Your Rights to Refunds and Returns

The Surprising Truth About Federal Refund Rights

However, federal law does provide specific protections in certain situations:

What Federal Law DOES Require

1. FTC Mail/Telephone Order Rule

• If you order by mail, phone, or online and don't receive item within promised timeframe
• Seller must ship within advertised timeframe or 30 days if no timeframe stated
• If can't ship on time, must give you option to cancel and get full refund
• If you cancel, refund must be issued within 7 business days (credit) or one billing cycle (debit)

2. FTC Cooling-Off Rule (Door-to-Door Sales)

• 3-day right to cancel certain sales made at your home, workplace, or seller's temporary location
• Applies to sales of $25 or more
• Seller must inform you of cancellation rights
• Must provide cancellation form
• Full refund required if you cancel within 3 business days

3. Truth in Lending Act (Finance/Credit Products)

• 3-day right to cancel certain financial transactions
• Home equity loans and refinances (not initial mortgage)
• Some timeshares
• Must cancel in writing within 3 business days

4. Magnuson-Moss Warranty Act

• Doesn't require refunds but regulates warranties
• If product has written warranty and fails to meet warranty terms
• You may be entitled to refund, replacement, or repair
• See our Warranty Rights page for details

5. FTC Negative Option Rule

• For subscription services and automatic renewals
• Must allow you to cancel
• Must stop charges after cancellation
• Refund required for charges after cancellation date

What Federal Law Does NOT Cover

Federal law generally does NOT give you the right to a refund for:

• Change of mind on in-store purchases
• Buying the wrong size or color
• Finding a better price elsewhere
• Deciding you don't like the item
• Impulse purchases you regret
• Items bought during sales or clearance (unless state law requires)

Key takeaway: For most everyday purchases, your refund rights depend on state law and the store's return policy, not federal law.

State Laws Vary Significantly

Many states have laws that go beyond federal protections. State laws typically address:

• Whether stores must accept returns
• Required disclosure of return policies
• Limitations on restocking fees
• Special rules for defective merchandise
• Cooling-off periods for specific purchases

State-Specific Refund Requirements

California

• Stores must clearly post return policy at point of sale
• If no policy posted, must accept returns within 30 days for full refund
• 7-day right to return for full refund on most goods sold door-to-door ($25+)
• Special rules for wedding dresses, automobiles, and other items
• Gift certificates cannot expire for less than 5 years

New York

• Stores must clearly display return policy
• If no policy posted, store must accept returns within 30 days with receipt
• No refund policies must be posted on item or at register
• Special protections for wedding gowns (must disclose if non-returnable)

Florida

• No general requirement to accept returns
• Must honor posted return policy
• 3-day cooling-off period for door-to-door sales over $25
• Special rules for health studio contracts, timeshares

Texas

• No general requirement to accept returns on most merchandise
• Must honor stated return policy
• 3-day cancellation right for door-to-door sales over $25
• Special protections for certain contracts (home repairs, credit services)

Massachusetts

• Stores must clearly post return policy
• 30-day minimum return period required if policy not posted
• Applies to purchases over $20
• Store credit acceptable if no policy posted

Illinois

• No general refund requirement
• Must post if store has "no return" policy
• Special protections for door-to-door sales
• Layaway and installment sale protections

Common State Law Provisions

Policy disclosure requirements:

• Many states require stores to conspicuously post return policies
• Typically at point of sale, entrance, or on receipt
• If no policy posted, some states impose default return periods
• Default periods typically 7-30 days

"No refund" policy rules:

• Most states allow "no refund" policies
• BUT must be clearly disclosed before purchase
• Often must be posted on the item itself or at register
• Deceptive to have "no refund" policy without disclosure

Defective merchandise:

• Most states require refund, replacement, or repair for defective goods
• Even if store has "no refund" policy
• Based on implied warranty of merchantability
• Product must work for its intended purpose

Understanding Store Policies

Since federal law doesn't generally require refunds, store return policies become a contract between you and the retailer:

Stores must honor their posted policies:

• If policy says "30-day returns," they must accept returns within 30 days
• Cannot arbitrarily deny returns that meet policy requirements
• Cannot change policy retroactively on items you already bought
• Violating stated policy can be deceptive trade practice

Common Policy Terms to Understand

Time limits:

• Typical periods: 14, 30, 60, 90 days, or "anytime"
• Holiday extensions (many stores extend return periods for holiday purchases)
• Count from date of purchase or delivery (check policy)

Proof of purchase:

• Most stores require receipt
• Some accept bank/credit card statements
• Some require original form of payment present
• Without receipt, may offer store credit at current price

Condition requirements:

• "Unused" - typically means no signs of wear, tags attached
• "Original packaging" - must have box, accessories, manuals
• "Resalable condition" - clean, undamaged, complete
• Some stores have restocking fees for opened items

Refund methods:

• Full refund to original payment method
• Store credit or exchange only
• Cash refunds up to certain amount, then store credit
• Different methods for with/without receipt

Major Retailer Return Policies (2025)

Amazon

• Most items: 30 days from delivery
• Must be in new, unused condition with original packaging
• Return shipping often free (check by item)
• Refund to original payment method
• Some items non-returnable (computers, software, gift cards)

Walmart

• Most items: 90 days with receipt
• Electronics: 30 days
• Without receipt: Store credit at lowest price in last 90 days (up to $10 without receipt, $100+ requires ID)
• Online orders can return in-store or by mail

Target

• Most items: 90 days with receipt
• Electronics: 30 days
• RedCard holders: Additional 30 days
• Without receipt: Store credit or exchange at current price (ID required)

Costco

• Most items: Anytime, 100% satisfaction guarantee
• Electronics: 90 days
• Diamonds over 1.00ct: Must be returned within 48 hours with paperwork
• Special items (tires, batteries): Prorated refunds based on use

Best Buy

• Standard: 15 days from purchase
• Elite members: 30 days
• Elite Plus members: 45 days
• My Best Buy Total members: 60 days
• Must be in original condition with accessories, manuals

Final Sale and Non-Returnable Items

Common items that are often non-returnable or final sale:

• Hygiene items: Underwear, swimwear, earrings, cosmetics (health reasons)
• Personalized items: Custom-made, monogrammed, or engraved products
• Digital products: Downloaded software, music, movies, e-books
• Gift cards: Generally non-refundable once purchased
• Clearance/final sale: Items marked "final sale" or "as-is"
• Opened media: CDs, DVDs, video games (piracy concerns)
• Perishables: Food, flowers, plants
• Certain furniture: Custom-ordered or assembled furniture

Important exception: Even items marked "final sale" may be returnable if defective. You can't waive rights to functional, non-defective merchandise through a "no returns" policy.

Defective Products Trump Return Policies

If a product is defective, you have stronger rights than normal return policies:

Implied warranty of merchantability:

• All products sold carry implied promise they'll work for their intended purpose
• Applies even without written warranty
• Applies even if store has "no refund" policy
• Seller cannot disclaim for consumer goods in most states

What "defective" means:

• Product doesn't work as intended
• Product breaks or fails under normal use
• Product is missing essential parts or components
• Product poses safety hazard
• Product significantly different from what was advertised

Remedies for Defective Products

When you receive defective merchandise, you're generally entitled to choose from:

1. Full refund

• Return of purchase price
• May be required to return defective item
• Should include tax and shipping costs

2. Replacement

• Exchange for identical item that works
• Same model, color, size, etc.
• At no additional cost

3. Repair

• Fix the defect at no charge
• Must be done within reasonable time
• If can't be repaired, entitled to refund or replacement

4. Partial refund

• Keep defective item at reduced price
• Appropriate if defect is minor and you're willing to keep it
• Negotiate amount based on extent of defect

How to Handle Defective Products

Step 1: Act quickly

• Contact seller as soon as you discover defect
• Don't wait - delays can hurt your case
• Even if outside normal return window, defect claims may still be valid

Step 2: Document the defect

• Take photos or videos showing the problem
• Keep all packaging, receipts, warranty materials
• Write down exactly what's wrong
• Note when defect appeared and what you were doing

Step 3: Contact seller

• Explain the defect clearly
• State what remedy you want (refund, replacement, repair)
• Reference warranty if applicable
• Be firm but professional

Step 4: Put it in writing

• Follow up verbal requests with written complaint
• Send via certified mail or email with read receipt
• Include copies (not originals) of receipt and documentation
• Set reasonable deadline for response (e.g., 10-14 days)

Step 5: Escalate if necessary

• Ask to speak with manager or corporate customer service
• File complaint with manufacturer if sold through retailer
• Dispute charge with credit card company
• File complaint with state Attorney General or consumer protection agency
• Consider small claims court for higher-value items

Real Examples: Defective Product Claims

Example 1: Defective electronics

Consumer bought $800 laptop that stopped working after 45 days (outside 30-day return window). Store refused refund citing return policy. Consumer invoked implied warranty of merchantability, provided evidence of defect, and manufacturer replaced unit at no cost.

Example 2: Furniture falling apart

Consumer bought $1,200 dining table marked "final sale." Table legs became unstable after 2 months of normal use. Store initially refused refund due to "final sale" policy. Consumer showed state law requires defective items be refunded even when marked final sale. Store issued full refund.

Example 3: Appliance never worked properly

Consumer bought refrigerator that never cooled to proper temperature. After 3 repair attempts by manufacturer over 6 months, consumer invoked lemon laws for appliances (in states that have them) and state consumer protection law. Received full refund plus compensation for spoiled food.

Special Protections for Online Shopping

When you shop online, mail order, or telephone order, you have specific rights:

FTC Mail/Telephone Order Rule:

• Seller must ship within advertised timeframe
• If no timeframe stated, must ship within 30 days
• If can't ship on time, must notify you and offer to cancel
• You can agree to delay or cancel and get full refund
• If you don't respond, seller can assume you agree to first delay up to 30 days

Unordered merchandise:

• If you receive merchandise you didn't order, you can keep it for free
• Not obligated to return it or pay for it
• Considered unconditional gift
• Exception: Honest shipping errors (you can be asked to return at seller's expense)

Online Return Policies

Most online retailers have specific policies for internet purchases:

Common terms:

• Return window typically 30-90 days from delivery date
• Must be unused, in original packaging
• Return shipping may be free or at customer's expense
• Refund processed after item received and inspected

Who pays return shipping?

• If defective or wrong item: Seller must pay return shipping
• If you changed your mind: You may pay return shipping (check policy)
• If described as "free returns": Seller pays
• Some retailers provide prepaid return labels

Refund timing:

• FTC rule: Refunds for cancelled orders must be issued within 7 business days (credit card) or one billing cycle (debit/check)
• For returned items: Most retailers issue refund within 7-14 days of receiving return
• Credit appears on statement in 1-2 billing cycles

International Online Purchases

Buying from international sellers (especially platforms like AliExpress, Wish, etc.) creates challenges:

Challenges:

• May not be subject to U.S. consumer protection laws
• Return shipping very expensive or impractical
• Long delivery times (30-60+ days)
• Difficult to resolve disputes
• Items may not match description

Protections:

• Use credit card (not debit) for chargeback protection
• PayPal offers buyer protection for many purchases
• Platform guarantees (Amazon A-to-Z guarantee, eBay Money Back Guarantee)
• Check seller ratings and reviews carefully

What Is a Cooling-Off Period?

A cooling-off period is a legally mandated timeframe during which you can cancel certain purchases and get a full refund, no questions asked:

Purpose: Protects consumers from high-pressure sales tactics and impulse decisions in situations where you may not have had time to carefully consider the purchase.

FTC 3-Day Cooling-Off Rule

Applies to:

• Sales of $25 or more
• Made at your home, workplace, or dormitory
• Made at seller's temporary location (hotel room, convention center, restaurant)
• Made at locations other than seller's permanent retail location

Does NOT apply to:

• Sales made at seller's permanent business location (even if you were persuaded to go there)
• Sales made entirely online, by mail, or telephone (without face-to-face solicitation)
• Real estate, insurance, or securities
• Automobiles sold at temporary locations (if seller has at least one permanent location)
• Arts or crafts sold at fairs or other temporary locations
• Emergency home repairs where you request immediate service

Your rights:

• 3 business days to cancel from date of sale
• Seller must give you two copies of cancellation form
• Seller must give you notice of cancellation rights in writing
• Must state date by which you can cancel
• To cancel: Sign and date one copy of cancellation form, mail before midnight of 3rd business day

What happens when you cancel:

• Full refund within 10 days
• Any trade-in returned within 10 days (in substantially same condition)
• Any contract you signed cancelled
• Seller must pick up items within 20 days or you can keep them

State-Specific Cooling-Off Periods

Many states have additional cooling-off periods for specific purchases:

Common state cooling-off laws:

• Gym memberships: 3-30 days depending on state
• Timeshares: 3-15 days depending on state
• Dating services: 3-30 days in some states
• Credit repair services: 3-5 days in many states
• Dance studio contracts: 3-7 days in some states
• Hearing aids: 30-45 days in some states
• Home improvement contracts: 3-7 days in many states
• Discount buying clubs: 3-20 days in some states

Check your state law: Contact your state Attorney General for specific cooling-off periods in your state.

How to Cancel During Cooling-Off Period

Step 1: Act within the timeframe

• Count business days, not calendar days (Monday-Saturday, excluding federal holidays)
• Cancellation must be sent (not received) by midnight of the last day
• Keep proof you sent it on time

Step 2: Use written notice

• Use cancellation form provided by seller, or
• Write your own letter stating you're cancelling
• Include your name, address, date of purchase
• Sign and date the cancellation

Step 3: Send properly

• Mail to address given in cancellation notice
• Send via certified mail, return receipt requested
• Keep copy of cancellation letter and mailing receipt
• Postmark date is cancellation date

Step 4: Expect your refund

• Seller must refund within 10 days
• All money paid must be returned
• If you still have items, seller must arrange pickup
• You must make items available, but don't have to ship them back

What Are Restocking Fees?

A restocking fee is a charge (usually 10-25% of purchase price) that some retailers deduct from your refund when you return an item:

Why stores charge them:

• Cover cost of inspecting, repackaging, and restocking returned items
• Discourage returns
• Compensate for loss of value on opened items

Common items with restocking fees:

• Electronics (especially opened)
• Computers and tablets
• Mattresses
• Large appliances
• Special order items
• Opened software or media

Are Restocking Fees Legal?

Generally YES, but with important limitations:

Legal requirements:

• Must be disclosed: Store must inform you of restocking fee BEFORE purchase
• Must be conspicuous: Posted at register, on receipt, or on product
• Must be reasonable: Typically 10-25% maximum
• Can't apply to defective items: No restocking fee if product is defective or not as described

State limitations:

• Some states prohibit or limit restocking fees
• California: Must be disclosed at time of sale
• New York: Must be disclosed conspicuously
• Some states cap fees at certain percentages

Cannot charge restocking fee for:

• Defective merchandise
• Items not as described
• Wrong item shipped
• Items damaged in shipping
• Returns during cooling-off period (where applicable)

How to Avoid or Challenge Restocking Fees

Before purchasing:

• Ask about restocking fees before buying
• Check return policy carefully
• Consider buying from retailers without restocking fees
• Keep items sealed if possible until you're sure you'll keep them

When returning:

• If item is defective, you should not pay restocking fee - state this clearly
• If fee wasn't disclosed, challenge it - may violate state law
• Return in original packaging with all materials
• Ask manager to waive fee (sometimes works for loyal customers)

If charged improper restocking fee:

• Dispute with store management
• Reference state law requiring disclosure
• File complaint with state Attorney General
• Dispute charge with credit card company if fee was unauthorized
• Consider small claims court if amount is significant

Special Issues with Gift Returns

Returning gifts creates unique challenges since you're not the original purchaser:

No receipt, no original purchaser:

• Many stores require proof of purchase for returns
• Without receipt, may only get current price as store credit
• Some stores refuse gift returns without receipt entirely
• Gift giver's privacy prevents stores from looking up purchase without receipt

Options for Returning Gifts

1. With gift receipt

• Best option - shows proof of purchase without revealing price
• Usually allows exchange or store credit
• Some stores allow cash refund with gift receipt
• Subject to same return window as regular purchases

2. With original receipt

• If gift giver provides receipt, can return as normal purchase
• Full refund to original payment method (goes to gift giver)
• Or store credit/exchange for you

3. Without receipt

• Store may look up purchase if paid with credit/debit card (need giver's help)
• May offer store credit at current lowest price
• May require ID and limit no-receipt returns
• Some stores refuse no-receipt returns

4. Registry returns

• Wedding/baby registry items easier to return
• Registry tracks purchases
• Can often return for store credit or exchange
• Some stores offer cash/credit refund for registry items

Holiday Return Extensions

Most major retailers extend return periods for holiday purchases:

Common extensions:

• Items bought October-December returnable through late January
• Typically gives 30-60+ days from Christmas
• Same terms apply (receipt, condition, etc.)
• Check specific retailer for exact dates

Example holiday policies:

• Target: Items bought Oct 1-Dec 25 typically returnable through late January
• Walmart: Items bought Nov 1-Dec 24 returnable through mid-January
• Amazon: Items shipped Nov 1-Dec 31 typically returnable through late January

Best Practices for Returns

Before you return:

• Review store's return policy (online or ask at customer service)
• Confirm item is returnable and you're within time window
• Gather receipt, packaging, accessories, manuals
• Clean item if used (but don't alter condition)
• Take photos showing condition before packing for return

In-store returns:

• Bring receipt or order confirmation
• Bring original payment method if possible
• Bring ID if required by store policy
• Go to customer service or returns desk
• Explain reason for return clearly and politely
• Get receipt for return showing refund amount and method

Online/mail returns:

• Initiate return on retailer's website
• Print return label and packing slip
• Repack item securely in original or similar box
• Include all accessories, manuals, parts
• Ship via tracked method
• Keep tracking number until refund processed
• Allow 7-14 days after item received for refund to process

What to Do If Return Is Refused

Common reasons returns are denied:

• Outside return window
• No proof of purchase
• Item not in resalable condition
• Missing parts or accessories
• Item was marked final sale
• Return doesn't comply with stated policy

Steps to take:

1. Ask why

• Request specific reason for denial
• Ask to see return policy in writing
• Confirm you understand the issue

2. Escalate

• Ask for manager or supervisor
• Explain situation calmly
• Request exception to policy if circumstances warrant
• Note that loyal customers often get exceptions

3. Contact corporate

• If store manager won't help, contact corporate customer service
• Explain situation and what you want
• Reference purchase details and attempts to resolve
• Corporate often overrules store-level denials

4. Assert your legal rights

• If item is defective, cite warranty and state law
• If return policy wasn't disclosed, cite state disclosure law
• If within cooling-off period, cite FTC rule
• Be specific about what law applies

5. Consider alternatives

• Accept store credit instead of refund
• Exchange for different item
• Ask for partial refund
• Sell item yourself online (eBay, Facebook Marketplace, etc.)

Escalation Steps

If you believe you're entitled to a refund and the seller refuses:

Step 1: Document everything

• Keep all receipts, emails, correspondence
• Write down dates, names of people you spoke with
• Take photos of defect or issue
• Print copies of store policy, advertisements, product descriptions

Step 2: Write formal complaint letter

• Address to store manager or corporate customer service
• State facts clearly: what you bought, when, price paid, problem
• State what remedy you want (refund, replacement, repair)
• Reference applicable law or policy
• Set deadline for response (10-14 days)
• Send certified mail, return receipt requested
• Keep copy

Step 3: File complaints with authorities

• State Attorney General: Find your state AG
• Better Business Bureau: BBB.org
• FTC: ReportFraud.ftc.gov
• CFPB: (for financial products) ConsumerFinance.gov/complaint

Complaints create regulatory pressure and can result in enforcement action against deceptive businesses.

Step 4: Dispute the charge (if paid with credit card)

• See Chargebacks section below
• Very effective remedy for many situations
• Must act within 60 days of statement date

Step 5: Consider small claims court

• For purchases roughly $2,500-$10,000 (varies by state)
• No attorney needed
• Filing fees typically $30-$100
• If you win, seller pays court costs
• Good option when amount is significant and seller clearly violated law or policy

Step 6: Consult attorney (for large purchases)

• For purchases over small claims limit
• Many consumer attorneys offer free consultations
• Some state consumer protection laws allow attorney's fees if you win
• Attorney letter often prompts settlement

Your Right to Dispute Credit Card Charges

One of the best consumer protections: Your right to dispute credit card charges under the Fair Credit Billing Act:

You can dispute charges for:

• Items not delivered
• Items significantly not as described
• Defective merchandise
• Charged wrong amount
• Billed twice for same item
• Charges after you cancelled order or subscription
• Unauthorized charges

How Chargebacks Work

Step 1: Try to resolve with merchant first

• Credit card companies usually require you attempt resolution with seller
• Contact seller, explain problem, request refund
• Document this attempt (save emails, note phone calls)
• If seller refuses or doesn't respond within reasonable time, proceed to dispute

Step 2: Contact credit card issuer

• Call number on back of card or dispute online
• Explain the problem clearly
• State what remedy you want (typically refund/credit)
• Provide evidence (receipt, photos, correspondence with seller)

Step 3: Follow up in writing

• Send dispute letter to address provided by card issuer
• Send within 60 days of statement date
• Include your name, account number, transaction details
• Explain why charge is incorrect
• State amount in dispute
• Include copies (not originals) of supporting documents
• Send certified mail, return receipt requested

Step 4: Investigation process

• Card issuer must acknowledge dispute within 30 days
• Must investigate and resolve within 90 days (2 billing cycles)
• During investigation, you don't have to pay disputed amount
• Interest on disputed amount suspended
• Card issuer contacts merchant for their response

Step 5: Resolution

• If you win: Charge removed from account, any payments refunded plus interest
• If merchant wins: Charge stands, you owe amount plus any interest that accrued
• You receive written explanation of outcome
• If unsatisfied, you can appeal or pursue other remedies

Chargeback Letter Template

Important Chargeback Rules

Limitations:

• Must dispute within 60 days of statement date (not purchase date)
• Can't dispute quality issues beyond what was described (buyer's remorse)
• Must be charges over $50 for some protections
• Must have occurred in your state or within 100 miles of your address for some protections
• Should attempt to resolve with merchant first

Don't abuse chargebacks:

• Don't dispute legitimate charges
• Don't claim non-delivery if you received item
• Chargeback fraud is illegal
• Too many disputes can result in account closure
• Only dispute when you have legitimate claim

Credit vs. Debit cards:

• Credit cards have stronger chargeback protections
• Debit cards have some protections but weaker
• For online purchases, always use credit card when possible
• Easier to dispute charges that haven't left your bank account yet

Automobiles

Used car returns:

• Generally no return right (sold "as-is" in most states)
• Exception: California has 2-day return option for used cars (must be offered by dealer, costs extra)
• Lemon laws may apply if serious defects appear quickly
• Fraud or misrepresentation gives you legal remedies

New car returns:

• No federal or state law requiring return right
• Some dealers have return policies (typically 3-7 days)
• Lemon laws protect you if car is defective
• Check dealer policy before purchase

Mattresses

Trial periods:

• Many mattress companies offer 90-365 day trial periods
• Can return or exchange if not satisfied
• May require minimum trial period (30 days) before returning
• Some charge restocking/pickup fee
• Read trial period terms carefully before purchasing

Prescription Medications

Pharmacy returns:

• Most pharmacies don't accept returns of prescription medications
• Health and safety regulations prohibit restocking
• Exception: Wrong medication dispensed (pharmacy error)
• Some pharmacies accept unused, unopened medications in original packaging
• Check with specific pharmacy

Digital Products

Downloaded software, music, movies, e-books:

• Generally non-refundable once downloaded
• Platform policies vary (iTunes, Google Play, Steam, etc.)
• Some platforms allow refunds within short window if not downloaded/used
• If product doesn't work as described, may get refund
• Check platform's refund policy

Services

Contracted services:

• Home repairs, lawn care, etc.
• Many states have cooling-off periods for home improvement contracts
• If service not performed as contracted, entitled to refund or completion
• Partial refunds for partially completed work
• Review contract for cancellation terms

Prepaid services:

• Gym memberships, classes, subscriptions
• State laws vary on refund requirements
• Some states require pro-rated refunds if you move, become disabled, etc.
• Review membership agreement

When to File Complaints

File complaints when:

• Business refuses lawful refund
• Business violates stated return policy
• Didn't disclose "no refund" or restocking fee policy
• Refuses to refund for defective merchandise
• Deceptive advertising about products or return policies
• Pattern of refusing legitimate returns

Where to File

State Attorney General

• Find your state AG
• Enforces state consumer protection laws
• Can investigate businesses with pattern of violations
• Can bring enforcement actions
• Some states mediate individual disputes

Better Business Bureau

• BBB.org
• Contacts business to facilitate resolution
• Tracks complaints and ratings
• Not government agency but businesses care about BBB ratings

Federal Trade Commission

• ReportFraud.ftc.gov
• For deceptive trade practices, false advertising
• Tracks patterns of consumer complaints
• Can bring enforcement actions against companies

Consumer Financial Protection Bureau

• ConsumerFinance.gov/complaint
• For financial products and services
• Credit cards, auto loans, student loans, etc.

Recent Enforcement Actions

FTC vs. Online Retailer (2024)

• Violations: Failed to deliver products, refused refunds, ignored cancellation requests
• Penalty: $3.2 million in consumer redress
• Outcome: Company required to honor refund requests and improve customer service

State AG vs. Furniture Retailer (2024)

• Violations: Advertised products as in-stock when they weren't, delayed deliveries for months, refused refunds
• Penalty: $1.8 million settlement, refunds to affected consumers
• Outcome: Company must disclose accurate delivery timeframes and offer refunds for significant delays

Multi-State Action vs. Electronics Retailer (2024)

• Violations: Charged restocking fees without disclosure, refused refunds for defective items
• Penalty: $5 million across multiple states
• Outcome: Clear disclosure requirements for all fees, mandatory acceptance of defective returns

FTC vs. Subscription Service (2024)

• Violations: Made cancellation difficult, continued charging after cancellation, refused refunds
• Penalty: $4.7 million refunds to consumers
• Outcome: Simple cancellation process required, refunds for post-cancellation charges

Enforcement Trends

Areas of increased scrutiny:

• Subscription traps: Services that make cancellation difficult
• Dark patterns: Website design that tricks users into purchases or prevents returns
• Online marketplace accountability: Platforms responsible for third-party sellers
• Auto-renewal disclosure: Clear notice of automatic subscription renewals
• Refund timeframes: Enforcement of prompt refund requirements