As the festive season is now upon us, customers will be shopping in-store or online for gifts for their friends and family. There is no doubt that both customers and businesses will want the shopping experience to be a smooth one.
Often problems arise when customers receive faulty gifts or gifts that did not meet their expectations so want to request to exchange or obtain a refund for the goods.
It is important that businesses are aware of the legal rights of customers to prevent any potential legal action being taken against them.
What are consumer rights?
The Consumer Rights Act 2015 (CRA) sets out consumer rights when buying products, services and digital content from traders.
A “consumer” is a person who purchases goods and services for personal use. A “trader” includes all businesses.
Under the CRA, when supplying goods, whether physical or digital, they must be fit for purpose, as described and of satisfactory quality.
How can businesses comply with consumer rights?
To comply, it is important that businesses who sell directly to consumers have provisions that incorporate the CRA, or if necessary the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR), in their Terms and Conditions.
When do customers have a right to a refund?
Under the CRA, customers may be entitled to a refund, replacement, repair and/or compensation where goods are faulty or not as described.
Customers are also entitled to a refund and/or compensation where a business has sold goods to them, but they had no legal right to do so.
If a customer has ordered goods online, by post or on the telephone, they have the right to cancel their order for a limited time even if the goods are not faulty in any event under the CCR.
When can a business refuse a refund?
Businesses do not have to refund a customer if they:
- Knew an item was faulty when they bought it;
- Damaged an item by trying to repair it themselves or getting someone else to do it (though they may still have the right to a repair, replacement or partial refund); or
- No longer want an item (for example because it’s the wrong size or colour) unless they bought it without seeing it (for example, ordered clothing online).
How do you handle a customer requesting a refund?
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