Highland Council Trading Standards not only offer free and confidential advice to consumers, but to businesses as well.
One of the most common questions dealt with by enforcement staff from a business is “When do I have to give a refund?”
Of course there is not definitive answer as to when a business should give a consumer a refund of monies but here is a quick step guide for businesses on ‘refunds’ and ‘returns’ issues:
Knowing your customers rights!
Under the Sale of Goods Act 1979 (as amended), consumers have certain implied statutory rights if they buy goods from a trader or business. Briefly goods must be:
* of ‘satisfactory quality’ – which generally means that the item should be free from fault or defect and as well as being fit for their usual purpose, of a reasonable appearance and finish, safe
and durable.
* ‘fit for the purpose’ – as well as being fit for the purpose for which they are generally sold, goods should also be fit for any specific or particular purpose made known at the time the contract is made.
* ‘as described’ – goods should correspond with any description applied to them – this could be verbally, words or pictures on a sign, packaging or an advert.
Therefore, a consumer may be entitled to a refund, replacement, repair and/or compensation where goods are faulty or not as described. However different consumer rights apply where goods are either bought online or purchased in a retail shop.
For instance, when a consumer has bought an item of clothing in a retail store, and later discovers that it is the wrong size or they have changed their mind, there is no automatic right for the consumer to return the goods and receive a refund. Consumers do have certain cancellation rights, however, if they buy goods from mail order catalogues or over the internet, and where a contract to buy goods has been concluded in the consumers own home (e.g doorstep selling).
Restrictions and Exclusions
Businesses cannot restrict a consumers legal rights or try to take these away from them by use of an exclusion cause in a contract of by the terms of shop notice. Since the introduction of the Consumer Protection from Unfair Trading Regulations 2008 it is a criminal offence to mislead a consumer about his/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 considered illegal, as there are a number of cases where a consumer can claim a refund on non-faulty goods (e.g. misdescribed goods). Businesses are advised to avoid using these terms whenever possible and to seek advice about putting in place a clear ‘returns’ policy.
Returns Policy
It can be difficult to draft and display in a notice, a meaningful returns policy, which provides the consumer with useful information, protects business interests and adheres to consumer protection
legislation.
For this reason, it is often said that ‘the best notice is no notice’,. However, this is also not always practical for businesses who want to inform and treat all customers fairly.
Here is an example of an appropriate ‘returns policy’ for a business. This information may be shown on receipts or on a notice may state the following:
“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 legal rights, including your right to claim a refund, replacement, repair and/or compensation where the goods are faulty or
misdescribed.”
Remember, however, a business cannot impose any conditions where the consumer has a legal right to return goods.
Manufacturers guanrantees
Some goods come with their own manufacturers guarantee. The terms of such guarantees can vary but are meant to enhance a consumers statutory rights. Guarantee terms can be used as an alternative means of resolving a consumer complaint.
However, if goods are found to be faulty, midescribed or not fit for a particular purpose, then the consumer has legal rights against the retailer as discussed above.
Likewise, businesses 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.
Businesses must provide, on request, a written copy of any guarantee terms offered along with instructions and care advice of the item, where appropriate. Any such guarantee must include the following particulars:
* The name and address of the person giving the guarantee.
* The contents of the guarantee (i.e. 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.
Highland Council Trading Standards offer free and confidential advice to all businesses within the Highland geographical area. Businesses can contact Highland Council Trading Standards by telephone on 01463/228700
or by email at: trading.standards@highland.gov.uk
or alternatively visit or write to Highland Council Trading Standards, 38 Harbour Road, Inverness IV1 1UF.
For further Highland Trading Standards news please go to www.highland.gov.uk/tradingstandardsnews
<http://www.highland.gov.uk/tradingstandardsnews.htm>
Note: Highland Council Trading Standards Service is part of Transport, Environment and Community Service, Highland Council, Glenurquhart Road, Inverness
Chair: Jim Ferguson
