Refunds or Exchanges

Legal requirements exist (Consumer Transactions (Restrictions on Statements Order 1976)) which prohibit the display of notices which indicate that no redress will be given to a customer in relation to the supply of goods or services. 

To which businesses do the requirements apply?
To all businesses where consumer sales by retail are conducted. It does not apply where ALL sales are other than by retail e.g. wholesale businesses which deal only with other traders.

What is prohibited?
The law prohibits the display of signs or notices which state or imply that a consumer, with a genuine complaint, would not be able to pursue his claim against the trader.

What are the customer's rights?
Goods must be as described, of satisfactory quality and fit for their normal purpose. If goods do not comply with any of these provisions, the customer may be legally entitled to a full refund of the price paid. Similar rights exist in relation to the provision of services.

A customer’s rights are more fully outlined in "A Trader’s Guide", available from this office.

What statements are prohibited?
Any statement which would cause a reasonable person to conclude that he would not be able to pursue a justified claim against a retailer, would be prohibited and therefore illegal. Examples of statements which the courts have deemed illegal are as follows:-

• "No cash refunds"
• "No sale goods exchanged or money refunded"
• "Sold as seen and inspected"
• "Please examine your goods with care because our liability ends once they leave the premises"
• "No refunds or exchanges without a receipt"   

What about the sale of seconds or rejects?
Unless specific faults are pointed out to the customer at the time of purchase, the law will apply in exactly the same way, and the customer’s legal rights remain the same. If a fault is pointed out to a customer before a purchase is made, then no claim can be made in relation to that fault. However, if a separate fault develops, the customer may be entitled to a refund.

Thus, even for the sale of seconds of rejects it is illegal to display a notice which indicates that no redress will be made in the case of a complaint.

Do the requirements only apply to notices?
No, such statements are also illegal if used in the following circumstances:-

1. published in an advertisement;
2. marked on goods;
3. included on a document given in relation to a consumer sale, e.g. order form, invoice, delivery note.   

This leaflet has been prepared for the guidance of traders. It is necessarily worded in a general way and cannot cover every circumstance. It is not an authoritative interpretation of the law.

For further advice contact:

 Trading Standards, Palmyra House, Palmyra Square North, Warrington. WA1 1JN.
 01925 442678   01925 442655   tradingstandards@warrington.gov.uk