7 Customer Refund Rules That Every Business Owner Should Know
Hopefully, if your business is one that occasionally has to refund a customer, you have all the rules related to refunds in place and, therefore, do not require your commercial lawyer to represent you in a court case because a customer is suing you for a refund.
These rules are in place to protect not only customers but also businesses; however, if they are not known or misunderstood, it can cause either party to feel they have been wronged by the other.
We have outlined the basics of each rule below, but please do not consider what we have written as legal text. If you have any queries about refunds and their legal implications, please consult your commercial lawyers.
Rule #1: A customer is not entitled to a replacement or a cash refund simply because they change their mind and no longer want the item they have purchased. You might choose to have an exchange policy, but there is no legal obligation for you to refund because of a change of mind.
Rule #2: When the goods or services that you have sold the customer have a problem, then the customer is entitled either to a replacement or a refund. A replacement can be a like-for-like or an alternative if the customer is happy to accept it.
