April 11, 2012

Refund policies for online merchants

Dear Consumer Ed:

I purchased some merchandise online.  The company shipped the order, which I later returned.  The merchant never posted a credit, so I notified my credit card company and requested a chargeback.  The merchant is now saying, "All refunds are for merchandise only.”  Can they do this?  I'm pretty sure the website did not have this language before, but I can't be sure.

Consumer Ed says: 

It sounds as if the merchant is saying that when an item is returned, they will only give store credit or exchanges rather than a full refund.  In Georgia, merchants are not required to give a refund or credit unless the merchandise is defective, or if the buyer was persuaded to purchase the item based on deceptive or misleading advertising. 

Most sellers offer some sort of refund or credit because they want customers to return, not out of any legal obligation. 

However, sellers are required to clearly state their return/cancellation policies. If you were sure that the website did not say "all refunds are for merchandise only" at the time of your purchase, then you might be able to claim that it was deceptive of them to misrepresent your refund or cancellation rights. But if the seller did disclose this policy previously, then you are probably out of luck. 

If you believe the product you bought was defective, that the advertising was misleading or deceptive, or that the website did not disclose the return policies before you made the purchase, you can submit a complaint to the Better Business Bureau at www.bbb.org; to the Federal Trade Commission at www.ftc.gov; or to the Georgia Attorney General’s Consumer Protection Division by calling 404-651-8600 or 1-800-869-1123.

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