HELP, what laws are applicable for NZ business's wishing to give out gifts or prizes

Forums › Off topic › HELP, what laws are applicable for NZ business's wishing to give out gifts or prizes

snowsteve

113 posts

Master Geek

#62219 1-Jun-2010 19:03

Hi all,

First time i have posted on these forums, so here goes !!

I have been trying to figure out what (if any) laws/rules there are for a NZ business that wishes to give out free gifts and/or prizes.

The main interest is the warranty side of things- Does a prize or gift need to be a one year warranty applied to it ? i cannot seem to find any information for this situation anywhere.

Any help would be greatly appreciated.

Cheers
Steve

nate

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#337211 1-Jun-2010 23:53

snowsteve: The main interest is the warranty side of things- Does a prize or gift need to be a one year warranty applied to it ? i cannot seem to find any information for this situation anywhere.

I think it depends on the business. If I was doing it, I would have in the terms and conditions of the prizedraw what the warranty terms are. If you offer a one year warranty as standard with your products, and you are offering one as a gift, then it's not unreasonable to give the one year warranty as well.

I don't think you need to give away an extended warranty with it, however, I have no idea what the CGA says in this scenario.

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robbyp

1199 posts

Uber Geek

#337216 2-Jun-2010 00:22

snowsteve: Hi all,

First time i have posted on these forums, so here goes !!

I have been trying to figure out what (if any) laws/rules there are for a NZ business that wishes to give out free gifts and/or prizes.

The main interest is the warranty side of things- Does a prize or gift need to be a one year warranty applied to it ? i cannot seem to find any information for this situation anywhere.

Any help would be greatly appreciated.

Cheers
Steve

I remember reading on a consumer website that yes, you would be covered by the same consumer guarantee laws that apply if you sell the product. eg the CGA, and I don't believe you can contract out of it either.

robbyp

1199 posts

Uber Geek

#337218 2-Jun-2010 00:25

nate:
snowsteve: The main interest is the warranty side of things- Does a prize or gift need to be a one year warranty applied to it ? i cannot seem to find any information for this situation anywhere.

I think it depends on the business. If I was doing it, I would have in the terms and conditions of the prizedraw what the warranty terms are. If you offer a one year warranty as standard with your products, and you are offering one as a gift, then it's not unreasonable to give the one year warranty as well.

I don't think you need to give away an extended warranty with it, however, I have no idea what the CGA says in this scenario.

I don't think that is correct. Check out this page, http://www.consumer.org.nz/reports/consumer-guarantees-act/your-questions-answered

It states the following example regarding the CGA

My new mower came with a free TV, which blew up after a week. Is it covered by the Act?

Yes. Free gifts are covered, as are household goods that are hired, rented, leased or bought on hire purchase.

insane

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#337219 2-Jun-2010 00:38

I know that if you're doing a prise draw, the draw has to be witnessed by someone in the police or a JP, or something along those lines. Its worth checking as my GF landed herself into hot water after running a competition and not getting the draw witnessed by someone official.

HiJinx

253 posts

Ultimate Geek

Geekstore

#337245 2-Jun-2010 08:35

insane: I know that if you're doing a prise draw, the draw has to be witnessed by someone in the police or a JP, or something along those lines.

Correct. We've done competitions and someone from here goes down to the Police Station where they watch you draw the winner, they then give you a certificate to say who is the winner on a police letterhead.

Shaun Fisher - www.geekstore.co.nz

E: shaun[at]geekstore[dot]co[dot]nz
P: 0800894508 F: 0800897451

snowsteve

113 posts

Master Geek

#337250 2-Jun-2010 09:01

Hi all,

Many thanks for the replies & advice, looks like I will have to re-read the CGA - fun times.
I must admit the prize draws having to be sighted by police/jp took me a bit by surprise, what NZ act covers this (I assume some sort of gambling act?)

Thanks again.

robbyp

1199 posts

Uber Geek

#337424 2-Jun-2010 16:24

snowsteve: Hi all,

Many thanks for the replies & advice, looks like I will have to re-read the CGA - fun times.
I must admit the prize draws having to be sighted by police/jp took me a bit by surprise, what NZ act covers this (I assume some sort of gambling act?)

Thanks again.

Some JPs will charge you for witnessing a commercial competition I am sure.

NZ has really stupid compliance rules, that make it almost impossible to run a business in NZ in some areas. eg. Making food, where you have all these compliance rules. Instead you can just subcontract out the job offshore, import the food, and it doesn't have to be made to the same rules, which keeps the costs down. I can see a need for some of them, but common sense should prevail.

robbyp

1199 posts

Uber Geek

#337425 2-Jun-2010 16:25

HiK1000716:
insane: I know that if you're doing a prise draw, the draw has to be witnessed by someone in the police or a JP, or something along those lines.

Correct. We've done competitions and someone from here goes down to the Police Station where they watch you draw the winner, they then give you a certificate to say who is the winner on a police letterhead.

Do they charge for that, or do you have to book in a time with them. It is good that they are willing to do that for you, but is a hassle.

HiJinx

253 posts

Ultimate Geek

Geekstore

#337490 2-Jun-2010 18:59

robbyp: Do they charge for that, or do you have to book in a time with them. It is good that they are willing to do that for you, but is a hassle.

A time had to be booked but I'm not too sure if it cost anything as I wasn't the one who did it, sorry.

Shaun Fisher - www.geekstore.co.nz

E: shaun[at]geekstore[dot]co[dot]nz
P: 0800894508 F: 0800897451

snowsteve

113 posts

Master Geek

#337495 2-Jun-2010 19:25

robbyp:
snowsteve: Hi all,

Many thanks for the replies & advice, looks like I will have to re-read the CGA - fun times.
I must admit the prize draws having to be sighted by police/jp took me a bit by surprise, what NZ act covers this (I assume some sort of gambling act?)

Thanks again.

Some JPs will charge you for witnessing a commercial competition I am sure.

NZ has really stupid compliance rules, that make it almost impossible to run a business in NZ in some areas. eg. Making food, where you have all these compliance rules. Instead you can just subcontract out the job offshore, import the food, and it doesn't have to be made to the same rules, which keeps the costs down. I can see a need for some of them, but common sense should prevail.

I agree (regarding compliance rules), we have had to jump through various hoops to get the most seemingly simplest of things done through the local council, many of which seem absolutely backwards i.e. one and a half car parks per employee LOL, I would like to see two people bring three cars to work..