© 2011 itsa Ltd on behalf of the Trading Standards Institute.
A consumer has rights where goods are faulty or not as described, and there are laws covering retailers' returns policies, including rules that apply to returns policy notices in retail shops.
This guidance does not apply to businesses that sell only to other businesses.
In the guide
Do I have to accept returns?
What can I say in my returns policy?
Can I limit my liability to a customer?
Can I disclaim the notice to make it correct?
Consumer guarantees
Can I enhance customer rights?
Do I have to accept returns?
Under the Sale of Goods Act 1979, a consumer may be entitled to a refund, replacement, repair and/or compensation where goods are faulty or not as described. They are also entitled to a refund and/or compensation where the seller had no legal right to sell the goods.
In other cases - for example, where the consumer has bought an item of clothing in the wrong size, or they have changed their mind or an item is an unwanted gift - there is normally no automatic right to return goods. There are a few exceptions to this rule, including goods sold by mail order or over the internet and some goods sold to a consumer during a visit to their home. See our leaflets 'Selling at a distance (via the internet, telephone, post etc)' and 'A trader's guide to contracts concluded in consumers' homes or workplaces' for more information.
What can I say in my returns policy?
It can be difficult to draft a returns policy that provides the consumer with useful information, protects your interests and also meets the requirements of the law. For this reason, it is often said that 'the best notice is no notice', and you should not need to state a returns policy at all unless your policy is more than the law requires.
Where you do offer the consumer more than the law requires, you can impose conditions, for example:
- a requirement to produce the original till receipt
- a requirement to return the goods unused and in unopened packaging
- a deadline for returns
- an offer to exchange or offer a credit note, but not to refund
You cannot impose these conditions where the customer has a legal right to return goods. So the following would be an acceptable returns policy:
'Returns policy - If you change your mind about your purchase, please return the unused goods to us with the original till receipt within 14 days and we will offer you an exchange or a credit note. This does not affect your usual consumer rights, including your right to claim a refund, replacement, repair and/or compensation where the goods are faulty or misdescribed.'
Can I limit my liability to a customer?
Consumers' legal rights cannot be taken away or restricted, and any attempt by a trader to do so by reference to an exclusion clause or similar notice will be void and therefore unenforceable.
Under the Consumer Protection from Unfair Trading Regulations 2008 it is also a criminal offence to mislead a consumer about his or her legal rights.
The following are examples of statements that are likely to mislead consumers about their rights:
- no refunds given
- goods can only be exchanged
- only credit notes will be given against faulty goods
- sold as seen
Even the statement 'No refunds except where goods are faulty' would be illegal, as there are a number of cases where a consumer can claim a refund on non-faulty goods (such as misdescribed goods).
Can I disclaim the notice to make it correct?
It is a common misconception that statements such as those described above can be used if they are accompanied by a statement such as 'Your statutory rights remain unaffected'. However, where two contradictory statements are used together they are still likely to mislead consumers about their rights and the notice is likely to be illegal.
Consumer guarantees
The Sale and Supply of Goods to Consumers Regulations 2002 set out rules which apply when you give a guarantee on goods without extra charge. Any such guarantee must include the following particulars:
- the name and address of the person giving the guarantee
- the contents of the guarantee (that is, what it covers, which countries it applies in, and what you will do when a claim is made)
- the duration of the guarantee
- how to make a claim
- a statement that the consumer has statutory rights that are not affected by the guarantee
You cannot use the duration of a guarantee to limit consumers' rights. Consumers are entitled to expect goods to remain of satisfactory quality throughout their reasonable life expectancy, so long as they are maintained correctly and not misused.
If you offer a guarantee, consumers can require you to provide a copy in writing.
Can I enhance customer rights?
Yes, you can give the consumer more rights than are required by law. You can do this on a notice, on business documents (for example, a till receipt) or on the goods themselves.
Where you state anything about your returns policy or guarantee, you must also state that the consumer has statutory rights that are not affected by the policy or guarantee.
Please note
This leaflet is not an authoritative interpretation of the law and is intended only for guidance. Any legislation referred to, while still current, may have been amended from the form in which it was originally enacted. Please contact us for further information.
Relevant legislation
Sale of Goods Act 1979
Unfair Terms in Consumer Contracts Regulations 1999
Sale and Supply of Goods to Consumers Regulations 2002
Consumer Protection from Unfair Trading Regulations 2008
Last reviewed/updated: October 2012
© 2013 itsa Ltd on behalf of the Trading Standards Institute.
