Restocking fee

Discussion in 'Ecommerce Forum' started by Christiane, Dec 23, 2007.

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  1. Christiane

    Christiane UKBF Ace Free Member

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    I've just tried to double check whether it is legal to charge a restocking fee for returned goods. Many companies do it but I couldn't find anything in black and white on the DSR document, unless I missed it.

    Thanks
     
    Posted: Dec 23, 2007 By: Christiane Member since: Dec 3, 2006
    #1
  2. IP2

    IP2 Banned

    291 44
    I believe, and I may be totally wrong on this, you are allowed to charge a restocking fee, providing it is a/. Clearly stated in your terms and conditions and b/. the customer is being allowed to return something outside of their statutory rights.

    Sorry to be vague, but that is my understanding from as you point out something that is not well documented. However, if you are serving B2B the customer has no right of return (unless faulty) and you are perfectly within your rights to charge a restocking fee (providing again it is in your T&C) or to refuse return.
     
    Posted: Dec 23, 2007 By: IP2 Member since: Dec 7, 2007
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  3. stugster

    stugster UKBF Legend Full Member

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    Distance Selling prevents any fees being charged. The person returning goods within the time period is also eligible to a refund on the postage costs too. I don't know about outwith the cooling off period though.
     
    Posted: Dec 23, 2007 By: stugster Member since: Feb 1, 2007
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  4. Fuzzy

    Fuzzy UKBF Legend Free Member

    5,365 506
    I once got charged a re-stocking fee on an item - I wasnt happy as even though they had stated it was in their T&C's I still felt cheated. Who reads the small print?! It put me off so much I vowed I would never shop with them again. Just my thoughts on it.:)
     
    Posted: Dec 23, 2007 By: Fuzzy Member since: Oct 20, 2007
    #4
  5. IP2

    IP2 Banned

    291 44
    Wasn't Outwith a character in the early Harry Potter films?

    I am assuming we are talking law and not science fiction? In which case my previous reply outlined Distance Selling Regs, by covering statuary rights!
     
    Posted: Dec 23, 2007 By: IP2 Member since: Dec 7, 2007
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  6. streetslocal

    streetslocal UKBF Newcomer Free Member

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    The regulations give consumers an unconditional right to cancel an order. This is to allow the consumer the opportunity to examine the goods or consider the nature of a service.
    If a consumer cancels an order, written notice must be given to you by:
    • goods – seven working days from the day after that on which the goods are received by the consumer;
    • services – seven working days from the day after that on which the consumer agrees to go ahead with the contract.
    If you fail to provide consumers with written confirmation of all the required information, then the cancellation periods can be extended up to a maximum of three months and seven working days. If the missing information is provided during this time, then the cancellation period ends seven working days beginning with the day after the full written confirmation is received by the consumer.
    Where a contract is cancelled, the consumer must ensure that reasonable care is taken of any goods received and 'restore' them to you. This does not mean that they have to return them - unless you stipulate this in the contract - only that they make them available for you to collect.
    You must refund the consumer's money as soon as possible and, at the latest, within 30 days of receiving the written notice of cancellation. The consumer may, at your discretion, be charged the direct cost of returning the goods, but you must tell them about this in the written information you give them.

    If payment for the goods or services is under a related credit agreement, the consumer's cancellation notice also has the effect of cancelling the credit agreement.
     
    Posted: Dec 23, 2007 By: streetslocal Member since: Nov 27, 2007
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  7. Cornish Steve

    Cornish Steve UKBF Newcomer Full Member

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    I bought some family Christmas presents yesterday and was surprised to see notices all over about a 15% restocking fee. This was from a brick-and-mortar store, not from an online store. Another trend seems to be offering damage insurance (to replace what used to be service agreements): Pay an extra 20% and we'll insure you against all damage for one year. (What a rip-off, but I'm sure many people buy it.)
     
    Posted: Dec 23, 2007 By: Cornish Steve Member since: Jul 4, 2005
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  8. Steve2507

    Steve2507 UKBF Newcomer Free Member

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    Simple answer is you can't charge a restocking fee.

    If you have been charged this (even if it is in the t&c's) contact your credit card provider and explain that you haven't received the funds back. They will then set up a chargeback.
     
    Posted: Dec 24, 2007 By: Steve2507 Member since: Jun 9, 2006
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  9. gibby

    gibby UKBF Ace Free Member

    1,245 119
    I think restocking fess are there to put off customers from returning goods although its debatable if they stand up

    it is annoying when customers return goods for silly reasons
    we get stuff back for really stupid reasons & we put it down to awkward customers

    we have found its better to give a refund to keep customers happy and they usually buy again, if we get difficult customers who repeatedly send stuff back we decline orders as it become too much hassle.
    we dont refund delivery costs unless goods are faulty and our legal advisors claim we are right in doing so

    G
     
    Posted: Dec 29, 2007 By: gibby Member since: Sep 11, 2007
    #9
  10. Busy Outdoors.Com

    Busy Outdoors.Com UKBF Newcomer Free Member

    23 0
    If you read the Distance Selling Regulations you have to refund the delivery costs and even if the goods haven't been returned, after 30 days you have to refund the customer and then take action to recover the goods:

    Distance Selling Regs

    It's very heavily weighted towards the consumer.
     
    Posted: Dec 29, 2007 By: Busy Outdoors.Com Member since: Jul 13, 2007
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  11. Blush

    Blush UKBF Newcomer Full Member

    1,135 78
    I wouldn't shop with someone who wanted to charge me restocking fees! Simple as that.I am sure there are lots of shoppers out there who would feel the same too.
     
    Posted: Dec 29, 2007 By: Blush Member since: Mar 22, 2007
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  12. kevin555

    kevin555 UKBF Newcomer Free Member

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    Cancellation periods

    "The consumer may, at your discretion, be charged the direct cost of returning the goods, but you must tell them about this in the written information you give them."

    We refund return postage if there is a problem with the item we have sent out but if the customer simply has changed their mind or doesn't want the item then that is their problem so I believe it is only fair that they pay return postage.

    I know some stores will refund this return postage also - they may already have a system in place for returns that means it works well for them, esp, clothing mail-order etc.

    So, when people say you have to refund postage are we getting mixed up with charging people for the initial cost in dispatching the order?

    What is the position if the goods are not faulty?

    What are the implications when someone orders Special Delivery, i.e. high delivery charge, then returns the non-faulty item?
     
    Posted: Jan 3, 2008 By: kevin555 Member since: Feb 5, 2007
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  13. taggingsupplies

    taggingsupplies UKBF Newcomer Free Member

    252 6
    TRADING STANDARDS told last week: Distant selling regulations you can return an item back within 7 days and they can still charge for sending it to you but only the true cost of postage so lets say they charge you £30 and we know it cost £10 then you have a case. They have to refund if your not happy with it under the distant selling law.
     
    Posted: Jan 3, 2008 By: taggingsupplies Member since: Dec 15, 2007
    #13
  14. Steve2507

    Steve2507 UKBF Newcomer Free Member

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    Remember though that some items are not covered by the DSR and so you do not have to accept returns.
     
    Posted: Jan 3, 2008 By: Steve2507 Member since: Jun 9, 2006
    #14
  15. streetslocal

    streetslocal UKBF Newcomer Free Member

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    As stated on the OFT website:
    • financial services
    • sale of land or buildings
    • purchases from a vending machine or automated commercial premises
    • the use of a public pay phone
    • auctions, including internet auctions
    • rental agreements that have to be in writing (i.e. a lease for three years or more)
    Also the right to cancel does not apply to the following, unless you agree otherwise:
    • personalised goods or goods made to a consumer's specification
    • goods that cannot, by their nature, be returned
    • perishable goods (eg flowers, fresh food)
    • un-sealed audio or video recordings or computer software
    • newspapers, periodicals or magazines
    • betting, gaming or lottery services
    • services that begin, by agreement, before the end of the cancellation period providing the supplier has informed the consumer before the conclusion of the contract, in writing or another durable medium, that he will not be able to cancel once performance of the services has begun with his agreement
    • goods or services, the price of which is dependent on fluctuations in the financial market.
    But in regards to postage costs this is correct you can only keep what is the actual cost.
    Otherwise we would all be chargingf 1 pence for goods and 99.99 for postage.
     
    Posted: Jan 3, 2008 By: streetslocal Member since: Nov 27, 2007
    #15
  16. Steve2507

    Steve2507 UKBF Newcomer Free Member

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    Nice one, I was looking for that but couldn't find it.
     
    Posted: Jan 3, 2008 By: Steve2507 Member since: Jun 9, 2006
    #16
  17. taggingsupplies

    taggingsupplies UKBF Newcomer Free Member

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    Yes Steve some of your goods couldnt be returned, he he

    I seen a guy on ebay selling a used sex kit...
     
    Posted: Jan 3, 2008 By: taggingsupplies Member since: Dec 15, 2007
    #17
  18. Steve2507

    Steve2507 UKBF Newcomer Free Member

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    The worrying thing is I bet he sold it.:eek:
     
    Posted: Jan 3, 2008 By: Steve2507 Member since: Jun 9, 2006
    #18
  19. cjd

    cjd UKBF Legend Full Member - Verified Business

    15,438 3,067
    The main exception is that the DSR apply to CONSUMERS.

    Business sales are covered only by the T&Cs of the deal and the T&Cs can iclude a restocking fee.
     
    Posted: Jan 3, 2008 By: cjd Member since: Nov 23, 2005
    #19
  20. streetslocal

    streetslocal UKBF Newcomer Free Member

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    Also all goods sold on ebay are not covered by DSR if so by auction.
     
    Posted: Jan 3, 2008 By: streetslocal Member since: Nov 27, 2007
    #20
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