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Admin Or Restocking Charges On Refunds

I've noticed on a lot of small independant online shops that in their terms and conditions, they state they will charge sometimes up to 25% admin or restocking fee if you ask for a refund.

Finding out from personal experience at the moment.

Just wondering if they can leagaly do this?

I have heard the distances selling regulation has something in it saying they can't. Just wondering if it's true.

Comments

  • aeuerby
    aeuerby Posts: 782 Forumite
    The distance selling regulations state that a customer has the right to return items within 7 days of receipt, unused.

    It also states that the seller/shop has a right to charge a restocking fee if they wish.
  • I've just found this on the office of fair trading.

    Return of goods following cancellation (Regulation 17)
    Who pays for returning the goods if the consumer cancels
    an order?

    3.55 If you want the consumer to return the goods and to pay for
    return, you must make it clear in the contract and as part of
    required written information – see paragraph 3.10. If the consumer
    then fails to return the goods, or sends them at your expense,
    can charge them the direct cost to you of the return, even
    have already refunded the consumer’s money. You are not
    to make any further charges, such as a restocking charge or
    administration charge.

    3.56 If you did not include these details in the required written
    then you cannot charge anything. See paragraph 3.10. You
    require consumers to pay the cost of returning substitute
    see paragraph 3.1 for more information.
    3.57 If the goods are faulty or do not comply with the contract,
    have to pay for their return whatever the circumstances.


    I have also found bits in there saying they should make a refund before they even recieve the goods. That can't be right can it?

    So can they charge a restocking fee?

    I'm confused.
  • aeuerby
    aeuerby Posts: 782 Forumite
    Having looked into this further (you got me wondering!) I found this....

    "You may charge consumers a restocking fee if, after the DSRs
    cancellation period has expired, you allow them to return unwanted
    goods that conform to the contract. This fee should reflect the actual
    costs you incur. "



    When we first set up our website I am fairly sure the OFT stated we could charge a restocking fee but now I'm not so sure....
    I think I will do some more rummaging!
  • pigeonpie
    pigeonpie Posts: 1,216 Forumite
    spurs_nut (from a gooner :-) ) in my ongoing dispute with John Lewis, the OFT and Consumer Direct told me that any restocking charge must be clearly written in their T&Cs which it isn't with JLD but seems to be the case for your purchase. It's a way to dodge the Distance Selling Regs' right to cancellation. (OFT need to have a good hard look at ways retailers are getting around the law!)
    However you must be told in writing up front about this when you ordered.
    Good luck.
  • aeuerby
    aeuerby Posts: 782 Forumite
    I've now found this:

    http://www.vnunet.com/vnunet/news/2123698/tailers-given-oft-guidelines?vnu_lt=vnu_art_related_articles

    It would appear that restocking fees are not allowed now :confused:

    But like you I am completly confused!
  • spurs_nut
    spurs_nut Posts: 329 Forumite
    Ok, Thanks anyway guys
This discussion has been closed.
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