Returns and Refunds: Federal Law
Most retailers allow customers to return goods if they change their minds or receive an unwanted item as a gift simply because it makes good business sense. But they are not required to do unless there is an obvious defect with the product. Merchants also may require a receipt in order to accept returns, which helps prevent return fraud (see discussion of this below).
Legally, it is a matter of contract law: If the merchant's policy (or sales contract) clearly states "all sales final" in a way that is not confusing to customers, then it is not required to accept returns on otherwise salable goods.
Federal law governing refunds is fairly simple and straigtforward, applying to online as well as in-store sales. Merchants do not have to provide a full refund on returned goods unless one of the following conditions is true:
Returns and Refunds: State Law
Some states have laws addressing consumer refunds, although not all of them offer guidance on how the laws apply to their residents who purchase goods from out-of-state merchants over the Internet. Below are some examples of state laws governing refunds:
In most cases, regardless of how a merchant drafts its return policy, the conditions of such a policy must be prominently displayed at the place of purchase (including Web sites) for it to be considered valid. Merchants may charge a restocking fee for returned merchandise but, as with any contractual obligation, must make this clear in their policies.Return Fraud
There are numerous ways customers can defraud a merchant through the return process, but not all return fraud is distinguishable from legitimate returns. For example, someone who has a hard time deciding on what clothes to buy and makes frequent returns is not trying to game the system. But someone who buys a formal dress, wears it once, and then returns it the next day is in fact defrauding the merchant.
U.S. retailers lose between $9.6 billion and $14.8 billion annually from return fraud, according to research by the National Retail Federation (NRF) and the Loss Prevention Research Council. Returned merchandise is either marked down or thrown away, and often incurs hidden costs associated with being restocked.
Below are some common types of return fraud:
Consumers who are caught engaging in return fraud may face shoplifting or theft charges, as long as evidence exists that an actual crime took place. For example, wardrobing may be next to impossible to prove, but surveillance video of someone removing price tags could be the smoking gun in such a case.
- See more at: http://consumer.findlaw.com/consumer-transactions/return-policies-and-refunds.html#sthash.8WIDr45o.dpuf
Return Policies and Refunds FindLaw
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