Do I have to give customers refunds?

Goods you sell to consumers must be of satisfactory quality, fit for purpose and as described (sections 9, 10 and 11 of the Consumer Rights Act 2015). If they aren't, the customer's remedy depends on timing:

• Within 30 days of delivery, they can reject the goods for a full refund (sections 20 and 22 of the Consumer Rights Act 2015). Perishable goods get a shorter period.
• After 30 days, they can ask for a repair or replacement, which you must provide within a reasonable time, without significant inconvenience and at your cost (section 23 of the Consumer Rights Act 2015).
• If one repair or replacement fails, they can choose a price reduction or reject the goods for a refund (section 24 of the Consumer Rights Act 2015). If they reject after the first 6 months, you can deduct an amount for the use they've had.

A fault that shows up within 6 months of delivery is presumed to have been there at delivery, unless you can show otherwise. After 6 months, the customer has to show it. Refunds must be paid within 14 days of agreeing the customer is entitled, using the same payment method, with no fee.

You can't remove these rights with a "no refunds" sign or terms (section 31 of the Consumer Rights Act 2015). The Act applies across the UK.

Digital content, such as downloads, apps and software, has no right to reject. If it's faulty, the customer can ask for a repair or replacement, then a price reduction, which can be up to the full price (sections 43 and 44 of the Consumer Rights Act 2015).

Services must be carried out with reasonable care and skill (section 49 of the Consumer Rights Act 2015). If they aren't, the customer can ask you to redo the work at your cost, or get a price reduction if that isn't possible or isn't done in a reasonable time (sections 55 and 56 of the Consumer Rights Act 2015).

For sales made online, by phone or by mail order, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 let consumers cancel without giving a reason:

• Goods: 14 days from the day after delivery. They then have another 14 days to send the goods back.
• Services and digital downloads: 14 days from the day after the contract is made.
• Refund: within 14 days of receiving the goods back, or proof they were sent if earlier, including standard delivery. You can deduct for any loss in value caused by handling beyond what a shop would allow.
• Return postage: the customer pays only if you told them so before they bought.

If you don't tell customers about the right to cancel, the cancellation period can be extended by up to 12 months.

Exceptions include goods made to the customer's specifications or clearly personalised, goods that go off quickly, and sealed hygiene items, audio, video or software once unsealed. A customer loses the right for a download once it starts if they expressly agreed to that and acknowledged losing the right. If they ask for a service to start within the 14 days and then cancel, they pay for what you've already provided.

For goods bought in person, there's no legal right to a refund just because the customer changed their mind, for example about the size or colour.

Many shops offer change-of-mind returns anyway. If your returns policy, receipt or signage promises refunds or exchanges, you must honour it. You can set conditions, such as a time limit, proof of purchase or unused goods, as long as they're clear and don't cut back the rights above.

The Consumer Rights Act 2015 and the 14-day cancellation right only protect consumers: individuals buying wholly or mainly outside their trade, business, craft or profession.

For sales to other businesses, the Sale of Goods Act 1979 implies terms that goods match their description and are of satisfactory quality (sections 13 and 14 of the Sale of Goods Act 1979). Your contract can limit those terms if the limits are reasonable under the Unfair Contract Terms Act 1977. There's no cooling-off period for business sales unless your terms give one.