As a consumer, you have certain rights. But you also have responsibilities. You have the right to expect quality products and services at fair prices. You also have the right to complain to businesses when you are not satisfied with your purchases. But you also have the responsibility to find out a store's policies (especially when it comes to refunds and exchanges) before you buy, and to present your complaints accurately and fairly afterwards.

Contrary to popular belief, merchants don't have to accept returns. Luckily, though, most of them realize that a fair refund and exchange policy helps keep customers happy - and keeping customers happy is good for business.

Shop smart. It pays.

The best way to protect yourself is to be an informed consumer. That means you should:

• Compare prices, guaranties or warranties, agreements and other features. Try to learn as much as you can about the product or service before you buy.
• Avoid impulse buying. Do you really need this item? Can you afford it? Is this the best price?
• Buy from sellers you know and trust. Ask friends and family about their experiences with products or businesses.
• Ask about the store's refund and exchange policy. Ask what the seller will do if you don't like what you bought. Ask if the policy applies to sale merchandise.
• Make sure you understand what the guaranties, warranties or agreements say. Don't be afraid to ask for a simpler or clearer explanation.
• Examine the goods carefully. Try on clothes to make sure they fit properly. If you're shopping for appliances, ask for demonstrations. Be especially careful when buying a gift.
• Get any agreements or promises in writing.
• Keep your receipts, cancelled cheques, copies of ads, contracts, bills and other important papers.
• Be wary of extravagant sales claims. If it sounds too good to be true, it probably is.
• Teach your children about their rights and responsibilities as consumers if they're old enough to shop. They, too, can ask for a refund or exchange in the right circumstances.

It's your responsibility to find out and make sure you understand a store's return policy before you buy. The questions you should ask include:

• Does the store give full refunds? If not, does it give partial ones, exchanges, credit notes or other compensation?
• What do I need to prove I bought something in your store? A sales slip? A cancelled cheque? A charge-account billing? The original packaging?
• Does the store refuse to give refunds or exchanges on certain items? Bathing suits? Underwear? Shoes? Records? Items on special sale?
• What condition can the merchandise be in? Unopened? Opened, but not used? Slightly used? Damaged from use?
• Do I have to return the goods within a certain period of time?

If you have a problem

Sometimes you won't get what you want even if you shop smart. But you may not have to settle for a product or service you are dissatisfied with. You have the right to complain. For your best chance at success:

• Find out about your legal rights. Are there any laws or regulations that can help you? Find out by visiting your local library, contacting the Ministry of Consumer and Business Services General Inquiry Unit, or calling a lawyer.
• Be prepared to negotiate realistically. Stores that don't give refunds might be persuaded to exchange or repair your purchase or make other arrangements.
• Be polite. You'll get better, and maybe quicker, results if you explain the problem and ask for a resolution without resorting to anger or threats.
• Be clear. Know your facts -- preferably by keeping a file with all the necessary documents, including your cancelled cheques—and use them to ask for what you want.
• Talk to the right people, in the right order. Give each person enough time to resolve your complaint. Start with the sales clerk, then move onto the customer service office (if there is one) or the manager. If that still doesn't work, contact the store's head office, your local Better Business Bureau, consumer, industry or trade associations, or the Ministry of Consumer and Business Services General Inquiry Unit.
• Keep good records. Note the names of people you talk to, as well as the dates, times and outcomes of the conversations. Send a letter (see section below).
• If all else fails, you may want to go to small claims court. The amount in question can't be more than $10,000. You won't need a lawyer, but you do need solid evidence. To find out more about going to court, contact the office nearest you or check the blue pages under the Attorney General, Small Claims Court.

How to write a complaint letter

You can mail a registered letter or hand-deliver one to the person in charge if you're not satisfied with a particular product or service. It should include your name, address and telephone number; the name and type of product bought, date you bought it and price you paid; an outline of the problems and your attempts to solve them; copies of receipts or other documents (keep the originals for yourself); and what you want the store to do about your problem.

Keep the letter brief and to the point. Type it if possible, or make sure your handwriting is neat and easy to read. Keep a copy for yourself. Ask for a response within a specific time, such as two weeks.

If you have signed an agreement to make regular payments on your purchase, send a copy of your letter to the finance company or institution that gave you credit.

If you feel a product doesn't live up to sales claims, advertisements or other representations, you can demand your money back within six months. Do this by sending a cancellation letter -- called a letter of rescission -- by registered mail. The letter should say: "I exercise my right of rescission under Section 4 of the Business Practices Act." Include your reasons for doing so.

Rights and responsibilities of businesses

The best defence against unhappy customers is a clear refund and exchange policy.

Display the policy prominently near the cash register, the fitting rooms or any busy location. Large stores often state their policy in their advertising. Others have it printed on sales tags or receipts.

The wording should be as clear and simple as possible. If your store serves many customers whose first language is something other than English, consider translating the message into other languages.

Your notice, whether it's printed on a poster or on the receipts, should contain the following information:

• whether you give refunds
• whether you will exchange merchandise
• whether you give credit notices or other forms of compensation
• any items that your policy doesn't cover, such as undergarments
• what is needed for proof of purchase
• in what condition items must be for a refund or exchange
• how long after purchase you will give a refund or exchange
• any other terms or conditions

If your policy doesn't apply to sale merchandise, you should also clearly state this. For instance, post a sign stating "No refunds on sale items" beside the goods on sale.

Communicating clearly will also help you avoid problems with refunds and exchanges. For example:

• Don't say things you don't mean or raise unrealistic expectations.
• Don't claim something will last a lifetime if it will really only last five years with normal use.
• Make sure your staff is familiar with consumer-protection laws. For instance, they should know that the Business Practices Act prohibits exaggerated sales claims and that contracts can be cancelled for this reason.

Here are some tips on dealing with complaints about refunds and exchanges:

• Show the consumer your written policy notice.
• Make sure your staff is polite and refers any problems they can't handle to you.
• If special conditions apply to certain items, staff should inform customers at the time of purchase.
• Find out why the customer wants a refund. If product defects or exaggerated sales claims are persistent problems, you will want to take steps to keep your customers.
• If the dispute must be referred to the manufacturer, be a co-operative mediator between consumer and manufacturer.
• Be ready to negotiate. Flexibility, particularly when some issues remain in doubt, may earn you a steady customer.

We'd like to hear from you. The consumer ministry welcomes comments and suggestions on its information materials and programs. They can help us better respond to your needs in the marketplace.

Be an informed consumer

The Ontario Ministry of Consumer and Business Services has published a number of other booklets covering a wide range of consumer topics.

For further information or to obtain copies of the ministry brochures call or write to:

General Inquiry Unit
Ministry of Consumer and Business Services
250 Yonge Street
Toronto ON M5B 2N5

(416) 326-8555
1-800-268-1142
(416) 326-8566 - TTY (Telephone for the deaf)
E-mail: cbsinfo@cbs.gov.on.ca

ISBN 0-7778-9923-X