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A Refund Policy is a document created by the operator of a website or mobile application which clearly delineates that operator's rules and conditions on offering refunds on purchased items. A Refund Policy is not a negotiated contract - in other words, there are not two sides to this document. It is just a business or individual business owner notifying customers of their particular policy on returns (if applicable) and refunds.
In a Refund Policy, the operator of the website or mobile app will disclose all of the necessary information for a valid refund (or, conversely, the operator will discuss whether certain items are nonrefundable).
A Refund Policy is a good idea for any website or mobile app which allows customers to purchase items. This Refund Policy is not just applicable to the sale of physical goods, it can apply to the sale of digital products or services, as well.
Please be advised that for sales not at the seller's usual place of business, the federal "Cooling-Off" rule may apply. This rule gives customers the right to cancel a sale made at their home, workplace, or dorm that was under $25 or cancel a sale made at a seller's temporary location, like a fairground, motel, or convention center that was under $130. An attorney licensed in the relevant jurisdiction will be able to assist.
How to use this document
This document can be used for any individual or business that currently sells products or services and needs a well-written Refund Policy covering all of the conditions applicable to their business model.
The customer is not required to sign this document. Instead, it is provided to the customer at the point of purchase, so that the customer can be aware of the policy prior to buying anything from the operator.
Here, the form-filler will be asked about what items are refundable, within how many days a refund will be requested, other notes for the customer, and the business or individual's contact information.
When this document is filled out, it is a good idea to have it posted online and made available in a prominent location at the point of sale.
Refund Policies are subject to both state and federal law. The federal government propagates the "Cooling-Off" rule which allows for the cancelation of a contract for sale under certain conditions. State laws, however, are the primary drivers of refund policies. Certain states, such as California, Connecticut, Florida, Hawaii, Maryland, Massachusetts, New Jersey, New York, Ohio, Rhode Island, Utah, and Virginia, require retailers to make buyers aware of their refund policies or face a default refund rule established by the state.
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