Are Your Online Returns Compliant? A Retailer’s Guide to Getting It Right

Online shopping is showing no signs of slowing, and neither is the scrutiny around how returns are handled. A recent investigation found that 30 major UK retailers were misleading customers about their legal return rights. Alarming? Yes. But also a timely reminder that compliance isn’t just about box-ticking. It’s about trust.

If you're running an online retail business, staying compliant with consumer law is a must. But it’s also an opportunity to build loyalty, improve your customer experience, and show that your brand puts people first.

Here’s what you need to know, and how to make sure your policies are watertight.

Let’s break it down.

• It’s a legal requirement
  UK shoppers buying online have 14 days after delivery to cancel an order for any reason, and another 14 days to return it. You must refund the customer in full, including standard delivery costs.

• It protects your reputation
  Misleading information or restrictive returns policies can spark backlash, damage your brand and even lead to investigations.

• It gives you a competitive edge
  A clear, customer-friendly returns process is good business. In a crowded marketplace, it sets you apart.

Step 1: Understand the Legal Landscape

There are two key pieces of legislation to get familiar with:

1. Consumer Rights Act 2015
If a product is faulty, misdescribed or unfit for purpose, customers are entitled to a full refund within 30 days. After that, they can request a repair or replacement.

2. Consumer Contracts Regulations 2013
For online purchases:

• Customers have 14 days to cancel after receiving goods

• They have another 14 days to return them

• Retailers must offer a full refund, including standard delivery, within 14 days of receiving the returned item

A key rule to remember:
No store policy can override statutory rights.
You can offer more generous terms, but not less.

Step 2: Review and Refresh Your Returns Policy

• Check your wording: If your site says customers have only 14 days to return an item, it’s incorrect under UK law.

• Distinguish between goodwill and legal rights: Indicate which parts of your policy are voluntary and which are required by law.

• Include all products, including sale items, clearance stock, and discounted products—statutory rights still apply.

Step 3: Exceptions to the 14-Day Cooling-Off Period

While the 14-day cooling-off period applies to most online purchases, there are key exceptions where customers don’t have an automatic right to cancel. Retailers must make these clear in both product listings and returns policies to stay compliant.

Here’s where the cooling-off period doesn’t apply:

• Perishable goods
  This includes items like fresh food, flowers, or anything with a short shelf life.

• Custom-made or personalised products
  If an item is made to order, engraved, or tailored to the customer's specifications, it is not cancellable once production has started.

• Sealed goods not suitable for return once opened
  Think cosmetics, grooming products, or underwear. If the hygiene seal is broken, the item can’t be returned unless faulty.

• Digital content
  Once a download has started (with the customer’s consent), the right to cancel is lost.

Retailer tip: These exceptions must be clearly communicated to the customer before the sale is completed. If not, the exemption may not apply—and the customer could retain their right to cancel.

By being upfront and transparent about what's non-returnable, you reduce disputes and build trust. It’s a small detail, but one that can protect both your customer relationships and your business.

Step 4: Train Your Team

Compliance isn’t just for management; it needs to filter through your entire team.

• Frontline staff should understand the legal basics as well as your own returns policy

• If you offer in-store returns for online orders, make sure staff know how to process them correctly

• Train your customer service team to respond confidently and fairly to return queries

Customers can tell when someone’s winging it. And it undermines confidence, fast.

Step 5: Communicate Clearly and Actively

Returns policies should never feel like fine print.

• Share key info on your website, order confirmation emails, and receipts

• Make the process as easy as possible—customers shouldn’t need to chase or second-guess

• Where possible, go beyond the minimum. Generous, flexible policies can turn a one-time buyer into a loyal fan

Step 6: Be Proactive When Things Go Wrong

Even the best retailers get it wrong sometimes. What matters is how you respond.

• Make it easy for customers to flag concerns or confusion

• If your business is called out in a compliance review, act fast. Update your site, communicate the change, and move forward

• Use feedback to strengthen—not defend—your position

Go-To Resources for Retailers

Here are trusted resources to help you keep your policies compliant and current:

Resource	What It Offers
GOV.UK	Official legal guidance
Citizens Advice	Practical advice for businesses and shoppers
Trading Standards	Compliance support and enforcement
Which? for Business	Retail-facing consumer law guidance
MoneySavingExpert	Consumer rights news and policy updates
Business Companion	Free retail law guides and templates

 

FAQ: What Retailers Ask Most

Q: Can I refuse a return?
A: Not if the item is faulty, misdescribed, unfit for purpose or cancelled within the legal cooling-off period. Customers are entitled to a refund under those circumstances.

Q: How quickly must I process a refund?
A: For orders cancelled within the cooling-off period, you must issue a refund within 14 days of receiving the returned goods.

Q: As a retailer, do I have to pay for return postage?
A: You must cover return postage if the item is faulty, damaged, or not as described—that’s a legal requirement under the Consumer Rights Act 2015.

Suppose the customer simply changes their mind and returns an item within the 14-day cooling-off period (as outlined in the Consumer Contracts Regulations 2013). In that case, you're only responsible for the return postage if your policy doesn’t clearly state that the customer must pay. If your returns policy is upfront and clearly states that customers are responsible for return postage for change-of-mind returns, then the cost legally falls to them.

Clarity is key. Ensure your policy is easy to find and clearly outlines who pays what and when. It’s not just about compliance, it’s about building trust.

Final Thoughts

Returns can be a pain point or a proof point.

Getting your returns policy right isn’t just about avoiding complaints or legal headaches. It’s about delivering on your brand promise. When you respect your customers' rights, make things easy, and act with integrity, you’re building something more substantial than a sale. You’re building trust.

So take a moment. Audit your site. Train your team. Update that out-of-date policy page.

Because in today’s digital retail world, clarity is currency, and compliance is credibility.