FTC warns online retailers ‘no refund’ policies unlawful

The Fair Trading Commission (FTC) is issuing a strong warning to online retailers in Barbados that advertise “no refund”, “no return” or “all sales final” policies, declaring such practices illegal under the Consumer Protection Act and a breach of customers’ rights when goods are faulty.

Director of Consumer Protection Dava Leslie Ward said the commission had seen an increase in online businesses adopting policies that “go against consumer rights”, noting that Section 23 of the Consumer Protection Act makes clear that suppliers must repair, replace or refund consumers where goods are defective.

She stressed that the law applies equally to online and physical stores.

“When you see online businesses that are in breach of the law, you can definitely come to the commission,” she told Barbados TODAY in an interview.

“We are there to serve the public of Barbados. It does not matter whether the store is online. It does not matter whether the store is a physical one that you can go into.”

She added that if a product is defective, “you have to repay the consumer. You cannot just decide you are not going to do that because you have to follow the laws of Barbados.”

Leslie Ward said the FTC was working to put resources and systems in place to crack down on online businesses in the same way it inspects and regulates physical stores. She acknowledged the commission’s current limitations but confirmed that an expanded enforcement approach was being developed.

“That is what we are working on — to develop a closer system to deal with the online businesses,” she said. “We are currently looking at an approach for dealing with it, something that we are hoping to be able to roll out and work on very soon.”

But she noted that hesitant consumers have been a major setback in identifying breaches. She said there had been reluctance to file official reports about online companies and businesses in general.

“People would call and make complaints, but do not wish to make an official report,” she explained.

Leslie Ward stressed that consumers are often unaware of the authority they hold. “You have the power,” she said.

The FTC director reminded the public that reports can be made anonymously: “You can give us a call, and that can be totally anonymous. You can just say to us, you are a consumer, this is what you experienced. You do not have to give us any name or anything. You can just give us the information, tell us where to look, and we can go out and deal with it on our own volition because the law allows us to initiate investigations.”

Turning her attention to the challenges consumers face during the festive season, Leslie Ward added that buyer’s remorse was a major issue.

“This is where people go into the store, they see something that they like, it is beautiful, everybody is happy and jolly and merry. And in the spirit of giving, they go and buy what they want. Then a few days later, they go back into town or wherever they go, see it cheaper, and then call us and ask us if they can get their money back.”

She explained that refunds cannot be issued merely because a shopper changes their mind. “If you are just changing your mind and nothing is wrong with the item, you cannot get a refund. So we then have to tell the consumers that you cannot get a refund in that case,” she said.

Issues also arise when consumers attempt to exchange items that do not match their household décor.

“They get home and say: ‘Cheese on bread, this does not match. I cannot get an exchange because I do not want to spend more money necessarily,’” she said, adding that stores are not obliged to replace intact items.

Leslie Ward cautioned shoppers to check return policies before purchasing, especially during the Christmas rush: “Make sure you find out what the return policy is. And always note who you spoke to, and the time and the date. And also get their title.”

She said the FTC is committed to expanding outreach to young people, many of whom shop exclusively online.

“We need to try to reach the young people as well,” she said. “Because we know that those young people are shopping online. They are not going into a store.”

sheriabrathwaite@barbadostoday.bb