Return Postage Laws

[sosnazzy]

If you offer free postage along side other postage options, and the buyer chooses an option that is not free, do you have to refund the postage by law

For example there is an item for £2.99 on a website with free delivery. At checkout I decide to upgrade to the express service which costs an additional £9.99.

If I get the item within the specified time and simply do not want it and wish to return would I be entitled to a full refund of £2.99 including my express delivery charge of £9.99, even though there was a free post option? (It is my responsibility to pay to return the item.)

 

[Raw Rob]

My understanding is that under the current regulations you would only get the £2.99 product cost refunded.

 

[ecoleman]

You do not need to refund the postage cost in this instance. This is classed as a service that has already been delivered.
This was the case in the old DSR as well, although it wasn't made as clear as it is in the new regs.

 

[sosnazzy]

Hello Raw Rob and ecoleman,

Thank you for your replies. That helps back up what I've read since in the OFT's "A guide for businesses on distance selling" booklet.

On paragraph 3.49 it states,
If you provided additional services such as gift wrapping or express
delivery that a consumer specifically requested, then you may
withhold the additional charges incurred by the consumer for these
services only if:

• the additional services were provided under a separate contract
• you had the consumer’s agreement to start the additional services
  before the end of the cancellation period, and
• you provided the consumer with the required written information
  before you started the additional services, including information
  that the cancellation rights would end as soon as you started to
  carry out the additional services.

It is the bullet point above in blue that we were slightly concerned with. As the bulk of our orders are from eBay the customer has to select a delivery service before making any payment. Would this still be classed as choosing an Express delivery 'under a separate contract', as it's an additional cost to that advertised for the product?

 

[8420PR]

You only need to refund the standard postage, but this should be made clear to the customer before they order. Below is what the Government says:

Link:
http://dshub.tradingstandards.gov.uk/dsrexplained

You have to refund any money paid in relation to the contract by, or on behalf, of the customer, to the person who made the payment. This includes the

• full price of the goods
• deposit or prepayment made
• cost of delivery.

Standard delivery costs must be refunded, but the costs of additional services that a customer specifically requested, such as gift wrapping or express delivery, may be withheld if

• the additional services were provided under a separate contract
• you had the customer’s agreement to start the additional services before the end of the cancellation period
• you provided the customer with the required written information before you started the additional services, including information that the cancellation rights would end as soon as you started to carry out the additional services.

Refunding the costs of return depend on what a customer has been told and agreed to at the time of sale. The customer can be made to bear these costs if this is included in your contract terms and forms part of the information required to be given to customers (see Information you are required to provide to customers).

Remember, you are liable for a product until it is delivered to the customer and your insurance will need to cover this. On cancellation, if your customer can prove they returned an item in an appropriate way, they will not have to bear the cost of any loss or damage to the goods in transit.

 

[ecoleman]

I don't think you need to worry about that.
This is an extract from the template terms and conditions that were provided when the new regs went live.

You will probably need to ensure that this is in your terms and conditions. If not you may be liable as you have not made the customer aware and thus the customer may not have agreed.

"If you cancel this contract, we will reimburse you all payments received from you, including the costs of delivery (except for the supplementary cost arising if you chose a type of delivery other than the least expensive type of standard delivery offered by us)."

 

[sosnazzy]

Thank you all so much, you've been very helpful.

 

[senses]

Nothing to worry about mate.