Did you know you do not need to have the original packaging with you when returning faulty goods? The 2020 New Zealand
Consumer Survey (NZCS) shows young people aren’t as familiar with the laws designed to protect their basic consumer
rights when purchasing as other New Zealanders.
Those aged 18-26 are less likely than the average to be aware of consumer protection laws (91 per cent compared to 94
per cent), and 64 per cent are more likely than the average (54 per cent) to report knowing “nothing or a little bit”
about their consumer rights.
Forty-three per cent of respondents to the survey aged 18-26 have never heard of the Credit Contracts and Consumer
Finance Act 2003 (CCCFA), which protects consumers when borrowing money or buying on credit, compared to an average of
29 per cent.
Mark Hollingsworth, National Manager, Consumer Protection at the Ministry of Business, Innovation & Employment (MBIE) says the findings show there’s an opportunity to improve young consumers’ knowledge so they can make
well-informed purchase decisions and don’t unknowingly lose out if something goes wrong.
“It’s important young people know there are laws protecting them when purchasing products and services, including in
credit transactions or when accessing finance,” says Mr Hollingsworth.
Young people have high rates of online purchasing, with nearly all 18-26 year olds (94 per cent) purchasing something
online in the last six months (compared to an average of 87 per cent). However, knowledge of their consumer rights when
shopping online is low - 73 per cent report knowing nothing or a little bit - and they are also less likely than average
to be concerned about the security of their payment and personal information online (55 per cent compared to 64 per
cent).
“While buying online can be convenient, resolving problems when they do arise is a little trickier,” says Mr
Hollingsworth. “We encourage young consumers to stay up to date with their rights online, including setting themselves
up for safer shopping by implementing cyber security measures as recommended by our colleagues at CERT NZ.”
Younger consumers’ reported awareness of consumer support organisations and dispute resolution services is also below
average.
Eighty-four percent of 18-26 year olds are aware of at least one organisation that provides consumer support or advice,
while 52 per cent are aware of three or more (compared to averages of 95 per cent and 71 per cent respectively).
Sixty-eight percent of 18-26 year olds are aware of at least one dispute resolution service and 14 per cent are aware of
three or more (compared to averages of 84 per cent and 39 per cent respectively).
Mark Hollingsworth notes this may explain why young people’s problems are being left unresolved.
“It’s important that young people know their options around seeking advice, and navigating the right pathway when
there’s a genuine consumer issue. This will help them to transact more confidently.”
The 2020 NZCS is the third survey in the series which enables reporting on emerging trends, including those focused on
young people. Key findings from the surveys can be found here. New Zealanders, including younger New Zealanders, can learn about their rights and how to resolve problems by visiting
Consumer Protection website.Notes to editor:For other notable findings related to young people, see the 2020 survey and infographic here.Useful resources on the CCCFA are available here.