What are the laws around refunds?

Asked by: Prof. Jamie Nienow  |  Last update: October 19, 2026
Score: 4.6/5 (21 votes)

In the U.S., there are no federal laws requiring businesses to offer refunds for returned items, making it legal for stores to set their own policies. However, businesses must clearly post their return policies, and they are legally required to provide refunds for defective products or if they fail to meet advertised, implicit warranties.

Does a company legally have to give you a refund?

You must offer a full refund if an item is faulty, not as described or does not do what it's supposed to. In some cases you must offer a refund if the customer changes their mind.

What are my rights if a company won't refund?

You can notify the consumer protection division of your local district attorney's office of any violations, or file a complaint with our office using our online complaint form.

In what circumstances can you not get a refund?

Consumers are not entitled to a repair, replacement or refund under the consumer guarantees if: they got what they asked for but simply changed their mind, found the product cheaper somewhere else, or decided they didn't like the purchase or had no use for it.

Do you have a legal right to get a refund?

Generally speaking, when you buy goods you enter into a legally binding contract and you have no right to return them for a refund. However, there are circumstances where a right to return goods may arise.

What Are Consumer Rights For Refunds? - CountyOffice.org

39 related questions found

What is a valid reason for a refund?

Did not meet expectations: Something about the product does not meet the customer's expectations; for instance, the quality, features, price-to-value ratio, etc.

Is denying a refund illegal?

Business rights and responsibilities

A business can't take away a consumer's right to a refund or replacement for products or services that don't meet the consumer guarantees. It's illegal for businesses to try to cancel these rights in store policies or terms and conditions.

Can I sue a company for refusing to refund me?

Many unethical and greedy companies, businesses and corporations are withholding your money. You don't have to accept a refund denial. Consumers have legal rights, if you have been denied a refund it may take a lawsuit to get what you deserve.

Is there a no refund policy in Canada?

Canada. It is legal to have a no refund policy in place in Canada. According to the Government of Canada, there is no legal requirement for businesses to offer refunds or returns. However, you do have to clearly post your policy in a place where your customers can easily see it, ensuring they're aware of your protocols ...

Can you force a company to give you a refund?

Consumers seeking refunds can contact organizations like the Better Business Bureau, state consumer protection offices, or the Federal Trade Commission. Start by documenting your purchase and communication with the company. File a formal complaint with these agencies if direct resolution fails.

Is it illegal to not refund a customer?

Under the Consumer Rights Act 2015 (CRA), consumers may be entitled to a refund, replacement, repair and/or compensation where goods are faulty or not as described. They are also entitled to a refund and/or compensation where the seller had no legal right to sell the goods.

What should I do if a business is not giving me my refund?

Get Outside Help

  1. Contact your state attorney general or state consumer protection office. ...
  2. Contact a national consumer organization. ...
  3. Contact your local Better Business Bureau The Better Business Bureau is made up of organizations supported by local businesses. ...
  4. File a report with the FTC.

What is Section 42 of the Consumer Rights Act?

Section 42: Consumer's rights to enforce terms about digital content. 204. If the digital content is not of satisfactory quality, fit for purpose, or does not match the description, the digital content will not conform to the contract.

How do I complain about not getting a refund?

Any aggrieved consumer can register his / her grievance by either calling the toll free number 1800-11-4000 or 1915 and talk to an agent or register himself once in the portal, get an userid and password and lodge his grievance himself attaching necessary documents, if any.

What are my consumer rights?

Satisfactory quality – your goods shouldn't be faulty or damaged, and of at least satisfactory quality. For example, second-hand goods aren't held to the same standards as new. Fit for purpose – you should be able to use it for the purpose they were supplied for.

What can I do if I'm refused a refund?

It might be tricky to get your money back, which is why it's so important to know where you stand. If you can't get the support you need from the retailer in the form of a refund, repair or replacement, you can file a complaint with the company. If that still doesn't help, you can contact the Consumer Ombudsman.

What is an illegal refund?

Return fraud - also called refund fraud or refund theft - is the act of abusing a return or refund process for monetary gain. There are many types of return fraud, but most commonly, it consists of obtaining an item from a store (through purchase or theft), and then defrauding the store by returning it for a refund. ‍

How are no refunds legal?

In some places, businesses are allowed to set their own refund policies, including No Refund policies, as long as they are clearly communicated to the customer before the purchase; Even in jurisdictions where a No Refund Policy may generally be legal, there are often exceptions.

Which two are rules applicable to the issue of refunds?

These rules apply to issuing refunds: You can't refund more than either the original receipt amount or the remaining unapplied amount. You can only refund original receipts that were either remitted or cleared. You can't issue a credit card refund unless the customer payment was made by credit card.

Do I legally have to give a refund?

Many retailers offer exchanges or refunds once you have a receipt and they are returned within a certain amount of time and in a saleable condition with all the original labels, tags and packaging. However, this is shop policy and represents a gesture of goodwill – it is not a legal requirement.