk can be as easy as making sure the terms and conditions are clear, including price, delivery costs, date of delivery, returns and warranties. Use your credit card to make purchases, so you can apply to your bank for a chargeback if there are any problems. A chargeback reverses the transaction. Don't be pressured into buying something you don't actually want, and remember you can change your mind and cancel within five working days and get a refund.
All I want for Christmas is something that works
One of the best things you can do this Christmas is to familiarise yourself with your rights as a consumer. Shoppers don't have to accept a product that does not work, is not safe, or is not of acceptable quality. Retailers are also obligated to remedy issues with faulty products rather than referring consumers to the manufacturer. The same applies to services - if a service is poorly done or has taken too long, go back to the provider about the issue as soon as possible.
Unwanted Christmas presents
If you change your mind about a gift or decide you don't want it, the retailer is under no legal obligation to provide a refund or exchange MBIE says. They also don't have to return or swap a product without proof of purchase, however if the product is damaged or faulty, there is an obligation to remedy the issue. Some retailers are open to returns or exchanges with proof of purchase if a product is not faulty, so it pays to keep receipts for presents. A number of retailers will also include an exchange card for gifts. It pays to ask whether the retailer will put one in if they don't offer.
Christmas is a time to celebrate, but be wary of scammers, particularly cold-callers, offering amazing deals on products or a chance to win hundreds of dollars worth of prizes. Some of the more recent scams picked up by MBIE are cold callers claiming to be from a government department or society asking for personal information such as bank details so they can deposit a large sum of money. Other issues have included consumers being sent emails purportedly from Briscoes offering hundreds of dollars worth of Briscoes vouchers. Banks and government departments will never email, text or call to ask for money says MBIE, so if you receive a similar message, it is likely to be a scam.
Christmas can be an expensive time of the year so spending within your means is important. Photo / Dean Purcell
Extended warranties
Extended warranties can be purchased as additional protection on goods or services, however it is important to remember that goods and services are also covered under the Consumer Guarantees Act, which states that goods have to be of acceptable quality, last for a reasonable amount of time and be fit for purpose. There is no time limit on these guarantees. Extended warranties can be most useful for goods bought for a commercial purpose such as a vacuum cleaner for your business, but less so for goods you are likely to replace before the extended warranty runs out.
Christmas overspending
Christmas can be an expensive time of the year so spending within your means is important. Taking time to make an informed decision before borrowing money is a good idea. There are a number of do's and don't's and potential pitfalls to avoid when borrowing money so be sure you clearly understand the terms and conditions, and are not borrowing more than you can afford, if you do need to borrow money.
Splish splash safely
New Zealand summers are often spent around water - at the beach or in a pool, but MBIE says to remember not all toys are designed for water safety. Aside from always keeping an eye on children around water, there are things to check when buying pool toys or inflatables. Toys which might be appropriate for a pool may not be ok for the sea, and a toy suitable for a 10-year-old may not be safe for a 4-year-old. Bear in mind the age of children using it and activities the toys will be used for, and make sure you comply with the instructions on the toys to ensure water safety.
Get a quote
Summer and Christmas is also the season for DIY, but MBIE is reminding consumers to get an estimate or quote in writing from tradespeople for work done. An estimate may not be the exact price, but it should not cost more than 10 to 15 per cent over what the estimate was. In comparison, a quote is an offer to do a job for an exact price, and the cost should not go over this. Make sure to check if the quote includes GST and only deal with reputable or well established companies or individuals. References from previous jobs or clients can also be a useful indicator.
