Refunds and Store Credits
By Joseph A. Geary, Attorney
Clark, Campbell, Lancaster & Munson, P.A.
Q: “I returned merchandise and received a certificate from the store against future purchases. May the store impose time limits or other conditions on my use of the certificate?”
A: Generally, no. Under section 501.95, Florida Statutes, a “credit memo” (defined as “a certificate, card, stored value card, or similar instrument”) issued in Florida in exchange for returned merchandise, when the instrument is redeemable for merchandise, food, or services, may not have an expiration date, expiration period, or any type of postsale charge or fee imposed on it, including, but not limited to, service charges, “dormancy” (non-use) fees, account maintenance fees, or cash-out fees. Credit memos sold or issued by financial institutions or money services businesses, however, are not subject to these rules if the credit memo is redeemable by multiple unaffiliated merchants.
Q: “Are Florida retail establishments required by law to offer a refund, credit or exchange on goods sold?”
A: No. However, section 501.142, Florida Statutes, requires a retail establishment that sells goods to the general public and offers no cash refund, credit refund, or exchange of merchandise to post a “no refund” sign at the point of sale. The absence of such a sign means the store has a refund or exchange policy. A copy of the policy must be given, in writing, to a consumer upon request. A store that fails to comply with these rules must give the consumer, upon request and proof of purchase, a refund (not an exchange or credit) within 7 days from the date of purchase. The merchandise must be unused and in the original carton (if there was one) when the merchandise was purchased. Food, perishables, custom-made goods, custom-altered goods, or goods that are prohibited by law from resale are exempt from these rules.
Q: “Who enforces these laws? Are there penalties for non-compliance?”
A: The Florida Department of Agriculture and Consumer Services is principally charged with enforcing these laws. If the Department finds that a person has violated or is operating in violation of any of these laws, it may enter an order imposing a civil fine not exceeding $100 per violation and/or order the violator to cease and desist. Local governments may also issue a warning for a first violation and fines of up to $50.00 per violation for second and subsequent violations. An aggrieved consumer has no private right to sue at this time.