Seller Delivery Obligations Under the Consumer

Delivery is one of those parts of running a business that feels “operational” rather than “legal” - until something goes wrong.

A courier loses a parcel, a customer says their order never arrived, an item turns up late for an event, or the wrong product is delivered. Suddenly, you’re not just dealing with logistics. You’re dealing with consumer law risk.

If you sell goods or services to consumers in New Zealand, the Consumer Guarantees Act 1993 (CGA) can apply. And while the CGA doesn’t set out a standalone “delivery code”, delivery problems often trigger CGA remedies (and complaints) because they affect whether the customer was actually supplied what they paid for, within the timeframe they were entitled to expect, and in the condition required by law.

This guide breaks down seller delivery obligations under the Consumer Guarantees Act in practical terms - including the key terms to understand, common risk scenarios, and what you can do in your business documents and processes to stay protected from day one.

What Does The Consumer Guarantees Act Require Sellers To Do About Delivery?

The CGA gives consumers automatic guarantees when they buy from you “in trade” (i.e. as part of your business). These guarantees can’t be contracted out of for consumer sales (with very limited exceptions, which we’ll cover later).

Delivery sits slightly “sideways” to the CGA because the CGA’s guarantees focus on the goods and services supplied, rather than “delivery” as a separate legal topic. But in real life, delivery is often part of the supply - especially for online orders, where the customer’s whole experience depends on receiving the goods at the right time and place.

In practical terms, seller delivery risk under the CGA often shows up through questions like:

Did the customer actually receive the goods? If not, they may argue they haven’t been supplied at all.
Were the goods delivered in acceptable condition? Damage in transit can become a CGA “acceptable quality” issue.
Were the goods delivered within the timeframe promised (or reasonably expected)? Late delivery can create remedy claims, especially if timing mattered and you knew it.
Was delivery included as part of the service you supplied? If you charge for delivery, arrange delivery, or make delivery representations, you’re more exposed to disputes.

It’s also important to remember that the CGA usually operates alongside the Fair Trading Act 1986. So even where a complaint isn’t a strict CGA “breach”, you can still face risk if your delivery timeframes or shipping claims are misleading.

From a small business perspective, the key takeaway is: delivery issues can quickly become consumer law issues - and your terms, processes, and customer communications matter.

Does The CGA Cover Shipping And Courier Services?

The CGA doesn’t “regulate couriers” in the way a transport law might, but if you are the seller and you’re the customer’s point of contact, delivery problems often land on your desk.

Even if you use a third-party courier, the customer usually contracted with you for the purchase (and sometimes for delivery as part of that purchase), not the courier. That’s why, commercially, you want clear terms with both:

your customer (what you promise about delivery); and
your courier/logistics provider (service standards, liability, insurance, claims process).

Key Delivery Terms Small Businesses Should Define (Before A Dispute Happens)

One of the biggest causes of delivery disputes is that businesses and customers are working off different assumptions.

Your goal is to make your delivery offer clear enough that a reasonable customer understands what to expect - and clear enough that if something goes wrong, you can point to a consistent process.

Here are the delivery terms we typically recommend thinking through.

1) “Dispatch” Versus “Delivery”

Many businesses accidentally advertise “delivery” when they really mean “dispatch”. For example, “Delivered in 2–3 days” can be interpreted as arriving within that time - not leaving your warehouse.

Consider specifying:

Dispatch timeframe (e.g. “Orders dispatch within 1–2 business days”).
Delivery estimate (e.g. “Delivery typically takes 2–5 business days after dispatch”).
What counts as a delay outside your control (e.g. weather events, courier network disruptions).

It also helps to define what a “business day” means in your terms, especially around weekends and public holidays. If your customers are asking “does Saturday count?”, the answer should already be written down (and consistent with how you operate). For clarity, you can align your language with Business Day definitions commonly used in contracts.

2) Risk Of Loss And Damage In Transit

A classic dispute is: “It arrived broken - who’s responsible?”

Even if the courier caused the damage, the customer will usually expect you to make it right. Under the CGA, goods must be of acceptable quality, and arriving damaged can breach that guarantee.

Practically, your documents and processes should cover:

what customers should do if goods arrive damaged (photos, timeframe to notify you);
your remedy process (repair, replacement, refund, or re-send); and
how you’ll handle courier claims internally (so the customer isn’t stuck in the middle).

This is also where having the right consumer-facing policies matters. If you sell online, it’s common to publish Shipping Policy details that set expectations without overpromising.

3) Authority To Leave And Safe Place Delivery

If a parcel is left unattended and goes missing, you’ll often see arguments about whether it was “delivered”.

Think through:

Do you allow “authority to leave”?
Does the customer have to select it, or is it the default?
What happens if they provide an incorrect address?
What proof of delivery will you accept (signature, GPS photo, courier scan)?

There’s no one-size-fits-all answer - but a clear process reduces “he said / she said” disputes.

4) Delivery Timeframes And “Time-Critical” Orders

Late delivery is especially risky when timing is the whole point (e.g. birthday gifts, event supplies, perishable items, custom printing for a launch).

From a CGA perspective, time can matter because consumers are entitled to receive what they were promised, and because services must be carried out with reasonable care and skill (and within a reasonable time if not otherwise agreed). Where you have agreed to deliver (or delivery is part of the services you supply), delays can also become part of the overall assessment of whether you’ve met your obligations.

If you know a customer’s purpose and confirm you can meet it, you can increase your exposure if you don’t deliver as agreed.

Practical ways to manage this include:

offering express shipping only where you can genuinely support it;
using careful wording like “estimated delivery” (but only if that’s not misleading);
being upfront about cut-off times; and
building a “time-critical order” confirmation step into your checkout or sales process.

Common Delivery Disputes That Trigger CGA Remedies (And How They Usually Play Out)

When you understand the common patterns, you can design your customer journey to reduce both complaints and chargebacks.

Goods Never Arrived (Lost Parcels)

If a customer says they never received the goods, the core issue is often: have the goods been supplied?

In practice, you’ll want to look at:

your tracking information and proof of delivery;
whether it was delivered to the correct address;
whether the customer authorised delivery without signature; and
what your promised remedy process is (re-send vs refund).

Even if you believe the courier is at fault, leaving the customer to chase the courier is rarely a good outcome - and can create consumer law and reputational risk.

Goods Arrived Damaged

Damaged goods can be treated as a failure to meet the guarantee of acceptable quality (depending on severity and context).

For your business, the best approach is usually to:

respond quickly and document everything (photos, batch numbers, courier label);
offer a practical remedy (replacement/repair/refund depending on the failure); and
then deal with the courier claim behind the scenes.

It can also help to ensure your website terms align with what the CGA requires, so you’re not accidentally promising remedies that don’t match your legal position. Having tailored E-Commerce Terms And Conditions is often a key part of that foundation.

Late Delivery And “It Was For A Specific Purpose” Complaints

Late delivery complaints often become complicated when the customer says they told you why they needed it - and they relied on your assurances.

From a risk perspective, be cautious about:

guaranteeing arrival dates you can’t control;
using countdown language like “arrives by Friday” unless it’s truly reliable; and
silence when delays arise (customers often complain less when they’re kept informed early).

Wrong Item Delivered

Sending the wrong product is usually more straightforward: the customer didn’t get what they ordered. That can be treated as a failure to comply with the guarantees relating to correspondence with description/sample and acceptable quality.

Your best protection here is process-driven:

pick/pack checks;
clear SKU labelling;
photos of packed orders for high-value goods (where appropriate); and
a documented returns/replacement workflow.

It’s also helpful if your returns wording is consistent across your website, invoices, and customer support scripts. Many businesses build this out with a clear approach to Returns, Refunds And Exchanges that reflects both the CGA and operational realities.

What You Can (And Can’t) Put In Your Terms: Contracting Out, Liability, And “No Refunds” Signs

This is where many small businesses get caught out: they try to manage delivery risk with strong-sounding terms, but those terms either don’t work under NZ consumer law, or they create more risk under the Fair Trading Act.

You Generally Can’t Contract Out Of The CGA For Consumer Sales

If you sell to consumers (for personal, domestic, or household use), the CGA protections generally apply no matter what your terms say.

So statements like:

“No refunds under any circumstances”
“All sales are final”
“We are not responsible once shipped”

…can be risky, because they can mislead customers about their rights and escalate disputes.

What About Business-To-Business Sales?

If you sell goods or services to another business (not a consumer), there are situations where you can contract out of the CGA - but only if you do it properly (including contracting out in writing) and it’s fair and reasonable in the circumstances.

This is a common tool for wholesalers, manufacturers, and service providers, but it needs careful drafting. If you try to “contract out” with a generic line copied into an invoice, it may not be enforceable.

If you have both consumer and B2B customers (which is very common), it’s worth structuring your terms so you’re not treating them all the same.

Limitation Of Liability Clauses Still Need To Be Careful

Even where you can limit liability (usually more relevant in B2B deals), you need to ensure the clause is clear, tailored, and consistent with the rest of the contract.

For consumer transactions, your focus should be less on “excluding all liability” and more on:

setting accurate expectations (dispatch vs delivery);
having a clear remedy process; and
avoiding misleading shipping claims.

Cancellation Fees And Restocking Fees (When Delivery Is Involved)

Delivery disputes often involve cancellations too - for example, a customer cancels because the goods haven’t arrived, or wants to cancel after dispatch.

Cancellation fees can be legitimate in some scenarios, but they need to be handled carefully, especially for consumers. If you charge “restocking fees” or “admin fees”, make sure your wording is clear and reflects real costs. You can also sanity-check your approach against common issues around Cancellation Fees (particularly if your business provides services as well as goods).

Practical Steps To Reduce Delivery Risk (Without Killing The Customer Experience)

The legal side is only half the solution. The other half is having a delivery system that’s consistent and easy for your team to run.

Here’s a practical checklist many small businesses use.

1) Align Your Website, Ads, And Customer Support Scripts

Delivery risk spikes when different parts of your business say different things. Make sure your:

product pages,
checkout language,
order confirmation emails,
shipping policy, and
support team responses

…use consistent delivery wording, especially around timeframes and delays.

2) Keep Proof Of Dispatch And Proof Of Delivery

For disputed deliveries, documentation wins time back.

Depending on your business, this can include:

tracking numbers saved against order records;
dispatch scan confirmations;
signature-on-delivery for higher value goods;
photos of packed goods; and
customer address confirmation logs.

3) Build A Clear Remedy Path (So Staff Don’t Improvise)

When a customer complains, your team should know what happens next without making it up on the spot.

A simple internal workflow might be:

Confirm order details and delivery method.
Request evidence (photos, confirmation of address, timeframe since dispatch).
Assess whether it’s likely lost, damaged, or delayed.
Offer remedy options consistent with the CGA and your terms.
Escalate courier claim internally.

4) Treat Chargeback Risk As Part Of Delivery Risk

For e-commerce businesses, delivery complaints often turn into chargebacks if the customer feels ignored or stuck.

Fast response times, clear tracking, and a fair remedy process can reduce the likelihood that customers go straight to their bank.

5) Make Sure Your “Warranty” Language Matches NZ Law

Delivery problems often blend into warranty problems - for example, “it arrived broken” or “it stopped working after two days”.

Be careful about using “warranty” wording that suggests the customer only has rights under your store policy. Under NZ law, consumers have CGA rights regardless of any manufacturer warranty.

If you want a clear, compliant approach to this, having documentation that reflects Warranties obligations can save a lot of back-and-forth later.

Key Takeaways

Delivery problems often become consumer law problems, because they affect whether goods have been supplied, whether they’re of acceptable quality, and whether your promises about timing and service were met.
Practically, seller delivery obligations under the Consumer Guarantees Act often come down to what you promised about dispatch and delivery timeframes, and how you handle issues like loss, damage, and delays.
Define key delivery terms upfront (dispatch vs delivery, authority to leave, damaged goods process, and how you handle lost parcels) to reduce disputes and chargebacks.
You generally can’t contract out of the Consumer Guarantees Act for consumer sales, and “no refunds” style wording can create legal and reputational risk.
Strong, tailored website terms and policies (especially for e-commerce) help set expectations and support your team to handle delivery complaints consistently.
If you sell to both consumers and other businesses, you may need different terms for different customer types to avoid accidental non-compliance.

If you’d like help getting your online terms, delivery wording, refunds process, or consumer law compliance set up properly, contact Sprintlaw on 0800 002 184 or email team@sprintlaw.co.nz for a free, no-obligations chat.

Seller Delivery Obligations Under The Consumer Guarantees Act In NZ