Customer Returns and Refund Laws by State
By Hannah Hilst | Legally reviewed by Melissa Bender, Esq. | Last reviewed January 16, 2024
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Almost every consumer has returned a retail item for a refund, exchange, or store credit. Sometimes, the product doesn't match the advertisement. Or, you might have simply changed your mind.
Merchants are required to accept returns in certain situations. Some states have laws governing the disclosure of refund and return policies. But these laws don't guarantee that getting a refund is possible in all cases.
In this article, learn how state refund and return laws protect customers. You can also see more details in FindLaw's section about warranties and returns.
Does the U.S. Require Refund Policies?
Many store policies allow returns if customers change their minds or receive unwanted items as gifts. This business practice is common since customers often like the extra flexibility.
Yet, retailers aren't legally required to accept returns in those cases. They must only honor the specific return policy they promise to customers at the time of sale.
Federal Law for Customer Returns and Refunds
Federally, retailers must accept returns under two basic scenarios.
First, federal law requires refunds if the product is defective. Small variations or cosmetic defects might not legally require a refund. But significant problems with the product's safety or functionality could conflict with the product's advertising.
The second scenario is when the seller breaks the sales contract. Sales agreements are binding like other contract types.
The Cooling-Off Period
The federal "Cooling-Off Rule" gives buyers three days to cancel purchases depending on the value. Keep in mind that this option doesn't apply to all transactions.
This rule applies to sales in several places, such as your home or a rental retail space. You can cancel a purchase worth at least $25 if you bought it during a door-to-door sales pitch. You can also cancel a purchase of at least $130 at a temporary retail location.
Your right to cancel for a full refund lasts until midnight of the third business day (including Saturdays) after the sale. If you have already received the product, you must promptly return it to the seller in saleable condition.
State Laws for Customer Returns and Refunds
In addition to federal law, many states regulate consumer refunds. States may or may not explicitly apply their laws to online sales.
Common Return Laws Across States
Like the federal Cooling-Off Rule, state laws may expand your option to cancel a purchase. The cancellation window could last longer or apply to more product types. Many states allow consumers to rescind club memberships or other special sales contracts within a specific number of business days.
Often, sellers must prominently display refund policies at the place of purchase to make them valid. The retailer's policy language usually must clarify other fees, such as restocking fees.
Regardless of whether your state requires disclosure of return policies, you should ask any retailer for their store policy before buying their products.
See Your State's Laws for Refunds
Only some states have specific laws for return and refund requirements. But all states require retailers to uphold their sales promises under consumer protection laws.
Check the chart below to read summaries of state laws and attorney general resources for retail sales.
There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under the Alabama Deceptive Trade Practices Act. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Retailers must disclose restocking fees if they deduct them from refunds. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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Retailers must clearly post their refund policy unless they offer a full cash refund, exchange, or store credit within seven days of the purchase date. Retailers failing this requirement are required to accept full refunds within 30 days of purchase. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under the Colorado Consumer Protection Act. |
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Each retailer may set its own refund policy, which they must disclose at the time of sale. If the retailer doesn't disclose or have a refund policy, a buyer may return purchased goods for a refund. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving prohibited trade practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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Retailers that don't offer refunds must clearly display this fact at the place of sale. If they fail to display it, customers may return goods for a full refund within seven days of purchase. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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Each retailer may set its own refund policy, which they must disclose at the time of sale. If the merchant doesn't properly disclose their refund policy, they must provide a refund. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under the Idaho Consumer Protection Act. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers may seek action for cases under the Illinois Consumer Fraud and Deceptive Business Practices Act. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, customers may seek action for cases involving deceptive consumer sales practices. |
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There's no right to cancel contracts or purchase agreements. Retailers that don't accept returns must disclose it. Customers may seek action for cases under Iowa's Private Right of Action for Consumer Frauds Act. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, customers can seek action for cases involving unfair or deceptive practices under the Kansas Consumer Protection Act. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, customers can seek action for cases involving unfair or deceptive practices under the Kentucky Consumer Protection Act. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, customers may seek action for cases under the Unfair Trade Practices and Consumer Protection Law. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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Retailers must post their return policies on the wall, the merchandise, or the receipt. If the retailer doesn't post the policy, they must accept returned merchandise within a reasonable time. |
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A seller must clearly disclose the refund, return, or cancellation policy to the buyer before the transaction is complete. This disclosure is often a sign at the point of purchase. Customers can return goods within a reasonable time if no return policy was disclosed. |
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There's no right to cancel contracts or purchase agreements except for in-home sales, gift promotions, and home equity loans. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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A seller must clearly display written notice of its policy in boldface type with a minimum size of 14 points. If a seller fails this requirement, they must issue cash refunds for goods that are acceptable for return. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, customers can seek action for cases under the Montana Unfair Trade Practices and Consumer Protection Act of 1973. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive trade practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair practices or defective goods. |
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Merchants must conspicuously post their refund policies. For up to 20 days after the purchase, businesses with no posted refund policies are liable to give the buyer a cash refund or a credit. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under New Mexico's Unfair Practices Act. |
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A store is legally required to post its refund policy. If the store doesn't post any return policy, the law requires the store to accept returns within 30 days of purchase. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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A merchant isn't required to have a specific refund policy, but it must post the policy clearly if it does. The consumer is entitled to a refund if a merchant doesn't post a refund policy. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under the Oklahoma Consumer Protection Act in Title 15, sections 751 to 765 of the state code. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under Pennsylvania's Unfair Trade Practices and Consumer Protection Law. |
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A poster or other notice at the point of display, cash register, or store entrance may notify customers that all sales are final, and customers can't return goods. Otherwise, a customer who has paid for an item can return the item within 10 business days from the date of purchase. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under the Tennessee Consumer Protection Act of 1977. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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If a seller has a non-refund, exchange, or credit policy, a sign posted at the point of display, the point of sale, or the store entrance must indicate the policy. The customer is entitled to a return if the seller fails this requirement. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices under Title 9, Chapter 63 of the Vermont Statutes. |
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A merchant must notify customers of its return policy by a sign attached to the goods or placed in a conspicuous public area of the merchant's premises. A merchant is exempt from this requirement if it provides a cash or credit refund within 20 days or more of purchase. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases under West Virginia's Uniform Commercial Code. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
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There's no right to cancel contracts or purchase agreements. Whether you can receive a refund depends on the retailer's return and refund policies. Yet, consumers can seek action for cases involving unfair or deceptive practices. |
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Refusal To Accept a Return
You read the store policy and checked the laws in your state. Perhaps you even considered disputing the credit card charge. But the seller still refuses to issue a refund.
A seller may wrongfully refuse to give customers their money back. Some sellers may even face accusations of consumer fraud. Charging customers for unsent merchandise or for different products under a bait-and-switch scheme are two examples of fraud.
You might need legal assistance with a product return or refund. You may file a complaint with your state's attorney general or an appropriate agency, such as the Better Business Bureau or Federal Trade Commission (FTC). Some cases could warrant taking direct legal action instead.
Questions About Customer Returns and Refunds Law? Ask an Attorney
You may need help to understand your rights as a consumer. The language in the law or company policy could be complex or unclear.
Speaking with an experienced attorney can clarify the laws that apply in your state. Reach out to a consumer protection attorney today for guidance.
Can I Solve This on My Own or Do I Need an Attorney?
- Consumer legal issues typically need an attorney's support
- You can hire an attorney to enforce your rights for safe products, fair transactions, and legal credit, banking and related financial matters
Legal cases for identify theft, scams, or the Equal Credit Opportunity Act can be complicated and slow. An attorney can offer tailored advice and help prevent common mistakes.
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