As consumers we may find ourselves in situations where we buy a product and then we decide to return it to the seller and ask for a refund. Are we entitled to make such a request? Is our claim for a refund legally justified?

When we physically purchase goods from a shop, the purchase we make is final and the law does not give us the possibility to change our mind and ask for a refund unless there is something wrong with the goods bought.

For instance, if after purchasing a wrist watch we receive a similar one as a gift, the law does not give us the right to return the watch and ask for a refund.

We may be allowed to exchange one of the watches but only if the seller’s return policies allow such an exchange. In fact, retailers are under no obligation to issue a refund if the goods we are returning are as promised during the sale, free of defects and fit for the purpose they were bought for.

It is, however, important that we keep ourselves updated about the shop’s return policies before we actually finalise the sale. We should also be aware of the terms and conditions of such policies, such as by when we should return the goods, whether the proof of purchase is required and in what condition the goods should be returned.

Once we make an agreement with a seller about returns or exchanges, this becomes part of our sales contract and the seller is legally obliged to honour the agreement. Ideally, we ensure that exchange policies are written down on the proof of purchase to avoid situations where the seller denies that such an agreement was made before the contract of sale was concluded.

When goods are faulty or do not conform to the sales agreement, consumers may request sellers to repair or replace the defective products. A refund may, however, only be claimed when neither repair nor replacement are possible solutions or, if opted for, will cause consumers a significant inconvenience.

Consumers should, however, be aware that they may find themselves in situations where the law gives them the right to a refund and the seller instead offers a credit note. If this happens, consumers should not accept the credit note because if they do, they would be getting less than what the law grants.

A credit note is not the same as 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 that must be observed, such as using the credit note within a particular time limit. When we accept a credit note, we will be entering new contract.

Consumers should also be aware that in case of defective goods, shop’s notices declaring ‘No refunds’ must be ignored as these kind of notices cannot take away or diminish consumers’ statutory rights.

Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.

odette.vella@mccaa.org.mt

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