Advice to business - refunds

Information about refunds.

Buyers rights

When a customer buys goods they should be:

• Of satisfactory quality - this means that the goods must work and do their job properly. They must be free from minor defects, have a reasonable appearance and finish, be safe and durable.

• Fit for their purpose - this means that if a consumer asks you for something to do a particular job or for a particular purpose - a carpet for stairs - the goods must do that job
• As described. If any description is given - on the packaging, in an advert, by a sample or anything you say - it must be right. If a coat is advertised or labelled as 80% wool, it must have 80% wool in it. If you sell carpet from a sample, the carpet supplied must match that sample. If you tell a consumer a handbag is leather it should not be plastic.

When the goods don't meet any one of these three rules:

• If the consumer has only used them a few times or hasn't had reasonable opportunity to check them, they are probably entitled to a refund for a fault or a misdescription, or alternatively they may request a replacement.

• The consumer is probably not entitled to a refund for a minor fault that can easily repaired. This repair must restore the goods to a satisfactory condition and be carried out quickly. However, the consumer can claim a replacement or repair if the repair turns out to unsatisfactory.

• If the consumer has used them more than a few times or has had a reasonable opportunity to check them, they are probably entitled to a repair or a replacement. A repair or replacement should be carried out within a reasonable period of time and without causing the consumer significant inconvenience. Any repair should restore the goods to a satisfactory condition. If this does not happen the consumer is entitled to a replacement or compensation. This could be a sum of money or the cost of having somebody else repair the goods.

• If the goods cannot be replaced or repaired the consumer is entitled to a refund. It would be reasonable for you to make a reduction from the price to allow for any use the consumer has had from the goods.

• If the goods have damaged anything else or the consumer is out of pocket in any other way, they may be able to claim compensation over and above the price of the goods.

• If the consumer is entitled to a refund, replacement, repair or compensation you must sort out the problem.

• You cannot tell the consumer to go back to the manufacturer. You may be able to claim from your own supplier, but it is not the consumers responsibility to contact the manufacturer.

Secondhand Goods

If you sell secondhand goods the same rules apply but the age and condition of the goods at the time of sale is relevant. The older goods are, the more wear and tear the consumer must expect.

Sale goods

If you sell goods in a sale the consumer has the same rights as if they paid the normal price.

Seconds or Damaged Goods

If you point out specific faults to the consumer they can't later complain about these faults.

Change of mind

A buyer is not automatically entitled to a refund if they change their mind, but it will depend on what is agreed at the time of sale.

The seller can choose to give a refund, a credit note or exchange the item. If the seller uses a notice to tell buyers that this is the policy - it is advisable to add a phrase such as 'this is in addition to your statutory rights'.

Important

• The consumer doesn't have to accept a credit note if the goods are faulty
• You can't put your responsibility on to the manufacturer. A manufacturer's guarantee is an addition to the consumer's rights. It is up to the consumer if they wish to pursue their rights under the guarantee
• If your business has access to an Arbitration Scheme you may offer this service. It is up to the consumer to accept or reject your offer.
• You are entitled to accept or refuse any offer to buy your goods.
• You are entitled to require porof of purchase but this does not have to be a receipt.
• You are not responsible for any damage or misuse of goods caused by the consumer

Remember

You are legally responsible to consumers if you sell goods that turn out to be faulty. It is better to try an negotiate a reasonable compromise with the consumer when things go wrong. We find most consumers accept that sometimes things go wrong, it is when they get a negative response to resolving the problem that they complain to Trading Standards. It is always better to try and resolve the problem rather than facing court action. We can help to try and negotiate a solution between you and the consumer.

We have a free Business Advice Pack we can send you offering an easy to use guide to Trading Standards laws and dealing with customers.

Business to business sales

These sales are not covered by this legislation. The law assumes that businesses can negotiate their own contract terms and conditions.

Contact Details

Consumer Advice and Information in Solihull, is now provided by our partners at Consumer Direct. Consumer Direct is a telephone and online consumer advice service, which is supported by local authorities (Trading Standards) and Central Government. If you do need support or assistance from Trading Standards, you will of course be referred to them by Consumer Direct.