Legal Matters: Beneath Those Refund and Return Policies

Many states have disclosure laws that apply to all retailers. Massachusetts requires return or refund policies be “clearly and conspicuously disclose[d]” prior to a sales transaction, for example. This law applies equally to shops on Beacon Hill and catalogs mailed to Boston customers.

Most state laws regarding refund/return policies, however, were drafted at a time when retail sales were assumed to occur over the counter in a conventional store. These laws typically grant retailers considerable discretion in determining their product return policies, requiring only that once the policy is established, it be clearly disclosed to consumers, usually through some form of point-of-sale posting.