Chapter 05. Refund Policy of Retailers
Regulation .01 General.LinkCopy Citation
These regulations are promulgated pursuant to the Commercial Law Article, §13-205, Annotated Code of Maryland. The provisions of the Commercial Law Article, §13-301(9), Annotated Code of Maryland, declare it to be an unfair or deceptive trade practice to knowingly conceal, suppress, or omit any material fact with the intent that a consumer rely on the same in connection with the promotion or sale of any consumer goods. The refund and exchange policies or a policy of no refunds or exchanges is material to consumers in making purchasing decisions, and consumers necessarily rely upon representations, past business practice, and the absence of a declared polity in making purchasing decisions.
Regulation .02 Findings and Purpose.LinkCopy Citation
A.
Findings. The Division of Consumer Protection of the Office of the Attorney General and the Consumer Council find that the refund and exchange policies of merchants, when left unstated, place the consumer at a disadvantage, particularly with merchants who vary refund and exchange policies with different consumers or who change policies without notice. Merchants' failure to communicate policies on refunds and exchanges, be it a policy of no refunds, cash refunds, or credit for returned merchandise, is a practice which is unfair and deceptive.
B.
Purpose. The purpose of these regulations is to require that a policy, a change in policy, or special sales promotion policies (such as final sale, fire sale, sale on “as is” merchandise, no returns, etc.), be clearly communicated to the consumer in all retail sales and to declare it to be an unfair and deceptive practice to fail to communicate the merchants' policies.
Regulation .03 Definitions.LinkCopy Citation
A.
The definitions of “consumer”, “consumer goods”, and “merchant” are, for the purposes of these regulations, the same definitions as are contained in Commercial Law Article, §13-101, Annotated Code of Maryland.
B.
“Retail sale” means the sale of goods for the use or consumption of the consumer or for the benefit or satisfaction which the consumer may derive from the use or consumption of the goods by another. “Retail sale” does not include the sale of goods for resale by the purchaser.
Regulation .04 Unfair and Deceptive Trade Practices.LinkCopy Citation
It shall be an unfair or deceptive trade practice prohibited by Commercial Law Article, §13-303, Annotated Code of Maryland, for a merchant in any retail sale to fail to disclose to all customers in writing, either on the sales form, by a clearly visible sign, or by conspicuous label on the consumer goods, the terms and conditions of the merchant's refund and exchange policies, or a policy of no refunds or exchanges. A merchant shall be deemed in compliance with the requirements of this regulation if the merchant discloses to the customer in writing any time limit on refunds or exchanges and, upon request by the customer or gift recipient, within a reasonable time of the purchase:
A.
Gives a cash refund for a cash purchase;
B.
Gives a cash refund or account credit for a credit purchase;
C.
Gives a cash refund, account credit, or merchandise exchange for a gift purchase; or
D.
Otherwise complies with the refund and exchange policies disclosed.
Regulation .05 Exemptions.LinkCopy Citation
The provisions of Regulation .04 do not apply to the sale of:
A.
Food, perishable goods, goods which are custom made, or which are custom-altered at the request of the consumer; or
B.
Goods which cannot be resold by the merchant because of any valid law or regulation promulgated by a governmental body.
Chapter annotations
Authority: Commercial Law Article, §13-205, Annotated Code of Maryland
History: Effective date: September 1, 1976 (3:15 Md. R. 784)