Applies to all US retail stores regardless of state
Return & Refund Policy
Compliant return and refund policy covering the FTC cooling-off rule, state-mandated refund disclosures, restocking fees, and gift return procedures.
What this document covers
While federal law does not mandate that all retailers offer refunds, the FTC's Cooling-Off Rule requires a 3-day cancellation right for sales made door-to-door or at locations other than the seller's normal place of business. More critically, most states have laws requiring retailers to clearly post their return policy — and if no policy is posted, some states mandate full refunds within a set period (e.g., California requires full refunds within 30 days if no policy is displayed). The FTC Act also prohibits deceptive practices, meaning return policies must be clear, conspicuous, and honored as written. This document establishes your store's return, exchange, and refund procedures in compliance with federal and state requirements.
Key sections included
- Return window and conditions (with/without receipt)
- FTC Cooling-Off Rule compliance (where applicable)
- Refund method (original payment, store credit, exchange)
- Restocking fee disclosure requirements
- Gift return and exchange procedures
- State-specific posting requirements
- Online/e-commerce return procedures
- Exception categories (final sale, perishable, hygiene items)
Frequently asked questions
Am I legally required to accept returns?
Federal law doesn't require retailers to accept returns except under the Cooling-Off Rule (off-premises sales). However, many states require you to clearly post your policy, and some (like California) presume a 30-day full-refund policy if you don't post one. Check your state's requirements.
Can I charge a restocking fee?
Yes, but many states require the restocking fee to be clearly disclosed before purchase. The fee must be reasonable and conspicuously posted. Some states cap restocking fees or prohibit them for defective merchandise.
What if a customer demands a cash refund for a credit card purchase?
You are generally entitled to refund via the original payment method. Most state laws do not require cash refunds for credit card purchases. Your posted policy should specify the refund method.
Document details
- Legal basis
- FTC Cooling-Off Rule (16 CFR Part 429); FTC Act §5 (unfair or deceptive practices); state consumer protection statutes
- Enforced by
- Federal Trade Commission (FTC); state consumer protection agencies
- Penalty for absence
- FTC enforcement for deceptive practices: up to $50,120 per violation. Many states (e.g., California) presume a full-refund policy if none is posted. Consumer complaints to state AG offices can trigger investigations. Chargebacks from card processors for disputed transactions.
- Category
- Operations
Document preview
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Return & Refund Policy
Legal Reference
FTC Cooling-Off Rule (16 CFR Part 429); FTC Act §5 (unfair or deceptive practices); state consumer protection statutes. Enforced by Federal Trade Commission (FTC); state consumer protection agencies.
1. Return window and conditions (with/without receipt)
2. FTC Cooling-Off Rule compliance (where applicable)
3. Refund method (original payment, store credit, exchange)
4. Restocking fee disclosure requirements
+ 4 more sections...
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