State to holiday shoppers: Know your refund and exchange rights before you buy

Hawaiʻi Office of Consumer Protection reminds consumers — especially with Black Friday and Cyber Monday coming in hot on the heels of Turkey Day — to review refund and exchange policies before making holiday purchases.

The office also reminds businesses about their legal obligations under the state refund statute.

“Understanding your rights before you buy can help prevent disputes and protect your wallet during the busy shopping season,” said Hawaiʻi Office of Consumer Protection Executive Director Mana Moriarty in a state release.

Key Consumer Rights

Hawaiʻi law states merchants with a specific return policy must post a sign that is clear and conspicuous — displayed where customers can easily see it before completing a purchase — describing the policy, including any limits on refunds, credits or exchanges, as well as any time limits or exclusions.

The merchant must accept returns and provide a refund, merchandise credit or exchange if no such sign is posted.

Refund requirements by payment type include:

• Cash purchases: A cash refund must be given at the time of return. Refunds more than $25 can be issued by check within 10 days.
• Check purchases: Refunds must be paid in cash or by check within 10 days. Merchants can wait up to 10 days after the check clears.
• Credit card purchases: Merchants must issue a credit to the card within 5 banking business days, or can provide cash immediately or a check within 10 days.
• Merchant credit accounts: Refunds must be credited to the account at the time of return.

Merchandise credits: Credits must be valid for at least 2 years. If no exchange is made within 30 days, a cash refund is required unless a conspicuous sign states otherwise.

Exchanges:

• For size or color exchanges, merchants must make the exchange regardless of the original price, subject to any price difference.
• For exchanges for different goods, consumers are entitled to a refund or merchandise credit if the replacement costs less.

Proof of Purchase: Merchants can require proof of purchase, such as a sales slip, receipt or credit card slip, as a precondition for allowing returns.

Ancillary Charges: Merchants can deduct repacking, transportation, restocking or administrative fees only if those charges were disclosed before purchase. Refund limits don’t apply to items already damaged or defective unless the issue was disclosed in writing. Consumers should keep receipts, return items within 60 days and keep products in original condition. Merchants can refuse returns after 60 days or if the item is used, damaged, altered or not resalable.

Requirements for Businesses

Acceptable posted policies include:

• Refunds only.
• Refunds or merchandise credit only.
• Exchanges or merchandise credit only.
• No refunds, merchandise credits or exchanges (“All sales final”).

Additional posting requirements apply if:

• The return period is fewer than 60 days.
• Certain categories of goods are excluded from the return policy.
• The goods are custom or specially ordered. For special orders, merchants must post signs or provide written notice acknowledged by the purchaser.

Merchants who fail to post the required signs must follow the statutory refund and exchange procedures.

Any act or policy that compromises a purchaser’s rights can constitute an unfair or deceptive act or practice under Hawaiʻi law.

Tips for Holiday Shoppers

• REVIEW return and exchange policies before purchasing.
• KEEP receipts or other proof of purchase.
• INSPECT items promptly and report defects immediately.
• BE AWARE of “all sales final” or excluded-category notices.