Warranties in New Zealand Law (2026 Updated)

If you sell products, provide services, run an online store, or sign contracts with suppliers, “warranties” will come up sooner than you think.

They’re one of those legal concepts that can feel a bit abstract until something goes wrong - a customer wants a refund, a supplier delivers faulty stock, or a contract says you’ve “warranted” something you didn’t actually check.

This guide is updated for current expectations and compliance focus, so you can understand how warranties work in New Zealand, what the law automatically implies, and how to manage warranty risk in your business from day one.

What Is A Warranty (And Why Does It Matter)?

In plain terms, a warranty is a promise about something.

In a contract, a warranty is usually a statement or assurance that certain facts are true (for example, “the goods are new”, “the software doesn’t infringe anyone’s IP”, or “the seller has title to the assets”). If that promise turns out to be untrue, it can trigger a claim - usually compensation (damages), and sometimes other rights depending on the contract wording.

Warranties matter because they do two practical jobs:

• They allocate risk (who wears the cost if something is wrong?).
• They set expectations (what level of quality, performance, or compliance is being promised?).

One common trap is assuming “warranty” only means a manufacturer warranty or store warranty policy. In reality, warranties pop up everywhere - including leases, share sales, service agreements, and website terms.

Warranty Vs Guarantee: What’s The Difference?

In everyday conversation, “warranty” and “guarantee” get used interchangeably.

Legally, in New Zealand consumer law you’ll often hear about consumer guarantees (like acceptable quality and fitness for purpose) under the Consumer Guarantees Act 1993. These are automatic rights that apply in many consumer transactions, whether or not your business “offers a warranty”.

In contracts between businesses (B2B), “warranties” usually refer to contract promises you negotiate and write down.

Warranties Vs Conditions (The Quick Practical Take)

You might also hear “conditions” and “warranties” used as contract terms.

While the label isn’t always decisive, traditionally:

• Conditions are fundamental terms - breach can allow termination in some situations.
• Warranties are important promises, but breach usually leads to a damages claim rather than termination.

In practice, what matters most is:

• what your contract actually says happens if the promise is wrong, and
• what the law implies into the relationship.

Do Warranties Automatically Apply In New Zealand?

Yes - often, warranties (or warranty-like obligations) apply automatically, even if you never used the word “warranty”. The key is knowing which legal framework applies.

Consumer Sales: The Consumer Guarantees Act 1993 (CGA)

If you sell goods or services to consumers in New Zealand, the Consumer Guarantees Act 1993 can apply. It creates automatic guarantees, including (in broad terms):

• goods must be of acceptable quality
• goods must match their description
• goods and services must be fit for the purpose the consumer makes known
• services must be carried out with reasonable care and skill
• services must be completed within a reasonable time (if no time is agreed)

These guarantees are not “optional”, and you generally can’t contract out of them when dealing with consumers.

That’s why a refund policy or a “no refunds” sign can get you into trouble if it misleads customers about their rights. It’s also why your website and customer-facing terms need to be carefully worded - so you don’t accidentally promise something you can’t deliver (or unlawfully restrict consumer rights).

Misleading Conduct: The Fair Trading Act 1986 (FTA)

Even where the CGA doesn’t apply, the Fair Trading Act 1986 still matters because it regulates misleading or deceptive conduct and false representations in trade.

Practically, this means you need to be careful about:

• advertising “lifetime warranties” with fine print that effectively guts the offer
• saying products are “genuine”, “authentic”, “new”, or “NZ made” if they’re not
• describing capabilities (especially in tech and online services) that aren’t actually there

If your marketing language creates an expectation, a customer may argue you made a representation you must stand behind.

B2B Deals: Contract Warranties And Contracting Out

Between businesses, warranties typically come from the contract itself. In many B2B supply relationships, parties also try to contract out of the CGA (which can be permitted in certain business-to-business contexts if done correctly and in writing).

This is where strong Terms of Trade can make a real difference. They’re not just admin paperwork - they shape warranty obligations, exclusions, claim timeframes, and who pays for returns or rework.

Because contracting out rules can be technical and depend on the exact relationship, it’s worth getting tailored advice before you assume a short clause at the bottom of an invoice will protect you.

What Types Of Warranties Show Up In Business Contracts?

Warranties aren’t one-size-fits-all. The “right” warranties depend on what you’re selling, who you’re selling to, and what could realistically go wrong.

Here are common warranty categories you’ll see in New Zealand business contracts.

Title Warranties (Ownership Warranties)

Title warranties are promises that the seller actually owns what they’re selling and has the right to sell it.

This comes up a lot in:

• asset sales (selling equipment, vehicles, stock, IP, websites, customer lists)
• business sales
• sale of goods arrangements
• assignments of IP or contracts

Typical title warranties include promises that:

• the seller has good title to the goods/assets
• the assets are free of security interests or undisclosed finance (unless stated)
• no third party has rights that would stop the buyer using the assets

If you’re buying a business, these warranties can be crucial because you don’t want to pay for assets you can’t legally use. That’s why a proper Business Sale Agreement usually contains detailed warranty schedules.

Quality And Performance Warranties

These are promises about how the product or service will perform.

Examples include:

• products meet specifications or agreed standards
• services will be performed with reasonable care and skill
• software will operate “materially in accordance with documentation”
• work will pass testing/acceptance criteria

The risk here is overpromising. If your sales pitch or proposal implies a performance standard, you may end up warranting results you can’t control.

Compliance Warranties

Compliance warranties are promises that you’re following relevant laws, regulations, standards, and industry codes.

You’ll often see these in:

• construction and labour hire agreements
• health and safety-heavy industries
• financial services and regulated sectors
• ecommerce businesses collecting customer data

If you’re collecting personal information (names, emails, delivery addresses, IP addresses, payment-related data), privacy compliance matters. For many businesses, having a fit-for-purpose Privacy Policy is a practical baseline, but privacy obligations can extend beyond what’s written on your website.

Intellectual Property (IP) Non-Infringement Warranties

These warranties are promises that what you’re selling doesn’t infringe someone else’s IP (copyright, trade marks, designs, etc.).

They’re common in:

• branding and design services
• software development
• marketing agencies and content creators
• product supply and manufacturing deals

If you’re importing or white-labelling products, this can become a real risk area - because you might rely on overseas suppliers, but you’re the one selling into the NZ market.

Authority And Capacity Warranties

These are promises that the person signing the contract has the authority to bind the business, and that the business has legal capacity to enter the deal.

This is particularly relevant if you’re signing for a company. If your company governance isn’t clear (for example, who is allowed to sign and approve major transactions), it can create disputes later. Many companies manage this through their Company Constitution and internal resolutions.

Can You Limit Or Exclude Warranties In New Zealand?

Sometimes you can - but it depends heavily on whether you’re dealing with consumers or businesses, what you’re trying to limit, and how you communicate it.

This is a classic area where “template terms” can cause more problems than they solve, because an exclusion clause that’s not enforceable may give you a false sense of security.

Consumer Transactions: Be Careful

If the Consumer Guarantees Act applies, you generally can’t exclude those guarantees.

You can still offer an “express warranty” (a voluntary warranty promise), but it should sit on top of CGA rights - not replace them or imply the customer has fewer rights than the law provides.

If you operate online, your terms and refund processes should match your obligations. In many cases, properly drafted Online Shop Terms and Conditions help set expectations around delivery, change of mind, defects, and claim handling in a way that works with NZ consumer law.

B2B Transactions: Limitation Of Liability Is Often The Key Tool

In B2B contracts, you’ll often see warranties paired with limitation of liability clauses - for example, capping liability to the contract value, excluding indirect or consequential loss, or setting short timeframes for warranty claims.

This is a balancing act. If you over-limit your warranties, you might lose the deal. If you under-limit them, you may take on risk that’s bigger than your margin.

It’s also important to make sure your warranty limits match your insurance coverage (and that you actually have the insurance you think you have).

“Contracting Out” Of The CGA In B2B Deals

The CGA may allow contracting out in certain business-to-business sales where the goods or services are acquired for business purposes, but there are specific requirements around how that contracting out is done.

If contracting out is important to your business model (for example, you’re a supplier selling only to trade customers), it’s worth getting your terms reviewed so your contracting-out clause is properly drafted and actually effective.

How Do You Manage Warranty Risk In Your Business (Without Losing Customers)?

Most warranty disputes aren’t caused by “bad” businesses. They’re caused by unclear expectations.

The goal isn’t to avoid warranties altogether - it’s to manage them so you can confidently deliver what you promise, and avoid promising what you can’t control.

1. Match Your Marketing Claims To What You Can Prove

Warranty problems often start before the contract is signed - in ads, product listings, proposals, and sales calls.

Practical steps:

• avoid absolute claims unless you can back them up (e.g. “guaranteed results”)
• keep a paper trail of what was actually promised (quotes, scope of work, emails)
• use clear specifications (models, measurements, versions, inclusions/exclusions)

If you’re using social media or influencer marketing, make sure your representations are consistent across channels. A “quick caption” can still be a representation in trade.

2. Put Warranty Terms In The Right Document (And In The Right Place)

Your warranty terms shouldn’t be scattered across:

• invoices
• email signatures
• product packaging
• website FAQs

If different documents say different things, you can end up in a dispute about which terms apply.

Depending on your business, warranties are often best contained in:

• terms of trade (for supply relationships)
• service agreements (for services and projects)
• online store terms (for ecommerce sales)
• a business sale agreement (for buying/selling a business)

3. Be Clear About Process: How Customers Make A Warranty Claim

Even if your warranty is solid, the process can create friction.

Consider spelling out:

• what evidence is needed (photos, proof of purchase, serial number)
• how claims are lodged (email, form, portal)
• timeframes for assessment and remedy
• whether repair, replacement, or refund applies (and when)
• who pays for shipping/return costs (where lawful)

This doesn’t just reduce disputes - it makes your business look more professional and trustworthy.

4. Check Your Supply Chain Warranties (So You’re Not Left Holding The Bag)

If you sell products sourced from suppliers, your customer-facing obligations may be stronger than your supplier’s obligations to you.

That mismatch is a common way small businesses lose money: you honour the customer’s rights, but your supplier refuses to reimburse you.

Try to line up:

• your supplier warranties (quality, defects, timeframes)
• your return rights against your supplier
• your ability to recover costs (including labour and freight)

When you’re negotiating, it’s not just about price - it’s about what happens when something goes wrong.

5. Train Your Team (Especially Customer-Facing Staff)

A warranty policy can be perfect on paper, but a single incorrect statement to a customer can create a dispute (and sometimes a legal risk if it’s misleading).

Make sure anyone who deals with customers understands:

• the basics of CGA guarantees
• what they can and can’t say about refunds or repairs
• when to escalate an issue to a manager

If you employ staff, your internal expectations are often best documented in a staff handbook and reflected in each Employment Contract, so your team is consistent in how they represent the business.

Key Takeaways

• In New Zealand, warranties can come from your contract, but consumer “guarantees” can also apply automatically under the Consumer Guarantees Act 1993.
• The Fair Trading Act 1986 matters because advertising and sales claims can create enforceable expectations - and misleading conduct can expose you to liability.
• Common contract warranties include title/ownership warranties, quality and performance warranties, compliance warranties, authority warranties, and IP non-infringement warranties.
• Limiting or excluding warranties depends on the situation - you generally can’t contract out of consumer guarantees, but you may be able to manage risk in B2B contracts with properly drafted terms and liability limits.
• Warranty disputes are often preventable by aligning marketing claims with what you can deliver, putting terms in the right document, and having a clear claims process.
• If you rely on suppliers, make sure your supplier warranties and return rights are strong enough to cover what you’ll owe your own customers.

If you’d like help reviewing or drafting warranty clauses (or making sure your terms are enforceable and compliant), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.