How to Create a Returns Policy

30-60 minEasy

Create a returns policy by setting out your statutory obligations under the Consumer Rights Act 2015 and Consumer Contracts Regulations 2013, your voluntary returns terms, the process for returning items, and how refunds are handled.

Last updated: February 2025

Step-by-Step Guide

1

Understand your statutory obligations

Consumers have a 14-day cooling-off period for distance sales, and 30 days to reject faulty goods under the Consumer Rights Act 2015.

Tips
  • •You cannot reduce statutory rights even if your policy says otherwise.
2

Decide on voluntary returns terms

Many retailers offer extended returns periods (e.g. 30 or 60 days) beyond the statutory minimum as a goodwill gesture.

Tips
  • •Generous returns policies can increase conversion rates.
3

Draft the returns process

Explain how customers initiate a return, who pays return postage, the condition items must be in, and the timeframe for refunds.

Tips
  • •Provide a returns form or online portal link.
4

Publish and communicate the policy

Display the policy prominently on your website, include it in order confirmations, and train customer service staff on the process.

Tips
  • •Include the policy in the delivery package as well.

Legal Requirements

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give consumers 14 days to cancel distance or off-premises contracts. The Consumer Rights Act 2015 provides a 30-day short-term right to reject faulty goods. You must refund within 14 days of receiving the returned goods.

Common Mistakes

Stating 'no refunds' which is illegal for consumer sales
Not informing customers of their cancellation rights, which extends the cooling-off period to 12 months
Refusing refunds on faulty goods within the 30-day rejection period

Template / Example

Returns Policy: You have 14 days from delivery to cancel your order for any reason. Faulty items may be returned within 30 days for a full refund. To return an item, email [email] with your order number. Refunds are processed within 14 days of receiving the returned item.

When to Get a Solicitor

If you sell bespoke, perishable, or digital goods that may be exempt from standard returns rights, or if you sell internationally and need to comply with multiple jurisdictions.

FAQ

Can I offer a no-refunds policy in the UK?

No. Consumers always have statutory rights to refunds for faulty goods or when exercising their cooling-off period for distance sales. You cannot contract out of these rights.

Who pays for return postage?

For cancellation within the cooling-off period, the consumer pays return postage unless you agreed to cover it. For faulty goods, the seller must pay return costs.

Related Guides

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This is guidance, not legal advice. Consult a solicitor for complex matters.

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