When consumers return goods they are not always aware of what rules apply and whether they are entitled to claim a refund or should instead accept a credit note. Very often, consumers are offered a credit note by the seller but are not sure if they should accept it or insist on asking for a refund.
The rules on returning items depend on whether there is a fault with the product purchased or not.
Change of mind situations
Sellers are not legally obliged to issue a refund when consumers return goods that are not faulty. Fortunately, most retailers adopt return policies that allow consumers to return unwanted products and exchange them with something else. These sellers often also offer credit notes in situations where consumers do not find anything to their liking when it comes to exchanging the unwanted product. To avail of such policy, consumers are usually obliged to follow specific rules, such as returning the unwanted good by a specific date, unused and with the tags still attached.
When faulty goods can neither be repaired nor replaced, consumers may cancel the sale and request a refund
When given a credit note consumers have the responsibility to read and observe any terms of use. To avoid misunderstandings, the credit note’s terms and conditions should be written on the credit note. Special attention should be given to the expiry date and also to whether there are any restrictions on the type of goods that can be purchased with the credit note. Consumers must also make sure not to lose the credit note because if they do, they may end up with nothing.
Faulty goods
The law states that the goods consumers purchase must be of satisfactory quality, as described and fit for the purpose for which goods of the same type are normally used. When these requirements are not met, consumers have the right to go back to the seller and claim a remedy. If the faulty goods can neither be repaired nor replaced, consumers are entitled to a cash refund. If, in such a situation, consumers are offered a credit note, they should not accept it and instead insist on a refund.
If consumers are inclined to accept a credit note even though they are aware that they are entitled to a refund, before doing so, they should remember that a credit note is much less flexible than money, as it can only be redeemed at a particular retail outlet or chain of outlets.
Furthermore, once a credit note is accepted, then it may not be possible for the consumer to return it and instead ask for a refund.
odette.vella@mccaa.org.mt
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.