Non-returnable deposits - no refunds

This case is about situations wherein traders impose a condition on consumers whereby they must pay a "non-returnable deposit" when ordering and/or reserving products or services. Mr and Mrs Micallef St John paid International Sales Direct (ISD) a Lm15 deposit on ordering a Gelato Facile (ice cream maker) worth Lm95. Subsequently since they were given an ice cream maker as a gift, they asked ISD to spend the Lm15 deposit on something else. In a letter to ISD they wrote, "We are not asking you to refund us the deposit, but to exchange it with something useful worth around Lm15 or more."

Before receiving a reply from ISD Mr Micallef St John, who was writing on behalf of his wife, sent ISD three letters on December 2, 2004, and on August 5 and September 29, 2005. All these letters were copied in to me.

On having received copies of these letters, I sent chasers and copies of the letters to ISD with requests for their comments, to no avail. In such situations I do not give up chasing the traders. Eventually, after ten months, I received the following letter from ISD dated October 14, 2005:

We would like to inform you that we haven't given you a reply because we were trying to settle things with the client ourselves. As you know, Mrs Joan Micallef St John bought a Gelato Facile from the Trade Fair for Lm95, and paid a deposit of Lm15. This was after she was given a full demonstration as well as an ice cream tasting.

When a person buys something at the Trade Fair, as you know, the order cannot be cancelled. We offered the client to change the product for something worth around Lm95, but the client insisted that she wants something for Lm15, which is unacceptable.

We want to make it clear that our sales person did not ignore Mrs Micallef St John, but he told her what the policy is, and she kept refusing our offer.

Should you require further information, kindly contact us. (Mrs Rita Borg, F/International Sales Direct)

With a particular focus on the Lm15 deposit, as explained in the above letter, ISD's policy is clear and simple. "It is not returnable", and in all fairness International Sales Direct are entitled to adopt such a policy. Here follows an excerpt from one of the letters which the complainants sent to ISD:

My wife came twice to your showroom to use the deposit to purchase something else instead but your staff's reply was always in the negative.

We are not asking you to refund us the deposit, but to exchange it with something useful worth around Lm15 or more. (Edward Micallef St John)

Before featuring this case I contacted Mrs Borg, ISD's managing director, in the hope of resolving this case. In fact I do this in many cases, to the traders' satisfaction. However Mrs Borg was adamant and, in all fairness, she is perfectly entitled to adopt a strict approach by insisting on such a policy. In my final telephone conversation with Mrs Borg, I told her that Mr and Mrs Micallef St John are willing to purchase something worth up to Lm25. However she told me that her cheapest item is Lm75, stressing that she did not have anything cheaper.

In any case it's her business but in my position regarding consumers, in accordance with the consumers' right to be informed, I feel morally obliged to inform you, dear consumers, about such policies. In the prevailing scenario, I must feature our list of suppliers/traders who adopt a "money back" policy.

Shops with a'money back' policy

This is a very important issue and we must encourage suppliers who adopt a 'money back' policy by giving them our loyal custom. After having bought a product or a service, for various reasons ranging from faulty products to dissatisfaction, customers often ask for a refund. When it comes to dealing with such situations there is a significant difference in policy between local suppliers and suppliers in Europe or the United States.

Generally, once local shops/suppliers get hold of your hard-earned cash, they tend to hang on to it no matter what. Moreover, whenever the customer is justified in expecting a refund, at best, some traders may offer a credit note, sometimes with an expiry date.

However we have a list, albeit a short one, of local suppliers who do have a 'money back' policy. Of course these are subject to specific conditions:

Borg Barthet Home & Hardware of Guardamangia, tel: 2125-1666, under the following conditions:

1. The goods must be returned within a week from date of purchase with the fiscal receipt.

2. The goods must be in their original packaging and in a saleable condition. Care has to be observed when removing the product from its packaging. No part of the packaging should be torn or discarded. Care has to be observed when removing the product from its packaging. No part of the packaging should be torn or discarded. Care has to be taken to open blister packs and, if in doubt, ask the salesperson at the time of purchase.

3. This policy does not apply to special orders of specific items which have been imported for the customer, and paint mixed to a specific shade as requested by the customer.

4. These terms are not applicable to key cutting services.

E. Maistre Stationers & Rubber Stamp Manufacturers of 162, Melita Street, Valletta, tel: 2122-4888, 2123-1621, under the following conditions:

1. Return of fiscal receipt.

2. Goods returned must be in a saleable condition.

Cartridge World of Bella Vista Street, San Gwann, tel/fax: 2138-6688 under the following conditions:

1. The refilled cartridge is returned.

2. Return of fiscal receipt.

In the prevailing scenario, I take the opportunity to invite suppliers who adopt a 'money back' policy and wish to be included in this list to write to me. We hope to add more outlets to our list.