Unwanted gifts and return policies

This Christmas, we may have received gifts that we either do not like or that do not fit.

The first thing that comes to mind in such situations is to exchange the gift or get a credit note for a future purchase. Very often, we do not realise that shops have no legal obligation to accept returns unless an item is faulty, not as described or is unfit for its purpose in some way.

Despite the law, most shops choose to provide a 'goodwill' returns policy and offer the possibility of exchange or credit note for certain items. Some retailers do even more than that and offer cash refunds for unwanted gifts. These return policies are usually the reason behind purchasing from particular stores rather than from others.

As receivers of unwanted gifts, it would be wise to check about these returns policies as soon as possible. Timing is fundamental and crucial. Return policies can be as flexible or as rigid as the shop likes and these usually vary from one shop to another.

Most shops impose time-limits that can range from a few days to a number of weeks. There might also be return policy restrictions. Most shops, for instance, impose the condition that non-faulty products can only be returned if they are unused and in perfect condition in their undamaged original packaging.

There may also be additional restrictions regarding made-to-measure or personalised goods, or if the item is a perishable one. Items, such as earrings, make-up and clothing, are very often excluded from a shop's returns policies for hygiene reasons.

These kind of returns may sometimes also require the proof of purchase, such as a fiscal or gift receipt. Some shops may be more flexible and only require that the original tags or packaging are kept intact.

If the sales season has already kicked in and we want to exchange unwanted gifts originally bought at a reduced price, most likely we will be offered the exchange value or a credit note of the current price.

Regarding gifts purchased online, by post or by telephone, the Distance Selling Regulations provide us with an added legal right - a cooling-off period during which we can return goods or request a full money refund. In Malta, this period amounts to 15 days, but can vary from one European member state to another.

This cooling-off period starts from the day the goods are received by the buyer. Hence, in case of gifts, we will need proof of purchase and to know the date the gift was received by the buyer, to return it under these rules.

We may have to pay postage costs to send the goods back. The law grants this charge. Therefore, it can only be waived by the retailer. Some retailers may also decide to extend the cooling-off period. Such policies can only be verified by checking the terms and conditions on the seller's website.

Shops can only dictate return policies as long as the unwanted goods are not faulty. Should the goods not function properly or are not as described, we are legally entitled to three possible remedies: repair, replacement or refund.

If we are entitled to a cash refund, and a credit note is offered instead, we should keep in mind that credit notes are not equivalent to cash, because they usually carry terms and conditions that somewhat limit consumer rights. Moreover, once a credit note is accepted, we cannot change our mind.

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

customer@timesofmalta.com, odette.vella@gov.mt