The Truth behind the Obligation to Take back Returned Items

Author

Ioana Maria Delapeta, Yannick Labelle

Organization

Union des consommateurs

Published

2015

Summary

Canadian consumers share a belief that consumer protection laws entitle them to unconditional returns within a given period. But this is a myth, because no Canadian provincial law gives them such a generalized right.

Union des consommateurs’ (UC) study is largely based on an examination of Canadian provincial laws (in 5 provinces, i.e., Quebec, Ontario, Alberta, Manitoba and Nova Scotia) and of certain foreign laws (in the European Union, the United States and Australia); on surveys among provincial agencies mandated to apply consumer protection laws, and among merchant associations; and on a field survey conducted among a hundred businesses in Canada. UC’s study of foreign laws found that numerous American States have regulated the disclosure of exchange, return and refund (ERR) policies and provide sanctions for merchants’ noncompliance.

The field study conducted in a hundred stores located in 5 provinces, i.e., Quebec, Ontario, Alberta, Manitoba and Nova Scotia, reveals that only around half of businesses display their ERR policies and their limits and conditions of application.

Around half of the stores that don’t display their ERR policies reported not notifying consumers of the existence or scope of those policies before purchases; the policies are most often found on the cash receipt – provided after the purchase, of course – or on their website. Some merchants mentioned that such policy information is provided verbally when consumers ask the question themselves. So consumers have to ask the right questions and will then have only their memories as proof of the policies’ existence or scope.

Therefore, given that many consumers falsely believe that the law gives them a right of return without having to give a reason when purchasing directly in-store, and that merchants’ ERR policies are often not displayed and are thus often unknown to consumers prior to purchase, UC recommends that merchants should be obliged to inform consumers of their rights and obligations under ERR policies.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database