Restocking Fees for Ecommerce Sales

[Bigbird82]

Hello,
Can anyone direct me to the current legislation on whether an online retailer can charge a restocking fee for ecommerce returns for either B2B or B2C sales? I believe the previosu Distance Selling legislation ended with Brexit. If the retailer can charge a restocking fee, what are the requirements around stating this on the website and providing details of any restocking charges?
Thanks in advance.
Al

 

[fisicx]

There is no legislation that covers this. If they want to charge a restocking fee they can. All you can do is dispute the charge.

What did you buy and why are you returning it?

 

[Bigbird82]

Hi Fisicx, thanks for the reply. I'm working with an online retailer who is debating charging it but i want to find out what the law is in terms of what is / is not possible / legal. From a customer experience perspective i think it's poor but they're keen to have the option to charge a fee.

 

[MBE2017]

B2B is commercial terms, they can do what they wish.

B2C is very different. https://www.gov.uk/online-and-distance-selling-for-businesses. For details.

 

[AlanJ1]

Hi Fisicx, thanks for the reply. I'm working with an online retailer who is debating charging it but i want to find out what the law is in terms of what is / is not possible / legal. From a customer experience perspective i think it's poor but they're keen to have the option to charge a fee.

Don't do it (is what I would say to them).

There are enough studies out there that have been done on losing a customer versus gaining the LTV of the customer before you even talk about negative social media reviews / trust pilot etc.

 

[kulture]

I thought that the consumer protection act 2000 still applies. Am I wrong?

 

[Bigbird82]

Don't do it (is what I would say to them).

There are enough studies out there that have been done on losing a customer versus gaining the LTV of the customer before you even talk about negative social media reviews / trust pilot etc.

I 100% agree Alan. It's quite an old-school industry that's been very much B2B focussed to date so a bit of education required.

 

[japancool]

Until they're changed, the Consumer Contracts Regulations still applies.

The relevant bit is here:

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

These Regulations implement most provisions of Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive...

www.legislation.gov.uk

"(9) If (in the case of a sales contract) the value of the goods is diminished by any amount as a result of handling of the goods by the consumer beyond what is necessary to establish the nature, characteristics and functioning of the goods, the trader may recover that amount from the consumer, up to the contract price.

(10) An amount that may be recovered under paragraph (9)—

(a)may be deducted from the amount to be reimbursed under paragraph (1);

(b)otherwise, must be paid by the consumer to the trader.

(11) Paragraph (9) does not apply if the trader has failed to provide the consumer with the information on the right to cancel required by paragraph (l) of Schedule 2, in accordance with Part 2.

(12) For the purposes of paragraph (9) handling is beyond what is necessary to establish the nature, characteristics and functioning of the goods if, in particular, it goes beyond the sort of handling that might reasonably be allowed in a shop."

You CAN charge a fee for loss of value IF the goods have been excessively handled. Otherwise, no.

B2B is different, you can do whatever your contract says.

 

[Gyumri]

There is no legislation that covers this. If they want to charge a restocking fee they can.

(8) The trader must not impose any fee on the consumer in respect of the reimbursement.

 

[japancool]

(8) The trader must not impose any fee on the consumer in respect of the reimbursement.

That refers to the actual reimbursement itself, in other words, you cannot charge specifically for the return of the money, such as charging a processing fee.

 

[Gyumri]

Try Clause 7 here which answers the OP's question about a restocking charge:

(7) The consumer is not required to bear any other cost of returning goods under paragraph (2).

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

These Regulations implement most provisions of Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive...

www.legislation.gov.uk

 

[fisicx]

Try Clause 7 here which answers the OP's question about a restocking charge:

(7) The consumer is not required to bear any other cost of returning goods under paragraph (2).

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

These Regulations implement most provisions of Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive...

www.legislation.gov.uk

This isn’t about the cost of returning goods. The question is about a restocking fee. What constitutes excessive handling can be contested and is why T&C usually require the product to be returned unopened and in damaged.

 

[kulture]

Try Clause 7 here which answers the OP's question about a restocking charge:

(7) The consumer is not required to bear any other cost of returning goods under paragraph (2).

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

These Regulations implement most provisions of Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive...

www.legislation.gov.uk

Whilst you are correct to say that in most circumstances there must not be a restocking charge, it really is better to quote the correct part of the regulations.

So regulation 34 details what should be refunded. https://www.legislation.gov.uk/uksi/2013/3134/regulation/34/made

It starts out saying that everything should be refunded (para 1) except as detailed in the subsequent paragraphs. No-where does it allow a generic re-stocking fee. It does allow an adjustment if the goods have been damaged by over handling them as also highlighted above by @japancool . There is no point in highlighting misleading other parts of the regulations .

 

[Paul Kelly ICHYB]

believe the previosu Distance Selling legislation ended with Brexit.

I don't think it was!

Were their restocking fees clear in their t&c's?

How soon after receiving the goods do you want to return them?

Have you opened the package or used the item?