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10% Restocking charge?

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  • zaax wrote: »
    As this is faulty item - incorrect size Sales of Goods Act applies. DSR only applies if you don't like something. This is faulty because the label shows the wrong size, and therefore as the goods are not of mechantable quaility you need all your money back including postage.

    Get the sellers name and address before shouting at him. If the seller is not in the ec you might have problems.

    I imagine that it's seconds that he's been selling, lesson learned, I'll stick to M&S/Debenhams in future. It is a UK seller, I just have issues with paying someone to bung something back in their box room.

    Thanks for the info.
  • ThumbRemote
    ThumbRemote Posts: 4,727 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Jinks wrote: »
    Hmm... If the seller is obliged to refund the original postage even if the buyer changed their mind or bought the wrong size, I suspect that the "restocking fee" they want is to cover that loss and deter customers from returning items without a good reason. That approach may not come across well to customers, but at the same time it's understandable that small businesses don't want to make a loss on a sale any more than the buyer does, especially if they haven't done anything wrong.

    A restocking fee is illegal. It doesn't matter how it comes across to customers, or that they want to avoid making a loss on a sale. It's still illegal.

    Customers are fully entitled to return items without good reason. If companies don't want to abide by the Distance Selling Regulations then they can stop selling online.
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Jinks wrote: »
    Hmm... If the seller is obliged to refund the original postage even if the buyer changed their mind or bought the wrong size, I suspect that the "restocking fee" they want is to cover that loss and deter customers from returning items without a good reason. That approach may not come across well to customers, but at the same time it's understandable that small businesses don't want to make a loss on a sale any more than the buyer does, especially if they haven't done anything wrong.

    I've actually seen a lot of eBay sellers who have this same "restocking fee". I don't know anything about business laws, but perhaps it may help to check with eBay customer service or ask on the eBay forum to find out if they are allowed to do this under the eBay selling regulations. If they aren't, inform them politely and hopefully they will be polite back - they may not be aware it's not allowed and just trying to cover their losses.

    Anyone with any sense will already be allowing for this "loss" in their calculations and adjusting their prices accordingly. There is always a cost to doing business regardless what size your business is.

    If they want to reach a wider customer base (via the internet) then they need to accept the costs associated with doing business online.
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • A restocking fee is illegal. It doesn't matter how it comes across to customers, or that they want to avoid making a loss on a sale. It's still illegal.

    Customers are fully entitled to return items without good reason. If companies don't want to abide by the Distance Selling Regulations then they can stop selling online.

    Only illegal when the consumer has the right to cancel under DSR or reject under SOGA. A retailer who accepts returns outside of the scope of the DSR/SOGA regs is perfectly entitled to charge a restocking fee.

    In this case the OP should just open a SNAD with eBay (having returned the goods tracked) if they don't get a full refund of the original payment.
    In the game of chess you can never let your adversary see your pieces
  • squeaky
    squeaky Posts: 14,129 Forumite
    10,000 Posts Combo Breaker
    Hi CharmCaster :)

    If you need any help in opening the dispute in Ebay - let me know and I'll move your thread from here across to our specialist Ebay board where the experts will be glad to provide assistance.
    Hi, I'm a Board Guide on the Old Style and the Consumer Rights boards which means I'm a volunteer to help the boards run smoothly and can move and merge posts there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com. It is not part of my role to deal with reportable posts. Any views are mine and are not the official line of MoneySavingExpert.
    Never ascribe to malice that which is adequately explained by incompetence.
    DTFAC: Y.T.D = £5.20 Apr £0.50
  • terra_ferma
    terra_ferma Posts: 5,484 Forumite
    Their return policy is illegal and warrants opening a dispute.
    They only reason you may want to give them a chance is that they may offer to pay your return postage, if they don't then it's straight to claim because they can't be trusted to be doing the right thing.
  • arcon5
    arcon5 Posts: 14,099 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Online sellers already benefit from significantly lower overheads than the average retailer and lower startup costs, thus much less risk involved in the setup and running of the business, so accepting returns and taking a hit on the original postage charge is a small price to pay for an online retailer.

    Also if you're in the fashion industry then you can't really moan when you have to loose a little bit of money on accepting returns - its an industry with probably the highest return rate of all
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Only illegal when the consumer has the right to cancel under DSR or reject under SOGA. A retailer who accepts returns outside of the scope of the DSR/SOGA regs is perfectly entitled to charge a restocking fee.

    In this case the OP should just open a SNAD with eBay (having returned the goods tracked) if they don't get a full refund of the original payment.

    But the problem then comes when companies state under "return" sections that returns will be subject to a 10% restocking fee.

    Since it can mislead consumers about their rights (and has the potential to deprive consumers of their rights), it would still be illegal. Even accompanied by "this does not affect your statutory rights", its still illegal because that term, with no explanation of what their actual rights are....is legal jargon (which is covered under unfair contract terms).

    Remember, these are statutory rights. Meaning you dont need to ask for them. Too many companies profit off of consumers ignorance of their rights. They are breaking the law by not complying all the time (instead complying only when customers specifically quote their rights).
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
  • Update.

    Emailed seller and returned item, along with a polite note advising that the restocking charge is not allowed under DSR and that the original P&P charge was also refundable. I have been partially refunded through paypal £40.50, the original cost was £48.24 (including P&P). It also cost me £6.55 to return it at my own cost.

    Am pretty fuming now, so have emailed the seller again and requested they refund the balance prior to my raising it with Ebay and/or trading standards.

    Is this too harsh?

    Just to note, I received the item last Monday so am well within timescales for return.
  • squeaky wrote: »
    Hi CharmCaster :)

    If you need any help in opening the dispute in Ebay - let me know and I'll move your thread from here across to our specialist Ebay board where the experts will be glad to provide assistance.

    Hi,

    Have never opened a dispute before, so any help would be gratefully received thank you.
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