Returns Policy

What is a returns policy?

A returns policy can be used by a business in the United Kindom to explain its process for accepting returns. The returns policy will explain how consumers can return products that have been bought in stores and/or online.

A consumer is an individual who purchases goods and/or services from a business for personal use. Consumers have certain rights and protections, including the right to a refund, repair or replacement in certain circumstances.

Is it mandatory to have a returns policy?

No. It is not obligatory to hold a returns policy. Many businesses choose to hold this kind of policy to:

• explain whether customers will have longer than the legal minimum timeframe to return faulty goods
• confirm whether customers can return items to a store if they change their mind
• confirm information about postage, shipping and proof of purchase
• confirm whether any items are excluded from returns

What kind of organisation can use this returns policy?

This policy can be used by any business that sells goods to consumers. It is not designed for use in commercial (business-to-business) sales agreements. A consumer is an individual who purchases goods and/or services from a business for personal use.

What should be done once the policy has been finalised?

Once the policy has been completed, it should be kept in an accessible place. For an online retailer, the policy should be placed on the retailer's website. For an in-store retailer, the policy will usually be placed in a prominent location in the store.

Once the policy has been put in place, the business should process returns in accordance with the policy.

What other documents should be used with a returns policy?

A business that provides goods or services to consumers will hold a returns policy in conjunction with other important documents such as:

• a shipping policy
• a complaints policy
• terms and conditions of sale - for in-store purchases
• terms and conditions of sale - for online purchases
• a website privacy policy

What should a returns policy contain?

The policy will:

• explain how a consumer can cancel or return an order if they have bought it online and have changed their mind about it
• explain whether a consumer can return a product if they have bought it in a store and have changed their mind about it
• explain how returns can be made if a product is faulty

The policy will also explain:

• the time limit for returning items
• who will pay for postage

What laws apply to a returns policy?

The main laws that are relevant to consumer rights and returns are:

• The Consumer Rights Act 2015
• The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

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