How to draft a distance selling returns policy

To comply with UK law, you must allow online customers to cancel their order within 14 days of receiving it and provide a full refund within a further 14 days of receiving the goods back. This "cooling-off" period is a legal requirement under the Consumer Contracts Regulations 2013 and applies even if the customer simply changes their mind.

Why your returns policy matters

When you sell products online, by mail order, or over the phone, you are "distance selling." Because the customer cannot see the product in person before buying, the law gives them extra protection. If you fail to clearly inform your customers of their right to cancel, the 14-day return period could legally be extended to a full year, which can create significant financial uncertainty for your business.

The 14-day "Cooling-Off" period

The core of your policy must centre on two specific 14-day windows:

1. The right to cancel: The customer has 14 days from the day they receive their goods to notify you that they want to cancel or return the item. They do not need to give a reason.
2. The right to a refund: Once they have notified you, they have another 14 days to actually send the item back. You must then refund them within 14 days of receiving the goods (or evidence that they have been sent).

What to include in your policy

Your policy should be easy to find on your website and written in plain English. Ensure you cover these key points:

• How to cancel: Provide a clear method for the customer to tell you they want to cancel, such as an email address or an online form.
• Refund details: State that you will refund the full cost of the item plus the cost of standard delivery. If the customer chose a premium delivery option (like "Next Day"), you only have to refund the basic "standard" rate.
• Return shipping costs: Clearly state who pays for the return postage. If you don't explicitly say the customer has to pay for returns, the law assumes the business will cover it.
• Condition of goods: You can state that you may make a deduction from the refund if the value of the goods has been reduced by the customer handling them more than necessary (e.g., wearing a dress to a party rather than just trying it on).

Common exemptions

Not every product is eligible for the 14-day cooling-off period. You should list these exceptions in your policy to avoid confusion:

• Personalised items: Goods made to the customer's specifications (e.g., a custom-engraved ring).
• Perishable goods: Items that decay quickly, like fresh food or flowers.
• Hygiene-sealed items: Products like earrings, underwear, or swimwear where the seal has been broken after delivery.
• Sealed media: DVDs or software where the security seal has been broken.

Top Tip: Including a "model cancellation form" on your website—a simple template the customer can copy and paste into an email—is a legal requirement and makes the process smoother for everyone involved.

Final check for compliance

Before publishing, double-check that you haven't used "hidden" terms. You cannot charge "restocking fees" or admin fees for processing a legal return. Your goal is to make the process transparent; a fair and clear returns policy actually builds trust and encourages customers to shop with you again.