most Retailers' No Refund' sign unfair to consumers

MBABANE- How intimidating is a sign that reads ‘No Refund’ to consumers?
Most local retailers have made it their policy to plug in such signs. As a basic premise, a consumer has no automatic legal right to return goods to a retailer and seek a refund.

Do such signs have the implication that the goods being sold by the retailers have an element of being faulty? Or is this a way to prove that the shop-owner really does not care about his/her consumers?
Signs that impose time limits for returning goods are illegal because they mislead consumers about their rights. 
Retailers don’t have to use signs, which explain their policy regarding refunds/returns, but if they are to be used, then they must clearly state what consumers are entitled to. 

The signs don’t have to be long and complicated – shorter signs can be used as long as they don’t mislead the consumer.  Disclaimers printed in small font can be considered as misleading, because consumers may not see them. Signs, which explain the refund/return policy of a retailer should be positioned as close as physically possible to the entrance(s) to the store.

This way, the consumer is unable to enter the store and make their purchase without having been deemed to be in possession of knowledge of the retailer’s refund policy.
There is no point in placing refund policy signs at the point of sale the consumer has already made their selection (if not already completed the purchase) and therefore can’t be said to have made the purchase in full knowledge of the retailer’s refund policy.
 
However, a consumer is entitled to a refund on goods purchased under the following circumstances;
*    If the goods don’t do the job while consumer was led to believe they would do.    
*    If the goods don’t match a sample shown when order.
*    If the consumer was induced into buying the goods by misrepresentation
*    If the goods don’t match the description given when ordered.
*    If the goods have a fault about which they could not have known at the time of purchase. However, consumers can’t complain about defects that were pointed out to them at the time of purchase
*    If the goods are NOT of merchantable quality, a basic level and quality and performance that would be reasonable to expect, bearing in mind the price and the way the goods were described.
A consumer may also claim compensation for any loss or damage caused by faulty goods and can be offered a repair, an exchange or a credit note rather than a refund, but it is the consumer’s choice. By informing consumers up front of the circumstances in which they can return goods can avoid confusion and conflict, and also help towards maintaining consumer harmony and customer loyalty.

Consumer policy states that a consumer is not entitled to a refund when:
*    The goods were bought for someone else who simply doesn’t want them.
*    The consumer knows, or should have known, about any fault when they bought the goods
*    There is nothing wrong with the goods, but they have changed their mind.

A consumer is NOT entitled to a FULL refund:
*    If the consumer has used the goods and obtained commercial benefit from the use, the supplier may be entitled to deduct a fair amount from the refund to make up for that benefit.
*    When the damage to goods is caused by the consumer’s negligence.  The supplier is entitled to deduct an amount from any refund.

Retailers need to be aware of this when offering services to consumers:
*    The time limit for consumers to seek a refund is dependent upon what is reasonable in the circumstances of the particular goods or services being purchased.  When consumers have problems with their purchase(s) they should bring these problems to the attention of the retailer, promptly.
*    The goods need NOT be returned in original packaging to obtain a refund.
*    A receipt or proof of purchase should always be requested when a refund, exchange or credit note is requested.
*    A refund should always be given in the manner in which, the original purchase was paid for unless otherwise agreed by both the consumer and the retailer. For example if they paid with a credit card, the refund should be reimbursed to that credit card.
Commonly displayed signs ‘No refunds’, ‘No refunds after seven days’, ‘No refund or exchange’, ‘We will exchange or repair or give credit notes but we don’t refund’
A sign, which that says ‘Please choose carefully as we don’t give a refund or credit note’ is also illegal as that sign would falsely represent the rights of the consumer. Any sign displaying a refund policy should also state that proof of purchase is required.
Refund signs are not common in the country but they should also be placed by retailers. Such signs should read;
If goods are sold by sample, for example curtains, blinds, tiles or bricks, then the following sign could be used, ‘No refund unless goods are faulty or do not match the sample you were shown’.

If mechanical, electrical or electronic goods are being sold for, example, personal computers, stereo systems, many consumers would rely on the advice of a specialist salesperson.  The sign could say: ‘No refund unless the product is faulty or does not do what we said it would.’

White goods are an example of goods sold on the basis of what they can do, for example an automatically defrosting refrigerator.  In this case, you could use a sign saying: ‘No refund unless goods are faulty or do not match description.’
Some retailers may want to tell their customers they can’t expect a refund if they change their mind.  In this case, the following wording could be used: ‘Please choose carefully.  We don’t normally give refunds just because you change your mind’.

One of Australia’s leading retailing experts, Debra Templar just hate bad consumer service and stupid business practices. So, she’s on a mission to change them. She doesn’t just want to improve how we do business for consumer’s sake but also that we, as business owners, sell more stuff, make lots of profit, and love our businesses back to life.

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