One of the most common questions consumers ask is whether they are entitled to a refund for products they wish to return after purchase? The answer depends on why the consumer wants to return the product.
If the product is faulty, consumers are protected by the Consumer Affairs Act. When goods are faulty, the law provides that the retailer should, in the first instance, repair or replace the defective product.
When replacement is opted for, it should be the same as the original item bought by the consumer. If a replacement is not possible, then consumers may request a cash refund.
When, such as in this situation, consumers are offered a credit note, it should not be accepted because it means getting less than what the law grants. Shops’ notices declaring ‘No Refunds’ must be ignored in such situations.
These kind of notices cannot take away any of the consumers’ statutory rights under the Consumer Affairs Act.
A credit note is not the equivalent of cash. It gives much less flexibility than money because it can only be redeemed at a specific outlet or a chain of shops.
Moreover, credit notes usually carry specific terms and conditions which must be observed, such as using the credit note within a particular time. Hence, it is not advisable for consumers to accept a credit note as a form of redress when goods are faulty.
It is not advisable for consumers to accept a credit note as a form of redress when goods are faulty
If, on the other hand, there is nothing specifically wrong or faulty with the goods purchased and consumers simply no longer want them for whatever reason, this is regarded as a change of mind situation.
If consumers are offered a credit note, it is more than what legally they are entitled to. In these circumstances, shops are free to apply their own return policies, which consumers have to adhere to.
Fortunately, many 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.
When consumers are given a credit note, they should immediately check out what restrictions apply. It is best for both parties if the terms on how the credit note should be used is written on the credit note itself to avoid any misunderstandings and doubts.
odette.vella@mccaa.org.mt
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.