Is there a legal limit on restocking fees?

Dear Consumer Ed:

Is there a legal limit on restocking fees?

Consumer Ed says:

Restocking fees have become more common, particularly in the electronics market, since once an item is sold, it cannot be resold as new. In most circumstances, the amount of “restocking fees” is not limited because retailers control their own refund/exchange policies. Although the collection of these fees is generally permissible, companies must provide notice of their policies (e.g., posting on website or in-store signage) prior to the completion of sale transactions.  Companies that only disclose these policies on the backs of receipts do not offer sufficient notice because the receipt is printed after the transaction.

If you believe the store failed to adequately disclose its restocking fees prior to your purchase, you may submit a complaint to the Georgia Department of Law’s Consumer Protection Division by visiting consumer.ga.gov or calling 404-651-8600 or 1-800-869-1123 (toll-free in Georgia, outside of the metro Atlanta calling area).

Submit your own question to Consumer Ed.  Remember…we do not give legal advice. Always consult a lawyer about legal issues.

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