Fair Trading

MCIL through Fair Trading offers guidance to help inform the public about refund policies and the circumstances under which goods can be returned. Customers are entitled to a refund, repair, or replacement if a product has a hidden defect, does not match its description, or is not fit for its intended purpose. Manufacturers also have a duty to address legitimate claims. However, consumers are not always legally entitled to a refund—for example, for incorrect sizes or unwanted gifts. When goods are unsuitable, customers should be offered the choice of a repair, replacement, or refund. Both retailers and manufacturers share the responsibility for resolving valid claims, and retailers must uphold consumer rights regardless of any misleading signage.

World Consumer Rights

World Consumer Rights Day is commemorated every year on 15 March. This global event celebrates the historic declaration of fundamental consumer rights, aiming to raise awareness and promote fair and safe consumer practices. These eight core rights include:
    • Right to Satisfaction of Basic Needs (Aia tatau mo le faamalieina o Manaoga Masani)
    • Right to Safety (Aia tatau mo le saogalemu)
    • Right to Information (Aia tatau mo Faamatalaga)
    • Right to Choose (Aia tatau mo lau Filifiliga)
    • Right to Representation (Aia tatau mo le aafiaga faa-le-tulafono)
    • Right to Redress (Aia tatau mo le totogi o oloa ma auaunaga ua le talafeagai)
    • Right to a Healthy Environment (Aia tatau mo se Siosiomaga Mama)

WCRD serves as a reminder of the importance of protecting consumer rights and empowering individuals to make informed choices in the marketplace.

When can customers return goods?

Understanding the rights of customers when they return goods can help you determine whether a complaint is valid. It may also help to avoid unnecessary legal battles. A customer can return goods for a refund, repair or replacement if

  1. The item has a fault that would not normally be detected at the time of purchase.
  2. The item is not the same as described by the salesperson, or on a label or sign, or in an advertisement, or does not match the sample shown.
  3. The item is not suitable for the customer’s intended use as described to the salesperson before the purchase.

Manufacture responsibility

In cases where a customer makes a valid complaint, the retailer holds the main responsibility to provide a solution—whether that’s a refund, repair, or replacement. If there’s uncertainty about whether the problem is due to a manufacturing fault, retailers may consult with the manufacturer or importer to confirm the issue.

After compensating a customer, you may be able to claim against the manufacturer or importer. However, this is not subject to the Fair Trading Act which applies to transaction between traders and consumers only. It is wise for you and your suppliers to work out arrangements for satisfying customer complaints relating to manufacturing faults. If you establish procedures for quick replacement of faulty items you can ensure that complaints are handled efficiently and there is little disruption to your business.

Customers are not always right

Sometimes, customers do not have a legal right to a refund. The item may be the wrong size. It may be an unwanted gift. Perhaps the customer has changed his or her mind. In these circumstances you are not obliged to refund the money, exchange the goods or even give a credit note unless this has been agreed by yours salesperson before the sale or it is your Store’s stated policy. Remember, though, that satisfying such a customer may be worth the goodwill created. You may wish to make the customer aware that they are receiving a special service in being allowed to return the goods. When customers are returning faulty goods, they may also lose their right to a refund if the goods have not been used in accordance with instructions, or have been abused or damaged.

Repair, Replacement, or Refund

Customers are entitled to a refund if a product is unsuitable due to a fault, not matching its description, or not being fit for purpose. It is the customer’s right to choose whether they prefer a repair, a replacement, or a refund. However, if the issue is minor and can be fixed quickly, offering a repair may be reasonable.

The business is responsible for covering all costs associated with repairing the item, replacing it, or providing an equivalent product. Signs such as “No Refunds” or “No Refunds on Sale Items” are misleading and against the law. Customers still have the right to return faulty goods, even if the item was purchased on sale.

Page updated: 11 June 2025

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