Online retailers’ ‘illegal’ returns policy

Shoppers are at risk from online retailers with returns policies that flout consumer law, according to an investigation by Which?

The consumer group found scores of online retailers with returns policies in breach of consumer law offering buy now, pay later (BNPL) and other payment options, putting shoppers at risk of losing their money if they want to send back unwanted or faulty goods.

It found more than 170 online retailers, listed on Klarna, Clearpay or Laybuy’s apps or websites, that were displaying incorrect returns or faulty goods policies.

Retailers also offered other payment methods at the checkout, such as Paypal, Apple Pay, Google Pay and Amazon Pay, as well as letting customers pay directly with debit or credit cards, Which? said.

It said while BNPL services offer speed and convenience at checkouts, they, like debit cards, do not give consumers the same protections as those using their credit card.

Which? said many retailers it looked at refused refunds on fullpriced, non-faulty or sale items, offering store credit or exchanges instead.

Some of the retailers gave shoppers 14 days or fewer to send back an unwanted item, while others charged “restocking” or “administration” fees for returns, which could be as high as 20% of the price.

The consumer group said this is contrary to the Consumer Contracts Regulations, which gives consumers the right to cancel orders for most goods bought online within 14 days of receiving the item.

These rules apply to items bought in a sale or on discount too, and shoppers should not be charged to make a return.