Drafting a Returns Policy (UK)

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Creating an effective returns policy is an essential part of running a successful business in the UK, as it helps to protect the rights of both customers and businesses alike. Without one, customers can be left feeling unsure about their legal rights when it comes to returning goods, creating the potential for disputes and even legal action. Whilst on the other hand, businesses can be left exposed to customers taking advantage by attempting to return goods that are not actually faulty.

Having a returns policy compliant with applicable UK regulations and laws puts both sides at ease - customers knowing their rights are respected and businesses knowing they’re not being taken advantage of - helping to avoid further disputes. Additionally, offering a clear and straightforward returns policy also works towards protecting a business’s reputation; customers are more likely to shop with companies where they know their rights will be respected if something needs sending back. And this isn’t just beneficial from a customer satisfaction perspective - having an up-to-date returns policy can enable businesses to better manage inventory as any unplanned returns can be expensive.

For all these reasons it is important for businesses in the UK to have a clear cut understanding of what their respective regulations mean for them when having a returns policy; that’s where Genie AI comes in! Our team has drawn upon millions of data points teaching our AI what constitutes market standard when it comes those policies so anyone can draft high quality legal documents without having the need for using lawyers or specialist solicitors (not forgetting our community template library too!). You don’t even have sign up or have an account in order take advantage of this service either; we’ve just made available our templates free of charge so everyone has access!

We hope you found this article beneficial but please read on below for step-by-step guidance on how best drafting your own return policy plus information on all accessing our template library today!

Definitions (feel free to skip)

Consumer Contract Regulations 2013: A UK law that outlines customers’ rights to cancel an order within 14 days of receiving a product.

Consumer Rights Act 2015: A UK law that describes customers’ rights to return faulty or unsatisfactory goods and receive a refund.

Refund: The return of money to a customer as a result of a return or cancellation.

Exchange: The replacement of an item with a new item of the same value.

Faulty/Unsatisfactory Product: A product that does not meet the required standards of quality or performance.

General Data Protection Regulation (GDPR): A EU law that sets out rules for how companies must handle personal data.

Dispute Resolution Process: A process for resolving conflicts between customers and businesses.

Appeals Process: A process for customers to appeal against a decision made by a business.

Contents

• Understanding UK laws and regulations related to returns policies
• Setting a timeframe for returns
• Deciding which returns are accepted and which are not
• Specifying the types of refunds available
• Setting restrictions or limits on refunds or returns
• Establishing the process for returning goods
• Outlining the steps customers must take to return items
• Specifying the documentation or information that customers must provide
• Writing a customer-friendly returns policy
• Outlining the process for customers to make a return or refund request
• Specifying the timeframe for processing returns and refunds
• Listing any exceptions to the policy
• Ensuring compliance with GDPR
• Devising a plan for dealing with disputes
• Establishing a dispute resolution process
• Drafting an appeals process
• Making the policy easily accessible to customers
• Publishing the policy on the company website or other appropriate channels
• Including a link to the policy in applicable emails or documents

Get started

Understanding UK laws and regulations related to returns policies

• Research and familiarize yourself with UK laws and regulations related to returns policies
• Review the Consumer Rights Act of 2015
• Read up on the Distance Selling Regulations
• Understand the Unfair Terms in Consumer Contracts Regulations
• Read up on the Consumer Protection (Distance Selling) Regulations

Once you have done the research and gained a good understanding of the UK laws and regulations related to returns policies, you can move on to the next step.

Setting a timeframe for returns

• Determine the length of time customers have to return items.
• Consider the length of time it will take to receive, inspect, and process a return.
• Decide if the time limit applies from the day the customer receives the item, or the day they place the order.
• Research the returns policies of other retailers in the same industry.
• Determine if seasonal or promotional items should have a different time limit.
• Consider if customers will be able to receive a full refund if they return an item within the set timeframe.

You’ll know when you can check this off your list and move on to the next step when you’ve determined the length of time customers have to return items, considered the length of time it will take to receive, inspect, and process a return, decided if the time limit applies from the day the customer receives the item, or the day they place the order, researched the returns policies of other retailers in the same industry, determined if seasonal or promotional items should have a different time limit, and considered if customers will be able to receive a full refund if they return an item within the set timeframe.

Deciding which returns are accepted and which are not

• Consider which items can be returned and which are non-refundable
• Establish which type of returns you will accept (e.g. unused, with tags still attached)
• Identify any product types you’ll reject (e.g. perishable items, personalised items)
• Once you’ve decided on the terms of your returns policy, document them clearly
• Once you have your returns policy clearly documented, you can move on to the next step of specifying the types of refunds available.

Specifying the types of refunds available

• Identify the types of refunds you will offer (e.g. full refund, partial refund, store credit, no refund, etc.)
• Decide on a timeline for each type of refund (e.g. full refunds must be requested within 14 days of purchase)
• Outline the criteria for each type of refund (e.g. products must be unused to qualify for a full refund)
• Create a list of products or services that are excluded from refunds or returns
• Make sure that all types of refunds are compliant with UK consumer law

You can check this step off your list when you have identified the types of refunds you will offer and decided on a timeline for each type of refund, outlined the criteria for each type of refund, created a list of products or services that are excluded from refunds or returns, and made sure that all types of refunds are compliant with UK consumer law.

Setting restrictions or limits on refunds or returns

• Consider if you will place any restrictions or limits on the type of refund or return available
• Will you offer a full or partial refund?
• Decide on a reasonable time frame for returns to be made
• If you will place a limit on the number of returns a customer can make
• Consider whether you will accept returns on opened products
• Decide if you will accept returns on items that have been used
• Set any other restrictions or limits on returns or refunds that you deem necessary

You’ll know you can move on to the next step when you have decided on the restrictions and limits you will place on any refunds or returns.

Establishing the process for returning goods

• Determine the most efficient and cost-effective way to process returns
• Identify a returns address and any other details customers must include when returning goods
• Decide how long customers have to return items
• Outline any other conditions that must be met when returning items, such as their condition, packaging, etc.
• When you’ve established these criteria, you can check this step off your list and move on to outlining the steps customers must take to return items.

Outlining the steps customers must take to return items

• Customers must contact the retailer beforehand to inform them of the return
• Customers should package the item securely and include proof of purchase
• Customers should arrange for the item to be returned via an insured and trackable method
• Customers must provide their name, address and order number when returning goods
• Customers should retain proof of posting

How you’ll know when you can check this off your list and move on to the next step:

• When customers have followed all the steps outlined, they have completed this step in the guide. They can move on to the next step, which is specifying the documentation or information that customers must provide.

Specifying the documentation or information that customers must provide

• Specify what documentation or information customers need to provide to return items, such as order numbers, proof of purchase, and contact information
• Make sure customers understand that they must provide this information before they can submit a return
• Make a note of what you need to check in order to accept returns (eg. whether items are still in their original packaging, if they are unused and in new condition, etc.)
• You can check this step off your list when you have specified the documentation and information that customers must provide in order to return items.

Writing a customer-friendly returns policy

• Create an easy-to-read returns policy that is written in plain language and outlines the rights of customers
• Set out the types of products that can and cannot be returned, for example, personalised items or perishables
• State the time limit customers have to make a returns or refund request
• Include any conditions customers must meet in order to be eligible for a return, such as the product must be unused and in its original packaging
• Explain what customers need to do if they wish to return an item, for example, contact customer service
• Make sure your policy is compliant with the Consumer Rights Act 2015

You can check this off your list when you have written an easy-to-read returns policy in plain language that outlines the rights of customers, sets out the types of products that can and cannot be returned, states the time limit customers have to make a returns or refund request, includes any conditions customers must meet in order to be eligible for a return, explains what customers need to do if they wish to return an item, and is compliant with the Consumer Rights Act 2015.

Outlining the process for customers to make a return or refund request

• Clearly explain the process customers need to follow to make a return or refund request, such as contacting customer service and providing their order number
• Specify how customers can contact customer service, such as via email, phone, or an online form
• Outline the information customers will need to provide when making a return or refund request
• Provide a clear description of the steps customers need to take to complete the return or refund request
• Once you have clearly outlined the customer returns process, you can check this off your list and move on to the next step.

Specifying the timeframe for processing returns and refunds

• Set a timeframe for processing returns and refunds. This should be reasonable and provide customers with enough time to make a return or refund request.
• Specify how long it will take for customers to receive a refund after returning their product.
• Include any delays customers may experience due to factors outside of your control, such as delivery delays.
• Make sure to include this information in the returns policy.

You can check this off your list and move on to the next step once the timeframe for processing returns and refunds has been specified, and the information has been included in the returns policy.

Listing any exceptions to the policy

• Identify any exceptions to the policy, such as items which cannot be returned or refunded
• Take into account applicable consumer law, such as the Consumer Rights Act 2015
• List any exceptions clearly and prominently in the returns policy
• Once you have listed all applicable exceptions, you can check this off your list and move on to the next step

Ensuring compliance with GDPR

• Review and update your data privacy policy to ensure compliance with the General Data Protection Regulation (GDPR).
• Ensure that your returns policy includes information on how customers can opt-out of receiving marketing emails and how their data will be stored.
• Include a statement on how customers can request to view and/or delete their personal data.
• Publish an updated privacy policy on your website.

Check off this step when you have reviewed, updated and published an updated privacy policy on your website.

Devising a plan for dealing with disputes

• Research existing laws and regulations related to returns in the UK
• Draft a policy outlining the process for dealing with disputes, including:
• Provisions for customers who wish to return a product
• A timeline for resolving disputes
• Options for compensating customers
• Consult a legal expert to review and approve the policy

Once you have completed the research, drafted the policy and consulted an expert, you can check this off your list and move on to the next step.

Establishing a dispute resolution process

• Determine the most appropriate dispute resolution process for your returns policy, including whether it will be handled internally or externally
• Consider various methods, such as arbitration, mediation, or expert determination
• Outline the process, including the steps involved, the parties responsible for taking action, and the timeline
• Document the dispute resolution process in your returns policy
• Arrange for the necessary resources, such as an independent mediator, to handle disputes

You can check this off your list when you have established the dispute resolution process and documented it in your returns policy.

Drafting an appeals process

• Decide on an appeals process that works best for your company, such as an internal review, or an external dispute resolution process
• Decide on the timeline for when customers can submit an appeal and how long you have to respond
• Create a form or a process customers can use to submit their appeal
• Decide if customers will be able to submit evidence or documentation to support their appeal
• Outline the process for how you will respond to appeals, such as sending out a notification of the outcome
• Create a document that outlines your appeals process, including the timeline, form, and evidence requirements
• When you have all the necessary components in place, you can check this off your list and move on to the next step.

Making the policy easily accessible to customers

• Place the returns policy on the company website, in a prominent place, such as the footer, so that customers can easily find it.
• Include a link to the policy on any product pages, purchase confirmation emails and other customer-facing documents for easy access.
• Consider including a link to the policy in the customer account section of the website.
• When this is complete, customers should be able to easily find the policy on the company website.

Publishing the policy on the company website or other appropriate channels

• Publish the returns policy on the company website, and other channels such as social media, customer service desk, product pages, etc.
• Make sure the policy is clearly visible and easy to find.
• Check that the policy is formatted correctly and displays well across different devices.
• Test the link to the policy to make sure it works correctly.
• When you’re finished, check off this step and move on to the next step.

Including a link to the policy in applicable emails or documents

• Include a link to the returns policy in emails sent to customers
• Include a link to the returns policy in any documents sent to customers
• Check the links are working by clicking on them and testing that they go to the correct page
• Check off this step when you are sure all links to the policy in emails and documents are correct and working
• Move on to the next step when this one is complete

FAQ:

Q: What is the difference between a UK returns policy and a US returns policy?

Asked by Kelsey on April 8th 2022.
A: The primary difference between a UK returns policy and a US returns policy is the governing body responsible for enforcing the law. In the UK, the Consumer Rights Act 2015 sets out the parameters by which retailers must abide when dealing with consumer complaints and returning of goods. This act only applies to retail transactions within the UK, so businesses selling outside of the UK should be aware that different laws may apply. In the US, the Federal Trade Commission (FTC) has established guidelines regarding consumer protection and returning of goods, but each state has its own specific laws that must be adhered to as well. As such, businesses selling in the US should familiarize themselves with the laws of each state in which they operate in order to ensure compliance with all applicable regulations.

Q: How can I make sure my returns policy complies with EU Regulations?

Asked by Carson on October 3rd 2022.
A: To ensure compliance with EU Regulations, it is important to be aware of and abide by any applicable consumer protection laws in each country or region within the European Union. The EU Directive on Unfair Commercial Practices provides a broad framework of consumer protection measures which all member states must adhere to. Additionally, each country within the EU may also have its own specific laws or other regulations that apply to consumer protection and returning of goods. Therefore, businesses should familiarize themselves with the legislation of each country within which they operate in order to ensure compliance with all applicable regulations.

Q: What are some key elements I should consider when drafting my returns policy?

Asked by Brooke on June 18th 2022.
A: When drafting your returns policy, there are several key elements you should consider in order to ensure you are providing adequate protection for your customers while still protecting your business interests. These elements include: specifying what items are eligible for return; outlining accepted payment methods; setting out any rules or conditions associated with returns; clearly stating any restocking fees or other charges; and specifying any time limits or other restrictions that may apply. Additionally, it is important to ensure that your policy complies with all applicable laws and regulations in order to avoid any potential legal issues down the line.

Q: How can I ensure my returns policy is fair and reasonable?

Asked by Eric on December 15th 2022.
A: To ensure your returns policy is fair and reasonable, it is important to consider both your customers’ rights under applicable laws as well as your own interests as a business. Your policy should allow customers to return items for a reasonable period of time, provide clear information about accepted payment methods and rules or conditions associated with returns, and outline any restocking fees or other charges that may apply. Additionally, you may wish to consider offering a satisfaction guarantee or other incentives in order to encourage customer loyalty and trust.

Q: What kinds of items can I exclude from my returns policy?

Asked by Jenna on August 11th 2022.
A: Generally speaking, you can exclude any items that are deemed non-returnable or non-refundable under applicable laws or regulations. Additionally, you may wish to exclude items that are perishable or have been personalized or custom-made for a particular customer from your returns policy if they cannot be resold to another customer without compromising their quality or integrity. You should also consider excluding items that have been sold ‘as-is’ from your policy if they cannot be returned for reasons outside of your control such as damage during transit or manufacturing defects.

Q: Are there any specific areas I should consider when drafting a UK-specific Returns Policy?

Asked by Samantha on March 29th 2022.
A: When drafting a UK-specific Returns Policy, one should be aware of and adhere to relevant laws such as The Consumer Rights Act 2015 which sets out specific requirements for retailers when dealing with customer complaints and returning of goods. Additionally, one should also consider other factors such as delivery methods offered (e.g., same-day delivery), accepted payment methods (e.g., credit card), rules surrounding international orders (e.g., duty fees), time limits or restrictions on returns (e.g., 14 days after receipt), restocking fees or other charges that may apply (e.g., return postage costs), and any special considerations for certain types of items (e.g., perishable goods).

Q: Are there any additional requirements I need to take into account when selling online?

Asked by Noah on January 1st 2022.
A: When selling online, there are several additional requirements you need to take into consideration when drafting your Returns Policy such as making sure customers have easy access to view your Returns Policy before making their purchase decision; providing an easy way for customers to contact you regarding their order; informing customers of their right to cancel an order within 14 days after receipt; and specifying whether you offer free return shipping or not (if applicable). Additionally, you should also make sure that any third-party payment processors you use are compliant with all applicable regulations relating to online payments in order to protect both yourself and your customers from fraudulent activity or data breaches.

Q: How do I protect myself against fraudulent claims when allowing customers to return items?

Asked by Ryan on November 22nd 2022.
A: To protect yourself against fraudulent claims when allowing customers to return items, it is important to have clear guidelines outlining what constitutes a valid return such as specifying acceptable proof of purchase (e.g., original receipt) as well as any additional documents required depending on the item type (e.g., warranty certificates). Additionally, it is important to create a system for tracking returned items such as assigning unique serial numbers so that they can be easily identified within your records if necessary down the line. Finally, it is also wise to limit refund amounts where possible in order to minimize losses due to fraudulent activity (e.g., only refunding 80% of original purchase price).

Q: Do I need different policies for different payment methods?

Asked by Emma on July 4th 2022.
A: Depending on the type of payment method used by customers when placing an order, different policies may need to be put in place in order to protect both yourself and your customers from potential fraudulent activity or data breaches associated with online payments . For example, if you accept credit cards then you will need additional safeguards such as using secure servers with encryption technology in order to process transactions securely; if you accept PayPal payments then you will need additional measures such as verifying customer identity before processing payments; if you accept cash then you will need additional safeguards such as recording customer details accurately at point of sale; etc… It is also important for businesses operating online outside their home country/region (such as companies selling into Europe)to be aware of any applicable cross-border legislation which may require additional measures depending on the payment method used (such as refunding VAT/GST/other taxes upon request).

Q: Do I need special considerations if I’m selling products internationally?

Asked by Michael on August 29th 2022.
A: It is important for businesses selling products internationally to familiarize themselves with all applicable laws relating not only to consumer protection but also international trade regulations such as customs procedures and taxes/duties imposed on imports/exports between countries/regions in order to avoid potential delays/costs down the line due non-compliance with these regulations . Additionally, businesses should also consider offering international shipping insurance where appropriate in order to protect against potential losses due damage/loss during transit etc… Finally, businesses should also be aware that different countries/regions may have different rules regarding returning of goods which must be taken into account when crafting their Returns Policy .

Example dispute

Lawsuits Referencing Returns Policies

• The plaintiff may raise a lawsuit which references a returns policy if the retailer has failed to honor the terms of their policy.
• The plaintiff must prove that the retailer was aware of the policy and failed to uphold their obligations.
• Civil law may be referenced in the suit, such as the Consumer Protection Act, which states that retailers must honor any returns policies they have published.
• The plaintiff must also prove that they were adversely affected by the retailer’s failure to honor the policy.
• If the plaintiff can prove their case, the retailer may be required to provide a refund or other compensation.
• The court may also order the retailer to abide by the returns policy and to pay damages for any losses suffered by the plaintiff.

Templates available (free to use)

Returns Policy

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