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What is a Refund Policy?
A refund policy notifies the terms for offering a refund to the customer. It is essential to make sure that customers making payment for the product/service at the website are aware of whether they will be eligible for a refund or not, the grounds for refund, and what percentage of the payment will be refunded.
Every e-commerce business that allows a customer to purchase from the website should have a refund policy to answer all refund-related queries.
Some of the key points included in this template are:
(a) Where Refunds Apply
(b) Special wording has been inserted for EU Right of Withdrawal
(c) Effects of withdrawal
(d) How to Request a Refund
(e) Abuse of refund policy
Refund Policy for a Website or Mobile App. Special wording has been inserted for the EU Right of Withdrawal. The user is deemed to have accepted them by using the service.
This document can be used as a template for a Refund Policy for a company's website. The user is deemed to have accepted them by using the service.
The website name and how many days should a refund will be requested should be clearly stated in the template.
There is no specific legislation regulating online retail business in Hong Kong.
The Trade Descriptions Ordinance (Cap. 362) and Sale of Goods Ordinance (Cap. 26) ("SGO") are generic consumer protection laws protecting general consumers against unfair trade practices. They do not contain provisions requiring online retailers to provide information such as shipping policy, cancellation policy, or goods refund/return policy.
Is refund policy a legal requirement?
No, a refund policy is not a legal requirement but it is strongly advised to have one. It makes the buyer bound by the terms of the refund policy when purchasing from the website. A clear refund policy will also prevent disputes with the buyer.
When do I need a Refund Policy?
If you are an e-commerce business that offers the buyer to purchase from the website then you need a clear refund policy to answer all refund-related queries of the buyer.
Where should I display the Refund Policy on the Website?