Time to Return | Key facts for e-com return policies
Owners of e-commerce businesses need to be clear on their obligations under the Australian Consumer Law (ACL). We’re empowered, future-thinking business owners now, and we don’t rely on templates.
Quickfire question: are you using the templated Ts & Cs that came with your e-commerce website?
If the answer is yes, then it’s time for a revamp. There’s no guarantee that they’ll protect you and your customers in the ways you need, or that they’ll make you compliant with Australian Consumer Law—the sheer amount of Shopify Ts and Cs that I’ve redrafted for my clients is testament to that!
Read more about website terms and conditions here.
It’s so important to get your Ts and Cs aligned with your unique business and offering, and this includes your return and refund policy.
If that’s not enough to convince you, then it's worth noting that “I relied on the Ts and Cs that came with my online store” is not a legal defence when they don’t cut it.
So, what are your obligations under the ACL, and what are the exceptions? Read on to find out.
What do I have to do if a client wants a refund?
This is one of the most common questions I am asked by e-commerce business owners. So let’s get clear on what the ACL says about a business’ obligations when this happens.
By now, you know what I’m going to say: it all starts with your business documents. Here are the top 5 things you’ll need to make sure are included in your Ts & Cs:
Have your refund policy clearly outlined and accessible for consumers to review and consider before they purchase from you.
Outline when you will accept a refund request (defective products, if the wrong product was provided, wrong size, wrong choice, etc).
Explain your refund request policy, in clear and simple terms (what must a consumer do, and when, to make a refund request).
Explain the circumstances where you won’t grant a refund request (e.g. change of mind).
Outline any alternative options and under what circumstances they apply (such as a credit or an exchange).
Hint: To ensure legal protection, it’s vital that an e-commerce business has its click wrap Ts & Cs properly set up and implemented at the payment page/checkout.
Consumers’ rights do have limits
While you’re working to make sure you’re treating returns and refunds in a way that complies with ACL, it’s important to remember that the circumstances where you may not be required to provide a refund are very reasonable:
If a customer changes their mind
If a customer found a cheaper option elsewhere
If a customer has damaged the product by using it in a way that is not recommended
So, when your Ts and Cs clearly outline the process and conditions of your return policy, they protect the consumer as well as you and your business.
If you found this article helpful, you might like to read more in our resource Legal Advice for Small Business: The Ultimate Guide.
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