(Member's Bill 39—1, Hon Marama Davidson)
From: Ukes Baha | 18 March 2025
The Consumer Guarantees (Right to Repair) Amendment Bill (Bill 39-1) requires amendments to ensure it is practical, fair, and does not impose unnecessary burdens on businesses while protecting consumer rights.
Section 12(1)(a) imposes an unreasonable obligation on manufacturers to guarantee the availability of repair facilities and spare parts. This is impractical, especially for small manufacturers or rapidly evolving products.
Amendment: Remove Section 12(1)(a). Manufacturers should not be required to guarantee spare parts or repair services but should be expected to design products for reasonable repairability where feasible.
Section 12(5) allows manufacturers to charge for spare parts but lacks safeguards against exploitative pricing.
Amendment: Amend Section 12(5) to prevent manufacturers from pricing spare parts higher than what they charge their authorised repairers or the general market price for similar parts.
The Bill does not prohibit manufacturers from using software locks to block independent repairs, which can be used to prevent legal repairs.
Amendment: Amend Section 12 to prohibit manufacturers from using software locks or digital restrictions unless necessary for security, fraud prevention, or regulatory compliance.
The Bill does not explicitly state that third-party repairs void warranties. Manufacturers should not be responsible for damage caused by unauthorised repairs.
Amendment: Amend Section 14 to explicitly state that warranties are void if a third-party or unauthorised repairer is used. This aligns with standard industry practice.
Section 19A(2) does not define "reasonable time" for repairs. While flexibility is necessary, consumers should still have clarity.
Amendment: Retain “reasonable time” in Section 19A(2) but require manufacturers to provide an estimated repair timeframe upon request and notify consumers of delays.
Section 12(1)(b) requires manufacturers to provide repair information but does not specify its scope.
Amendment: Amend Section 12(1)(b) to require manufacturers to provide only basic repair instructions, such as a leaflet or online manual, covering routine maintenance and simple fixes. They should not be required to provide specialised tools, proprietary software, or internal schematics.
The Bill promotes repair rights but does not actively encourage consumers to choose repairs over replacement.
Amendment: Introduce government-backed repair incentives, such as GST reductions on repair services or subsidies for essential product repairs, similar to Sweden’s tax reductions on repairs.
The Bill does not clearly link repairability to waste reduction without burdening businesses.
Amendment: Add a provision stating that encouraging repairable designs helps reduce electronic waste and supports sustainability goals without imposing rigid spare parts requirements on manufacturers.
Some manufacturers may view the Bill as an operational burden. The amendments proposed mitigate these concerns.
Amendment: Include a statement in the explanatory note that this approach allows manufacturers to adapt to repairability expectations without unworkable obligations, ensuring businesses remain competitive while giving consumers repair options.
The Bill must be amended to ensure it is balanced, practical, and effective. The proposed changes remove excessive obligations, clarify warranty terms, prevent unfair pricing, ensure repair timelines are reasonable, and reinforce environmental benefits without overreach. These amendments are necessary for the Bill to function as intended.