Companies often try to make consumers more comfortable with purchases by offering refunds or satisfaction guarantees. But it is critical that these policies are accurately conveyed to consumers to ensure they are not misled. One of the most common pitfalls is claiming that a purchase is “risk-free.” Of course, nothing in life is without risk. As a general rule, this phrase should be avoided because it is easily construed as deceptive or misleading by regulators or crafty plaintiff’s lawyers.
Outside of this, the terms of the offer should be clear and any statements made about the policy are accurate. For example, are shipping and handling costs also refundable? Does the policy apply only to a consumer’s first purchase? Does the merchandise have to be in a particular condition – unopened or with tags still attached? All of these terms should be clearly conveyed to the consumer prior to any purchase. Our advertising and marketing team has substantial experience drafting and advising on refund and similar consumer-facing policies.
