MERCHANT ALERT: REFUNDS AND EXCHANGES

Posted on May 26, 2020 in Main

In response to the COVID-19 pandemic some local businesses may consider amending their refund and exchange policies. In doing so, they must be certain that they are fully compliant with all of the provisions of Hawaii’s refund and exchange law and ensure that all consumer purchases made prior to any change in policy are still subject to the businesses’ original disclosed policies at the time of purchase.

Pursuant to Hawaii law, businesses may establish one of four return policies:
1) Refunds Only
2) Refunds or Merchandise Credit Only
3) Exchanges or Merchandise Credit Only
4) No Refunds, Merchandise Credits or Exchanges

The business’s refund and exchange policy should be posted on a conspicuous sign at a place where the customer can easily find and read it.  Any policy change must be disclosed in a conspicuous location so that consumers are not misled.

If there are no conspicuous signs, the law requires businesses to accept the return of goods and to provide a refund.

Businesses are not allowed to charge or deduct restocking fees for processing a refund, merchandise credit or exchange. The only exceptions relate to certain custom orders, in which case businesses must post conspicuous signs or otherwise notify the purchaser, with the purchaser’s written acknowledgement of the return policy.

 

For more detailed information about refunds and exchanges, please see:

Hawaii Revised Statute §481B-5.5  Returns for refunds, merchandise credits, and exchanges

General information about refunds and exchanges