Consumers frequently misunderstand their rights when it comes to returning purchased merchandise for a refund or exchange. Some think they have a right guaranteed by law to return a product almost anytime they have made a purchase. That is false. Others think they have three days to cancel any contract or return any product for a refund. That is also false.
Many merchants have generous refund and exchange policies, but such policies are not legally required. The only time that you may have a legal right to return an item is when the item is damaged or defective at the time of purchase. Beyond that, any rights depend on the policies of the merchant or on any warranty provided by the seller or manufacturer.
In recent years, more merchants have started to place restrictions on returns and exchanges, both because of too common consumer abuse of these policies and because of marketplace pressures to manage costs in order to hold down prices for their products and services.
The other common “consumer myth” is that you have three days to cancel any contract. In fact, the right to a three day cancellation period is very limited – it applies only to contracts signed in your home and to only a few other contracts, such as those that involve a mortgage on your home. And the law specifically requires that cancelling such a contract must be done in writing and within three business days after signing the original contract.
In complaints to the BBB, confusion about the three day cancellation law is most often seen in car or truck purchase agreements. For example, the BBB received a complaint this week from a man who had gone with his son to look at trading in a truck his son owned for another truck that he had seen advertised. The father and son went to the lot, the son drove the truck that was for sale and liked it and, although the father said he didn’t think the trade was a good one, the son wanted to go ahead with the trade. Bottom line, he got home with the traded truck and changed his mind. The complaint to the BBB says, “We told them that we should have 3 days to rescind the contract…We then spoke with the owner (of the dealership), who refused to take the truck back.”
An agreement to buy a car or truck, signed at a dealer lot, is not covered by the three-day right of rescission law. Nor are most other contracts.
CLICK HERE for more detailed information concerning cases covered by the three-day right of rescission.
CLICK HERE for more detailed information concerning return and exchange privileges and rights.