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Fair returns and complaints policies
Having fair returns and complaints policies show that you offer great customer service — and help your business handle complaints promptly and fairly.
Following set steps will help save you time, money and stress when handling complaints, because everyone will know what to do. Use our downloadable checklist — and our quiz on returns — to help you.
Useful templates
Use these templates so you, your staff and your customers know how complaints will be handled:
Refund policy sign [PDF, 796 KB]
What fair means
Consumer law says customers can get a replacement, repair or refund for:
- faulty products
- substandard services
- late deliveries
- being overcharged if the price wasn’t set beforehand.
You do not have to give a refund, repair or replace if the customer:
- changes their mind
- breaks it accidentally or on purpose
- doesn’t follow advice, for example washing instructions
- takes it elsewhere to be fixed before coming to you.
If a customer makes a complaint that seems unreasonable — or they don’t give you enough information up front — be polite but assertive. It’s your right to investigate complaints. Find out as much as you can before deciding what — if any — remedy to offer.
If you’re a retailer, it’s a good idea to display a refund sign near the till so customers and staff know which returns you’ll accept and which you’ll refuse.
Obligations under the Consumer Guarantees Act(external link) — Consumer Protection
You can't offer a credit note if a customer returns a faulty product.
You can refuse to give a refund if a customer has changed their mind.
Do you know when to give a customer a refund, repair or replacement? Take this quiz to find out. When you're done, follow the links in the answers for more details.
Effective returns policies
A returns policy — or complaint policy — outlines when your business will offer a return, refund or replacement, and when it has the right to refuse. You can either:
- do what’s required under the Consumer Guarantees Act and other consumer laws
- do more than the legal minimum.
What “more than the legal minimum” means is up to you and the type of industry you’re in. What you can’t do is offer less than what’s legally required. Here are some examples:
| Business type | Legal minimum | More than the minimum |
|---|---|---|
| Clothing retailer | Accept returns if garment is faulty | Also accept returns if customer changes their mind |
| Cafe | Give replacement coffee if waiter spills it or it takes too long to arrive | Also give replacement coffee if customer accidentally drops it |
| Mechanic or bike repairer | Free repairs for faulty parts | Also offer higher-quality replacement parts at no extra cost |
| Plumber | Aim to complete jobs on time | Also offer a discount if it's not completed within a given timeframe |
Putting your policy in writing — even a one-pager with key points — means you and any staff know what to do about different types of complaint. It’s a good idea to include:
- how customers can make a complaint
- how to return faulty products, and any costs involved
- if you offer the legal minimum or more generous terms — give details, for example returns for change of mind, longer timeframes.
Plain language is a must. Avoid complex technical or legal jargon. Make sure everyone understands the terms — and rewrite if needed.
If a customer sends back a product for inspection, usually they pay the postage or delivery costs.
If it’s faulty, you repay the postage/delivery costs, then provide a repair, refund or replacement.
Make your policy public
Customers will also want to check your returns policy, so it’s a good idea to share at least the key points.
Think about how you’ll do this. Options include:
- on your website
- by the till
- on receipts
- in sales agreements
- in packages delivered to customers.
This is particularly useful if a customer is asking for more than you are legally required to do to resolve a complaint.
How you handle returns and complaints is part of good customer service.
Effective complaints process
Make it as easy as possible for customers to raise complaints, and for your business to record and resolve problems. It’s a good idea to use the complaints checklist and complaint record form at the top of this page.
Whatever the complaint:
- handle it promptly and politely
- gather as much information as you need to decide on a fair solution
- remember this might mean not giving a refund, repair or replacement.
Dealing with complaints and bad reviews(external link) — Consumer Protection
Here are other ways to show customers you are keen to improve your service and deal with any problems.
- invite customer feedback, for example a suggestion box or survey
- display your returns policy
- ask customers who complained for feedback on how the complaint was handled.
Use this information and complaints data to identify wider issues that need fixing, for example with deliveries or a supplier.
Step-by-step
Handling a complaint
Here are seven steps to work through when dealing with a complaint. These are also in our complaints process checklist for you to download and check off whenever a complaint comes in.
Don't sell extended warranties as a no-hassle solution to any and all future issues.
It’s a lot of paperwork, will probably cost you money in the long run, and customers already have rights to remedies under consumer laws.
