After Christmas, many people find themselves with gifts that are of the wrong size, not to their taste or simply not what they wanted. A common reaction is to try to return the gift to the shop from where it was bought in exchange for another product or a credit note. For instance, a consumer may receive an item of clothing that does not fit or a piece of jewellery they would never use.
However, many are not aware that, under consumer law, shops are not obliged to accept returns in these situations. A retailer is only legally required to offer a remedy if the item is faulty, not as described or unfit for its intended purpose.
Although the law does not require it, many shops offer a ‘goodwill’ returns policy, allowing customers to exchange items or receive a credit note for certain products. For example, if a gift comes with a gift receipt, the recipient may be able to exchange it for another item or request a credit note.
The terms and conditions of how an unwanted gift can be returned are usually printed on the gift receipt. These typically include the deadline for returns, the requirement to present the receipt and sometimes also instructions to keep the original packaging intact.
However, there are exceptions. Made-to-measure or personalised items, perishable goods and products that come into close contact with the body, such as earrings, makeup or certain clothing items, are often excluded from return policies for hygiene reasons.
If a gift does not come with a gift receipt and the recipient does not know which shop it was bought from, they will need to ask the gift giver for the receipt. For example, if someone receives a household item of a particular brand that is sold by multiple retailers in Malta, they would need to check with the gift giver whether an exchange is possible. If it is, a copy of the original receipt would be required to proceed.
If the recipient knows from where the gift was purchased, they can try contacting the retailer directly to see if an exchange is possible without a receipt. In such cases, it is important to keep all labels, tags and packaging intact, as this increases the chances of a successful return. However, if the seller refuses to exchange the unwanted gift, since there is no obligation for them to do so, the recipient cannot take legal action.
“If a returned gift is faulty and cannot be repaired or replaced, the consumer is entitled to a full refund of the original price paid, regardless of any ongoing sales”
If a gift is faulty, it is important to remember that consumers have specific legal rights that cannot be limited by a shop’s return policy. In such cases, the consumer is entitled to have the defective item repaired or replaced at no cost.
If repair or replacement is not possible, a partial or full refund may be claimed. In such cases, the seller may require the refund to be issued to the person who originally bought the gift.
For example, if a blender received as a gift stops working after a few weeks, the recipient can contact the retailer to ask for it to be repaired or replaced. To make such a claim, the gift receipt or the original receipt is required. If the retailer cannot repair or replace the blender, the consumer is legally entitled to a refund.
If an unwanted gift is being exchanged at a shop that has already started its ‘sales’, the seller may offer an exchange based on either the current sale price or the original price paid. Since exchanges of unwanted gifts are part of a voluntary return policy and not a legal obligation, retailers are free to set their own rules.
For example, if a jacket originally bought for €80 is returned after the shop has begun a sale and the jacket is now priced at €60, the retailer may offer an exchange value of either €60 or €80, depending on their policy.
However, if a returned gift is faulty and cannot be repaired or replaced, the consumer is entitled to a full refund of the original price paid, regardless of any ongoing sales. For instance, if that same jacket has a broken zipper that was not caused by misuse and cannot be repaired or replaced, the consumer or the person who bought the jacket is entitled to claim a full refund of €80.
If a consumer encounters a problem with an unwanted or faulty gift, and the seller is not respecting their return policy or the consumer’s legal rights, assistance may be sought from the Office for Consumer Affairs within the MCCAA.
Odette Vella is director, Information and Research Directorate, MCCAA.
