Shoppers this weekend are advised to know their rights under the state’s refund statute.
The Office of Consumer Protection issued an alert Wednesday warning residents of potential unfair or deceptive practices by merchants as the holiday season enters full swing. While some merchants may attempt to claim they have a no-refund or no-returns policy, state laws dictate whether any refund or exchange policy is valid or unlawful.
“Understanding your rights before you buy can help prevent disputes and protect your wallet during the busy shopping season,” said Mana Moriarty, OCP executive director, in a statement.
First and foremost, state law requires that merchants with a no-refund policy — or a store credit-only return policy — be advertised with a “conspicuous sign”. Such signage is also required if a return policy is shorter than 60 days, or if certain items are exempt from the policy, or for special orders.
The OCP advisory states that any merchant who does not post such a conspicuous sign is required by law to accept returns for refunds, store credit and exchanges at the purchaser’s request.
Even if a store’s return policy is properly disclosed, it does not apply to goods that were damaged or defective before the sale, unless the merchant was aware of the damage or defect and disclosed it to the purchaser in writing.
If a store adopts a warranty policy, no warranty is allowed to charge a buy an additional fee to repair, replace or refund an item returned through the warranty.
Of course, businesses are allowed to deny refunds without any proof of purchase, or if the item is damaged, used or altered.
State law also dictates how refunds are issued. If the original purchase was made in cash, the refund must also be made in cash unless the refund exceeds $25. In such cases, refunds may be issued via check no more than 10 days after the return.
If the original purchase was made by credit card, the refund can be made to the same credit card account within five business days of the return. However, the merchant can also choose to make the refund by cash or check, with checks to be issued within 10 days.
The same requirements apply to purchases originally made by check, although a refund check can be issued up to 10 days after the date the purchaser’s check clears.
Merchants are also not able to deduct from a refund any fees associated with repackaging, restocking or transporting items unless those charges were clearly disclosed before purchase.
Item exchanges are also governed by the state law. For example, customers are entitled to partial refunds if they exchange an item for another of lesser value.
Also, if a customer returns an item in exchange for the same item in another size or color, the merchant must allow the exchange, albeit with appropriate price adjustments if the exchanged item sells at a different price.
OCP advises shoppers to be certain of a store’s return policies before purchasing, keep receipts, and to inspect items promptly for defects.
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