Am I legally obliged to refund the original shipping on an EU online order if it is refused?

[Dave_Wilson]

Can anyone confirm what the legal position is on this matter please?

A customer in Ireland bought from our website in the UK. We shipped it and it arrived without issue, but she rejected it and returned the order because she changed her mind. We have refunded the items but not the shipping as there was no fault and it is an international order.

She is claiming that we have a legal obligation to refund her, or she will go through PayPal to get the money back. It seems crazy that we would have to refund international shipping if a customer simply changes their mind.

Any guidance would be much appreciated. Does it make a difference that she is in the EU? Especially post-Brexit?

Thank you,
Dave

 

[nick34785]

This has always been the case when in the EU, I'm not sure legally how it is now. But anyway Paypal will refund her as the item was returned (she will win a dispute). So you can provide good customer service and do that right away and avoid an angry customer.

 

[DontAsk]

Pre-brexit it would depend if your Ts and Cs are clear that shipping will not be refunded in the event of a "changed my mind" return. The default is you refund.

Not sure about post-brexit, but I would amend your Ts and Cs immediately, if necessary,

 

[paulears]

How does EU law relate to UK law? She returned it because she didn't like it, from a foreign country with expensive transport costs, you lose one way, she loses the other surely? Do distance selling rules apply outside of the home country.

 

[japancool]

Doesn't matter. Paypal will side with her.

 

[paulears]

I've found that they do not automatically find against you if you put the case. I've probably won more than lost.

 

[lesliedocherty]

We have won the last four where customers in Europe refused it due to customs charges, 2 times where with eBay and they sided with us, and 4 Paypal agreed in our favour.

Funnily, credit card customers never dispute it.

 

[nick34785]

We have won the last four where customers in Europe refused it due to customs charges, 2 times where with eBay and they sided with us, and 4 Paypal agreed in our favour.

Funnily, credit card customers never dispute it.

The customer didn't pick it up, and you got it returned, and PayPal let you keep the money? Just for the shipping cost, or the whole amount?

 

[lesliedocherty]

Just for shipping cost, we refunded the rest

 

[Deleted member 335660]

How does EU law relate to UK law? She returned it because she didn't like it, from a foreign country with expensive transport costs, you lose one way, she loses the other surely? Do distance selling rules apply outside of the home country.

As I understand it, a lot of EU laws are still inherent in UK as the Government have not changed them yet. Not sure that applies here.

Certainly @DontAsk reply has made me check our T&C’s.

 

[japancool]

The Consumer Contracts Regulations are still part of UK law, and the regulations say nothing about the customer having to be in the UK.

In addition, by selling into the EU, you are also binding yourself into the EU regulations for that sale.

You would normally refund for the original shipping cost, but not the return cost (which the customer must bear, assuming your T&Cs say that!).

 

[Adam Le Grand]

A lot of our customers refund the entire cost of the original order, including delivery but they state that the recipient has to cover the cost of the return. This is to try and sway people from just "changing their minds". Unfortunately companies like ASOS have breed a culture of just returning items without much thought as they offer freepost returns.

At the end of the day, you do not want negative reviews so I would be included to say cover all costs in this instance but have a really good look at your t&cs going forward and make at decision on what your stand point is going to be on the matter. As long as your t&cs cover you then there is no argument.

 

[DontAsk]

Even large companies get it wrong. Some years ago I had to put SportsDirect right on their returns policy when they tried to charge me for a return.

 

[Dave_Wilson]

Thank you everyone for your input. It sounds like we should be refunding the original shipping cost then, even though it seems unfair for a business to be out of pocket if someone changes their mind when international shipping is so expensive. I'll double check our T&Cs.

 

[Adam Le Grand]

Thank you everyone for your input. It sounds like we should be refunding the original shipping cost then, even though it seems unfair for a business to be out of pocket if someone changes their mind when international shipping is so expensive. I'll double check our T&Cs.

Good luck. I hope you find a decent solution for this kind of issue going forward.

 

[lesliedocherty]

One way to get around it is to have a very basic shipping option, and a slightly more expensive option with added value like tracking etc.

Customers who upgrade their shipping option (even if the upgrade is only 50p) are not entitled to a refund of their shipping costs.