A customer wants a refund — what now?

Your legal obligations depend on why the customer wants a refund and how they bought from you. Work through the steps below to determine the correct response.

1. Is the product faulty, not as described, or unfit for purpose?

If the goods do not meet statutory quality standards (satisfactory quality, fit for purpose, as described), the customer has legal rights to a remedy. Your shop policy does not override these rights.

Tier 1 - Short-term right to reject: Within 30 days of delivery, consumer can reject goods and receive full refund
Tier 2 - Right to repair or replacement: After 30 days, consumer can request repair or replacement at trader's cost
Tier 3 - Final right to reject OR price reduction: After one failed repair/replacement, consumer can reject or claim price reduction

Accepting returns and giving refunds (opens in a new tab)

Handle consumer complaints about faulty goods

Step-by-step procedure for applying the tiered remedy system: 30-day refund, repair/replace, final rejection

2. Did the customer buy online, by phone, or at their home?

If the sale was made at a distance (online, phone, mail order) or off-premises (at their home, at a trade fair), the customer may have a 14-day cooling-off period to cancel for any reason, even if the product is not faulty.

Cooling-off period: 14 days from delivery
Extended period: 12 months if cancellation rights not provided
Refund deadline: 14 days from receiving returned goods
Return shipping: Customer pays unless seller offers free returns
Restocking fees: ILLEGAL - cannot charge
Deduction for use: Only if customer handled goods beyond checking
Digital content: Cancellation lost if download begins with consent

Distance and off-premises selling requirements

14-day cancellation right, refund obligations, exemptions, and how to process distance selling returns

3. Check the key timeframes

The customer's rights depend on timing. Within 30 days: full refund for faulty goods. Within 6 months: fault is presumed — you must prove otherwise. After 6 months: customer must prove the fault. For distance sales: 14 days from delivery to cancel.

30 days: Short-term right to reject (full refund)
14 days: Trader must process refund
6 months: No deduction for use on final rejection (except motor vehicles)
6 months: Presumption goods were faulty at delivery (trader must prove otherwise)
7 days: Extended rejection period after failed replacement (if original 30 days passed)

Consumer rights compliance for traders

Comprehensive guide to your obligations under the Consumer Rights Act including the 6-month presumption and burden of proof

4. Change of mind (in-store purchases)

If the customer bought in your shop (not online or at distance), the product is not faulty, and it was not misrepresented, you have no legal obligation to offer a refund. Any returns policy you offer for change of mind is voluntary and can have conditions.

However, you must still honour any voluntary returns policy you have advertised.

5. Process the refund correctly

If the customer is entitled to a refund:

Process it within 14 days
Use the same payment method as the original purchase
Do not charge any fees for processing
For distance sales, refund the original standard delivery cost too
Do not charge restocking fees (illegal for distance sales)

Handling customer refund disputes

A customer wants a refund — what now?

Handle consumer complaints about faulty goods

Distance and off-premises selling requirements

Consumer rights compliance for traders

4. Change of mind (in-store purchases)

5. Process the refund correctly

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