Summary
- Online retailers in England and Wales must provide a returns policy that reflects customers’ statutory rights, including rights relating to faulty goods and change-of-mind returns.
- Customers have 14 days to cancel an order and a further 14 days to return goods, though certain product categories are exempt.
- Returns policies should clearly explain how customers can return items, how refunds will be processed, and how faulty goods will be handled.
- This article is a plain-English guide for online business owners operating in England and Wales on their legal obligations regarding customer returns policies.
- It has been produced by LegalVision, a commercial law firm that specialises in advising clients on e-commerce and consumer law.
Tips for Businesses
Include your returns policy within your terms and conditions. Clearly distinguish between faulty goods and change-of-mind returns, and specify exempt product categories. State your refund method, return conditions, and whether you cover return shipping costs. Review your policy regularly to ensure it reflects current consumer law obligations.
If you sell goods online in England and Wales, you must have a clear returns policy that protects both your customers and your business. Customers have legal rights to return goods, whether faulty or simply unwanted, and your returns policy must reflect these rights. This article will explain precisely what your returns policy should cover.
Rights of Consumers to Return Online Purchases
Customers can return goods purchased through online orders for two reasons. Firstly, they can return the goods if they are faulty or otherwise not as you described. Secondly, they can return the goods if they have decided they do not want the item after all.
Receiving Faulty Goods
The goods you sell must be satisfactory and fit for their intended purpose. If a customer does receive an item that is faulty or otherwise not as you described it, they have the right to a full refund if they return it to you within 30 days of receiving it.
After six months, the customer still has the right to return the goods to you. However, they must prove that the goods were faulty when they received them. If you agree that the goods were faulty on receipt, you must repair or replace them. If you cannot repair or replace them, you must refund the customer, but you are entitled to make a deduction for the use of the item whilst the customer had it.
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The Customer Changed Their Mind
Customers in England and Wales automatically get a “cooling-off period”. The cooling-off period is 14 days from the day your customer places an order with you, in which they can change their minds about their order. This right to change their mind means that they have the right to return goods to you for a refund, even where there is nothing wrong with the goods.
To take advantage of this cooling-off period, the customer must tell you they have changed their mind within the 14 days, and they then have a further 14 days to return the item to you.
Exempt Goods from Change of Mind Returns
The types of products that are exempt from the customer’s right to change their mind are:
- sealed items like DVDs, video games and computer software;
- sealed hygiene items like medical products, swimming costumes and underwear;
- perishable items such as food products or flowers; and
- custom or personalised items.
What Should I Include in My Returns Policy?
It is essential to inform your customers of their rights to return items to you, whether they are faulty or simply because they have changed their minds about the goods.
As well as clearly stating your customers’ legal rights, your returns policy should also include clear information about how customers should return items to you. For goods that are not faulty, you may wish to clarify that goods returned must be in their original condition and not show signs of use and that they must be in their original packaging. You should also state whether you will pay or refund shipping costs to return goods where customers have changed their minds and how you will refund customers. If you decide you are going to offer your customers free returns, you should state that in your returns policy as well.
Suppose you sell items for which the customer cannot change their mind (for example, sealed hygiene goods like surgical masks or underwear, or perishable items like food products). In that case, you should explain to your customers that they cannot change their minds about these items.
You should also clarify how you will deal with faulty goods and what you will do if you are unable to repair or replace a faulty item. Your returns policy should also include information about how you will refund returned items from online orders. For example, usually, you would specify that refunds will be made to the original payment method.
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Key Takeaways
Customers in England and Wales have many rights relating to the goods they purchase, and this creates an obligation on you as a business owner to ensure you give effect to their rights and make sure the customer is aware of their rights. This means you need a clear and effective returns policy for your online business. Your returns policy should:
- set out your customer’s rights;
- clearly explain how your customer should return items to you;
- explain how you will deal with goods returned because they are faulty; and
- explain how you will deal with goods returned because your customer has changed their mind.
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Frequently Asked Questions
Yes, your customer has 14 days to inform you that they have changed their mind about the goods, and they do not have to give you a reason. After that, they have a further 14 days to return them to you. Thus, provided the goods are in the same condition as you sent them, you must give them a refund.
It depends. The customer must give you a chance to repair or replace the faulty item. However, if you cannot repair or replace it, then yes, you must refund the customer.
Within 30 days of the customer receiving the item.
Yes, custom or personalised items are exempt from change-of-mind returns.
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