“Good morning, Wendy,” began “Sir Mafela’s” Twitter inquiry, “They don’t give cash refunds, only vouchers. And is the 10 days even legal?”
Attached was a Tekkie Town receipt with the following printed on it: “If you are not 100% satisfied with your purchase, we will gladly exchange your product, subject to:
• You have proof of purchase and the product is still in its original packaging;
• It is within 10 days after purchase;
• The items are in a sellable condition.
“Gift vouchers are received in exchange for unwanted items. If you cannot find a suitable substitute in store, we will gladly issue you with a gift voucher as we value your continuous support.”
As I told the good sir, if there is nothing wrong with a product — you just decide you don’t want it any more — no store is legally obliged to take it back and refund. The Consumer Protection Act’s (CPA) section on returns’ rights only refers to the return of products — bought in a physical store — which become defective or unfit for purpose within six months of purchase.
When that happens, and provided an assessment doesn’t reveal user abuse caused the problem, you’re entitled to your choice of a refund, replacement or repair. But if the product is perfectly sound, but you no longer want it for whatever reason, you do not have a legal right to return a store-bought product. And you certainly don’t have the right to demand a refund.
If a retailer voluntarily opts to take back such “change-of-heart” purchases as a customer service, they are fully entitled to come up with the rules around that: within 10 days, for example (30 days is the norm), with proof of purchase, original packaging and “in a resaleable condition”.
Essentially they are doing their customers a favour, but the misunderstanding of this issue is widespread, hence retailers are constantly being falsely accused of denying their customers’ right to a refund.
And here’s my point: retailers such as Tekkie Town are largely to blame for this because their wording is too vague. “Not 100% satisfied” because they don’t love them as much as they did in the shop or because the stitching came loose within a week?
A decade after the CPA came into effect, the overwhelming majority of retailers’ returns policies only apply to the return of non-defective products in their returns policies. But they don’t spell that out and few even mention the CPA. What they should be doing is drawing a very clear distinction, in their returns policies, between defective and non-defective returns. If consumers saw that over and over, on in-store signs, printed on their invoices and till slips, and echoed on their websites, that would be a powerful form of mass consumer education on this issue. Could it be that they really don’t want their customers to know their CPA right of return should their purchase break within six months?
The reality is that consumers have heard about the CPA’s refund provisions, so when they see a sign that says 'no refunds', they think their rights are being trampled on. It’s all very unfortunate and unnecessary.
The reality is that consumers have heard about the CPA’s refund provisions, so when they see a sign that says “no refunds”, they think their rights are being trampled on.
It’s all very unfortunate and unnecessary.
Given the incredibly steep increase in online shopping, at the risk of confusing the issue, I should point out that different rules apply to online purchases, which fall under the Electronic Communications and Transactions Act.
When you buy something online, because you haven’t had a chance to fully interact with the product before buying it — such as trying on a pair of shoes — you have the benefit of a seven-day cooling-off period. That means even if the product is not defective in any way, you get to simply change your mind — you don’t have to say why — and send it back, at your cost, for a full refund.
The act states: “A consumer is entitled to cancel without reason and without penalty any transaction and any related credit agreement for the supply of goods within seven days after the date of the receipt of the goods; or of services within seven days after the date of the conclusion of the agreement. The only charge that may be levied on the consumer is the direct cost of returning the goods. The refund must be made within 30 days of the date of cancellation.”
That’s regardless of whether the item was on sale or not.
But many online retailers insert self-serving terms and conditions. Such as: “Should an opened product be returned, a 25% restocking fee will be charged, provided that all the original packaging and all materials are provided with it.”
So read all the Ts and Cs so you know which online retailers to avoid.
Getting back to in-store purchases, given that’s how most South African consumers do their buying, I’m making two appeals today:
• To consumers: share with me photos of returns policies as they appear on store signs and receipts and I’ll share them with a mark out of 10 for full, accurate disclosure; and
• To bricks and mortar retailers: I’ll make it easy for you. Here’s an example of what your returns policy should look like. Please let me know if you decide to make it your own:
Non-defective goods: these are “goodwill” refunds as retailers are not legally obliged to take back non-defective merchandise at all. If we choose to do so, at our discretion, the following terms and conditions will apply: we will exchange the item or issue you a credit provided you have proof of purchase and it is in a saleable condition (not used or worn) within x days of purchase.
Defective goods: We will repair, refund or replace defective goods if returned within six months and with proof of purchase. The Consumer Protection Acts gives the customer the right to choose the remedy. We are entitled to send the item for technical assessment to rule out user abuse. If you choose a repair and the product fails again in any way within a three-month period, we may not insist on repairing the item again: you get to choose between a refund or replacement.
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