Conditional refunds: legal/ethical/FTC compliant?

8 replies
Hi - I'm curious; some people in the trading industry offer "conditional" refunds; such as "prove you tried it for at least (n) days and if you submit written proof to us, then we'll refund you". Is that even legal? Ethical etc?

It's like offering money back guarantee on physical item that's shipped in a container that self-destructs/nonresuable/tears apart (a common DM practice amongst some), to make it harder for a customer to return an item since they have to go then get their own box to return something.

Anyone know the ramifications of "conditional refunds" nowadays? I think either you should offer a full refund or not, personally, I think it's bad to make the customer "prove you tried to use it" and have to submit proof to the merchant, before being eligible to return something.

i understand merchants' perspective re they don't want instant refunders from non serious people; but making them prove and document they tried to use an info product or whatever, doesn't seem right.

-k
#compliant #conditional #legal or ethical or ftc #refunds
  • Profile picture of the author gpwilson
    This is not illegal at all. It could be their business strategy. But the real question is all about trust.
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  • Profile picture of the author wolfmmiii
    I have no problems with conditional refunds, especially when it comes to information products.

    My position is:

    I sold you information in good faith (information that I cannot "take back"). Before refunding you, I expect you to use it in good faith before saying it doesn't work.
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  • Profile picture of the author phil838
    It's completely legal and ethical, as long as the customer is made aware of the conditions before they purchase the product.

    Whether or not it's a good idea to do this is another story...
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    • Profile picture of the author garveyonweb
      The refund debate is a regular 'old chestnut'. Intellectual property cannot be taken back once read. The problem is that there are many serial refunders. Buy product... refund demanded 2 mins later. Setting the bar a little off the ground by asking for some proof of implementation at least inconveniences these people; hardly an unreasonable position when someone has gone to significant time etc to produce a product (unless its totally rubbish off course).

      A guarantee should increase conversation rate, which would hopefully offset the refund rate. Thats the kunundrum!
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  • Profile picture of the author Caleb Spilchen
    As long as the customer is agreeing to the refund policy as a term of purchase, it's perfectly legitimate.

    An example would be... "By Purchasing, you agree that you will not receive a refund, unless you follow our refund policy"...

    And policy could be "Provide screenshots of your action upon the information we have provided..." etc...

    Caleb
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    Canadian Expat Living in Medellin, Colombia

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  • Profile picture of the author kencalhn
    thanks all, interesting to hear your thoughts, thx
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  • Profile picture of the author Randall Magwood
    Marketers can offer conditional guarantees, but personally... offering a no-reason-at all, 100%, 12-month money back guarantee is the best that you can offer.
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  • Profile picture of the author CDarklock
    Originally Posted by kencalhn View Post

    Hi - I'm curious; some people in the trading industry offer "conditional" refunds; such as "prove you tried it for at least (n) days and if you submit written proof to us, then we'll refund you". Is that even legal? Ethical etc?
    It depends on the conditions. There are certainly conditions which would be neither legal nor ethical, such as "you may only have a refund if you are a white male over forty." But conditions in and of themselves are neither illegal nor unethical.

    Many people in many industries buy things and then immediately refund them, because they see an "unconditional" refund policy as an opportunity to get the product for free. That's unethical.

    Many vendors have therefore gone to a "no refunds" policy altogether, where you can't have a refund no matter what. That is both legal and ethical.

    Meanwhile, some people have started fraudulently claiming unauthorised use of their card to get a refund anyway. That is illegal.
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