Word of Advice

29 September 2008

Mobile phone problems

“What do you mean you want $70 to ‘assess’ my mobile phone?” Have you ever been asked to pay a bond before a retailer will agree to even look at your faulty mobile phone? Are they allowed to do this? And what are your rights if your mobile phone is faulty?

Bonds

Some traders charge a ‘bond’ before they will assess your phone for repair. This is usually refunded if the fault is covered by the Consumer Guarantees Act or any warranty.

If you’ve used your phone in a normal way and treated it reasonably, we agree with Consumer NZ’s opinion that “it’s not acceptable or reasonable to charge for having a phone inspected when a fault occurs within the phone’s expected lifespan.”

In our opinion, you should be told about any bond (including the amount) when you buy the phone. Also, a trader can’t make you use their assessment process to see if there’s a fault with the phone. You only need to prove that it’s probable the fault is covered by the Consumer Guarantees Act. In some cases an independent opinion may help you with this.

Traders should have a process in place to help you if you can’t afford to pay the bond.

Water in your phone?

A trader cannot escape their requirements under the Consumer Guarantees Act by saying your phone is water damaged if you have used it in a normal way and treated it reasonably.

For example, we have received complaints where traders have told consumers that leaving their phone in a car overnight, or using it with “excessively sweaty hands” can cause water damage.

If a portable electronic device such as a phone can’t withstand this type of use, then it may not be ‘fit for purpose’ or ‘durable’. This may mean that it doesn’t meet one of the guarantees in the Consumer Guarantees Act saying that goods must be of ‘acceptable quality’.

Getting your phone fixed

Under the Consumer Guarantees Act, when you buy a mobile phone, like any other type of consumer goods, it must be of acceptable quality, reasonably fit for any particular agreed purpose and be as it was described. If your phone doesn’t meet any or all of these conditions you are entitled to have the fault fixed.

If the fault is minor, the trader can choose whether to repair the phone, replace it with an identical one, or give you a refund. Take the phone back to the trader you bought it from and ask them to fix the fault.

A repair should be carried out within a reasonable period of time and without causing you significant inconvenience. Any repair should restore it to a satisfactory condition. If this doesn’t happen, you are entitled to a replacement or compensation.

If the fault is serious, you are entitled to a full refund or you can ask for a replacement phone of similar type and value, or compensation to reflect the lower value of the phone resulting from the fault. When the fault is serous the choice of refund or replacement is yours, not the traders.

Remember, if you ask the trader to remedy the fault, they must sort out your problem. The trader can’t tell you to go back to the manufacturer or mislead you into claiming through a warranty.

Faulty services

When you buy a mobile phone, in order to make or receive calls you will need to be connected to a network. You may do this through a supply contract or buying a pre-pay voucher or top-up which allows you access to the network. At this point, you’ll enter into a contract with the network service provider.

If the service isn’t provided with reasonable care and skill, or is not fit for any particular agreed purpose, you may be entitled to a remedy under the Consumer Guarantees Act.

It’s important to read the terms and conditions of your agreement with the network service provider. Remember, if you choose a contract phone rather than a pre-pay phone, you will be committed to using a certain network, on a certain plan, for a period of time.

Telecommunication Dispute Resolution (TDR) scheme

If you are not happy with the way your telecommunications company dealt with your complaint you may be able to complain to the TDR. The TDR is a free, independent service to help consumers with complaints about the products and services they receive from member telecommunication companies.

For more information about TDR visit their website [external website] or free phone 0508 989898. 

Further information

For more information about your rights as a consumer, visit our website.