Returning items that have just been bought is quite a common occurrence, and consumers often have varying expectations about how retailers should handle such situations. Some are satisfied with being able to exchange the item or receiving a credit note, while others may expect nothing less than a cash refund. However, regardless of these personal expectations, there is a legal framework that clearly defines consumers’ rights. Whether a consumer is legally entitled to more or less than a credit note when returning a purchased item largely depends on the reason why one wants to return it.
Credit notes and faulty products
In cases where a product is defective, the Consumer Affairs Act stipulates that the retailer must first attempt to repair or replace the defective item. If these options are not feasible or would cause significant inconvenience to the consumer, the latter may decline the repair or replacement and request a refund instead.
This legal right allows consumers to buy a replacement product from any seller. Accepting a credit note in such situations diminishes consumer rights because it ties the consumer to the same seller and imposes additional restrictions, such as limited validity periods or usage conditions.
In fact, credit notes often come with terms like expiration dates or limitations on the type of goods they can be used on. If the consumer cannot find a suitable product or does not use the credit note within the specified time frame, its value is lost. Thus, to protect their rights, consumers should refuse credit notes for faulty products and insist on a cash refund.
Any shop notices stating “No cash refunds” should be disregarded, as company policies cannot override consumers’ legal rights.
If consumers, despite knowing their right to a refund, choose to consider a credit note, they should carefully review its terms. This includes confirming that the seller has items they may need, and understanding any restrictions. Importantly, once a credit note is accepted, requesting a refund later may not be possible.
The right to a refund also applies to faulty goods bought online. In such cases, if sellers require the faulty product to be returned before issuing a refund, the cost of return shipping must be borne by the trader.
Consumers should refuse credit notes for faulty products and insist on a cash refund
Credit notes for unwanted products
When consumers return items due to a change of mind or a rushed purchasing decision, they generally do not have any legal rights to a remedy. Consumers should be aware that when they buy goods, the sales transaction is final and legally binding. This means they cannot simply decide to return unwanted items and expect a remedy from the seller.
However, many retailers implement voluntary return policies as a gesture of goodwill. These policies often allow consumers to return unwanted goods and choose between an exchange, a credit note, or, in some cases, even a cash refund. Such options are typically provided on condition that the original receipt is presented and the items are returned unused and in their original condition.
In situations where a credit note is offered under these voluntary policies, consumers should appreciate that they are receiving more than what they are legally entitled to. It is also important to note that if a seller chooses not to issue a credit note for an unwanted item, consumers have no legal right to demand one.
Consumer and seller responsibilities
When accepting a credit note, consumers should read and understand the terms of use. This includes checking for restrictions on the types of products that can be bought, noting the expiry date, and ensuring they do not lose the credit note, as replacements are usually not issued. Sellers, on their part, must ensure that all conditions related to the use of the credit note are clearly written and accessible to consumers.
Although credit notes can provide extra benefits to consumers and help foster a positive relationship between consumers and traders, there are situations where they may limit consumers’ legal rights. By understanding their rights and making informed purchasing decisions, consumers can safeguard themselves and ensure they receive the remedies guaranteed by consumer protection legislation.
For any issues related to consumer rights and responsibilities regarding credit notes, consumers can reach out to the Office for Consumer Affairs at the MCCAA via the ‘Contact us’ form on the MCCAA website below. The MCCAA can also be contacted by calling 8007 4400 or by sending a private message on the MCCAA Facebook page.
Odette Vella is director, Information and Research Directorate, MCCAA.