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The Refund Checklist: When Do You Have to Offer a Refund?

As a retailer, it’s not always clear when you are and aren’t obligated to offer a refund. Many businesses, both online and offline, tend to just follow the pack in terms of refund policies. If one denies refunds during sale periods, others copy, assuming that it must be above board if so many are doing it.

Pod Legal has crafted a handy refund checklist, to help business owners understand when refunds are a legal requirement, and when they’re more of a goodwill courtesy.

Your customer is entitled to a refund, replacement or repair if:

• The item is faulty or damaged
• They were sent the wrong item
• They were sent the wrong size
• The item doesn’t work as a reasonable person would expect it to
• The item is significantly different from product images and description

You have no legal obligation to provide a refund if:

• They simply changed their mind
• They found the product cheaper elsewhere
• They purchased the wrong size
• The product has a fault that you knew about, before you bought it.
• They are unable to present a valid proof of purchase

Lock down your refund policy

A watertight refund and returns policy is critical to maintaining your legal responsibilities, and protecting your reputation from a consumer perspective.

Reach out to Jamie at Pod Legal to discuss professional preparation of your refund and returns policies, to ensure you’re compliant from every angle.