Refund or credit note?

Most consumers feel confused about what exactly they are entitled to when they decide to return a product to the shop where it was purchased. The right answer depends on the reason why the product is being returned.

If there is a fault with the purchased goods, then consumers are protected by the Consumer Affairs Act, which entitles them to either repair or replacement, or to a part or full refund of the price paid. So, strictly speaking, when consumers are legally entitled to a refund, being offered and accepting a credit note means getting less than what the law grants.

A credit note is like a voucher. It can only be redeemed at a particular retail outlet. Moreover, usually credit notes carry specific terms and conditions which must be observed, such as using the credit note within a particular time limit. It is therefore advisable that before accepting a credit note, consumers should first check out its conditions.

If, on the other hand, there is nothing wrong with the goods and the shop willingly accepts the goods back, then a credit note is more than what consumers are entitled to.

In these circumstances, it would be regarded as a change of mind and shops are free to apply their customer care policies.

Fortunately, most retailers are willing to exchange or refund goods even if there is nothing wrong with them, provided consumers have proof of purchase and meet their terms and conditions.

It is important that consumers are immediately informed what restrictions apply when they are given a credit note. It is best if these terms are written on the credit note to avoid misunderstandings and doubts.

Ms Vella is senior information officer, Consumer and Competition Division.