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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111679
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Can i add a restock fee to a contract that has a 3 day right

Customer Question

can i add a restock fee to a contract that has a 3 day right of rescission and enforce it if my product is not returned in its original condition
JA: The Lawyer will need to help you with this. Have you consulted a lawyer yet?
Customer: no
JA: Please tell me everything you can about this issue so the Lawyer can help you best. Please give me a bit more information, so we can help you best.
Customer: the question is pretty clear. if your later is not familiar with the 3 day right they can read it on the FTC site
JA: Is there anything else important you think the Lawyer should know?
Customer: no
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Submitted: 6 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Legally, as the seller of the product, you can set the terms of any returns or refunds. If you want to set a reasonable restocking fee as a condition of returns/refunds, then legally you can do so. You would have to have that fee written into the terms and conditions of your sale under your return policy and it would indeed be enforceable.
Customer: replied 6 months ago.
But the FTC states that they are not to be charged for anything within the 3 days and should get a full refund
Expert:  Law Educator, Esq. replied 6 months ago.

Thank you for your reply.

Not all products contain a 3 day right of return and in fact most products do not have any statutory right, it is controlled by contract with the seller/buyer. So you can indeed have a return policy that does have a reasonable restocking fee and many sellers of products have such a return policy and it is not against any laws. The FTC guidance (it is guidance and not law) says no restocking fee should be charged on returns within 3 days unless there is a clear communication of the return policy to the customer.

Customer: replied 6 months ago.
Ok and this also applies to what's considered "door to door" or in home sales because I was under the impression that that is a federal law that applies to that. We are selling in home and we do have a 3 days right on every contract
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
This even applies to door to door type sales. As long as the restocking fee is made clear before the sale to the buyer, it may be charged if the item is not returned properly in original packaging.
Customer: replied 6 months ago.
when you say clear if we verbally tell them about it and have them initial that section of the contract is that sufficient
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
It has to be written in the contract and if they initial agreeing to it that is sufficient notice.

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