When returning goods, consumers’ legal rights emanate from two important pieces of legislation: the Consumer Affairs Act and the Consumer Rights Regulations. These protect consumers when returning faulty goods and, in case of online purchases, also unwanted goods.
Before deciding whether to accept a credit note, consumers should first consider why they need to return the goods. If the goods in question are faulty, or are not as agreed when the sale was finalised, then the law protects them and gives them specific rights.
In the first instance, consumers are entitled to ask that the goods are either repaired or replaced free of charge. If neither of these two remedies is possible, or if opted for may cause the consumer a significant inconvenience, then they may request a refund.
If in this situation the consumer is offered a credit note, it is not in their best interest to accept it. Credit notes are not the equivalent of cash, so agreeing to receive a credit note would mean getting less than one is entitled to. Usually, credit notes can only be redeemed at a specific outlet or chain of shops and have terms and conditions that must be observed.
Consumers should also be aware that in case of defective goods, any shop policies stating that they offer ‘no refunds’ cannot be applied. Shops’ return policies can only provide consumers additional benefits, not diminish them.
The legal right to a refund also applies in the case of goods bought online. In situations where such products are defective and the seller requires the consumer to return the faulty product to issue a refund, any transport costs must be borne by the trader.
If the goods are not faulty and consumers are offered a credit note, they should accept it
Consumers may also wish to return goods because they have made a wrong purchase decision or change their mind. In such situations, the trader has no legal obligations towards the consumer. This means that the trader is not obliged to accept back the unwanted items or to offer the consumer a remedy.
Fortunately, most sellers have voluntary return policies that allow consumers to return unwanted goods within a specified time limit. These sellers usually offer different options, such the possibility of exchanging the product or a credit note. Some sellers even offer money refunds. In such situations, if the goods are not faulty and consumers are offered a credit note, they should accept it, as they would be receiving more than they are legally entitled to.
If the unwanted goods have been bought online, the Consumer Rights Regulations entitle consumers to a cancellation period that starts the moment they place the order and ends 14 days after they receive the goods. During this time, consumers can change their mind, cancel the sale and request a full refund of the money paid.
If the unwanted product has already been delivered to the consumer, the latter may or may not have to incur the cost of returning it to the seller. This depends on whether, through the seller’s website or contract of sale, the consumer was informed about this cost before the sale was concluded. If not, then this cost must be paid by the trader.
Whenever consumers accept a credit note, they should read and observe its terms of use. They should give special attention to the credit note’s expiry date and to whether there are any restrictions on the type of goods that can be purchased with the credit note. Consumers are also responsible to not lose the credit note. On their part, sellers are to ensure that any conditions of use are clearly written on the credit note.
Any disputes or queries regarding credit notes may be referred to the Office for Consumer Affairs by sending an e-mail to info@mccaa.org.mt, by calling 8007 4400 or by sending a private message on the MCCAA’s Facebook page.
Odette Vella, Director, Information and Research Directorate