Do you know when you’re entitled to a refund and when you’re not? Do you know when a retailer can offer a credit note or exchange instead?
Few people do which can cause problems for both retailers and consumers.
As one of the fundamentals of commerce, our right to refund is too poorly understood and can get in the way of a positive experience.
With eCommerce spending to exceed £260 billion by 2025 and the many millions or billions we still spend in brick and mortar stores, it’s essential to understand your consumer rights.
The UK has a consumer economy. It is dependent on our spending money to generate income for the government and for retailers.
Retailers in turn help support manufacturers, distributors and firms all the way back to those who dig raw materials out of the ground or pick them in the fields.
This economic model has shown its weakness in current times, but that’s a subject for another post!
This post concentrates on your consumer rights.
Your legal right to a refund
Your legal rights as a consumer are protected by two main pieces of legislation, the Consumer Rights Act 2015 and the Consumer Contracts Regulations.
Both outline some fundamental rights every consumer who buys from UK retailers is entitled to.
Those rights include:
- 30 day grace period to return faulty items for a full refund
- Free repair or replacement for faulty items
- The right to a refund if a retailer unsuccessfully replaces or repairs an item
- The right to a full refund with no deductions in the first six months for faulty items (except vehicles)
These rights apply for physical goods, digital goods, services and content.
All those rights mainly relate to faulty items. They do not apply to you changing your mind.
Those rights also apply regardless of whether the item is in a sale or not.
Unless the item was marked as damaged or second as part of that sale, your rights remain unchanged.
Faulty items
An item is regarded as faulty if it:
- Is not of merchantable quality (not the quality you would reasonably expect for the price)
- Is not as described in the advert or marketing material
- Is not fit for the intended purpose or advertised purpose
- Does not last a reasonable amount of time
As you can see, there is some ambiguity in those rules. In general, you have to use ‘reasonable’ as your guide.
For example, is it reasonable for a washing machine to develop a fault after 3 months? What about a year?
The answer would be no, especially for more expensive washing machines.
You have to apply that same logic to whatever item you may be trying to refund.
Some retailers will try to send you to the manufacturer to get a refund or replacement. That’s not right.
Your contract is with the retailer and not with the manufacturer. The retailer is legally obliged to handle the refund, repair or exchange for you.
Your legal right to change your mind on a purchase
That’s actually a trick headline because you don’t have a legal right to change your mind on a purchase when bought in store.
You do have a legal right to change your mind when buying online though.
Bought in store
You have no right to buy something and expect a full refund if you change your mind. Your only right is in relation to faulty items.
Most retailers have a customer-friendly policy of providing refunds if the goods are in original condition.
Some retailers may offer an exchange or some kind of store credit instead. This is still perfectly legal if you simply change your mind.
If a store publishes a refund policy (usually on the wall by the checkout) they have to abide by those published rules as it forms part of the contract.
Buying online
Buying online is slightly different as you have a cooling off period of 14 days. This is contained within the Consumer Contracts Regulations.
If you buy something online, you have 14 days after delivery to inform the retailer you changed your mind.
You then have a further 14 days to return the item to the retailer at your own expense.
There are exceptions to the cooling off period.
Items you cannot return during a cooling off period except if faulty include:
- Customised and personalised items
- Perishable items like food or flowers
- Open sealed items like DVDs or computer games
- Limited life items such as newspapers and magazines
- Event, concert or cinema tickets
- Most digital downloads like games, music or videos
- Gaming, betting or lottery items
Aside from these items mentioned here, you have a full 28 days to change your mind and return the item to the retailer.
You do have responsibilities though. The item must be in original condition complete with original packaging.
Despite what some retailers may try to tell you, the outer packaging can be opened (except DVDs, games etc.).
How else are you to know whether a product is fit for purpose or not?
As long as the item itself is in original condition and the packaging has not been overly damaged except to remove the item, you’re still covered.
Right to refund FAQs
Can a retailer refuse a refund?
A retailer cannot legally refuse a refund for a faulty item. They can legally refuse a refund if you changed your mind though. If you’re trying to return a faulty item and the retailer is refusing, you have options. Raise a complaint with the retailer’s head office or contact the Consumer Ombudsman who will try to help.
Are sale items still covered under the right to refund?
Yes, sale items are still covered under the right to refund if faulty, as long as they were not in the sale as seconds. If it’s a standard sale like Black Friday or New Year sales, you have the same rights as non-sale items.
What happens if goods are damaged on delivery?
If goods are obviously damaged on delivery, you should not accept them from the courier. They may try to make you accept the item, but you are perfectly entitled to refuse. If the outer packaging is intact and the item inside is damaged, you have the same rights as with faulty items.
What happens to a refund if the retailer goes out of business?
If you need a refund from a retailer that has gone out of business, you still may have options. You can claim the refund in the normal way and the administrators will assess and perhaps pay. If you paid by credit card, you may be able to claim from your credit card company under Section 75 of the Consumer Credit Act 1974.
