Latest news with #ConsumerContractsRegulations2013
Scottish Sun
07-07-2025
- Business
- Scottish Sun
Major retailers including Home Bargains and The Range misleading shoppers about their refund rights – are you due cash?
We reveal what your return rights are, so you don't miss out on cash SHOP TO IT Major retailers including Home Bargains and The Range misleading shoppers about their refund rights – are you due cash? MAJOR retailers including Home Bargains and The Range are reportedly misleading shoppers about their refund rights. Findings from Martin Lewis's MoneySavingExpert found that over 30 shops and cafés' online return policies suggest consumers have fewer rights than what the law entitles them to. Advertisement 1 Research by Martin Lewis's MSE found that consumers could be misled Credit: Getty Under the Consumer Contracts Regulations 2013, customers always have 14 days after the day of receiving a product to notify the retailer that they wish to make a return. Shoppers then have a further 14 days after that to send the product back. But it is important to note that this does not apply to certain goods such as perishable or personalised items, or sealed audio, video or computer software which has since been opened. These can only be returned if they're faulty, or if the retailer's policy allows it. Advertisement Retailers must inform customers of their legal return rights before they make a purchase. If shoppers are not informed of their return rights, for example not displaying information on the website, the window for a return is extended to 12 months. These statutory rights overrule a retailer's individual policy. For example, Home Bargains' return right states: "You can return your order, or part of it, for any reason within the specified period of time after delivery. Via EVRi/Courier: 14 Days. To Store: 28 Day". Advertisement MSE said this breaches shoppers rights as law states that online shoppers have 14 days to change their mind, and a further 14 days to return the item. Meanwhile, The Range also states that customers only have two weeks to return, when they should have up to 28 days. River Island confirms which 33 stores are shutting as a further 70 at risk in huge shake-up – is your local going? Meanwhile, Selfridges also claimed that customers only have 14 days to return products. Monsoon was also found to have misled customers, but told The Sun it has since updated the language on its website. Advertisement They said: 'We read Martin Lewis's comments this morning and have taken immediate steps to update the wording on our website to make it clear that our returns policy complies fully with our customers' statutory rights." All mentioned parties have been approached for comment. Keeping this in mind the next time you shop online can ensure you don't miss out on cash you are owed back as part of your return. Martin Lewis, MSE founder told the outlet: "It's important for people to know that as a legal minimum… while you can only return goods bought in-store if they're faulty… buy something online and you have a no-fault right of return, provided it is not perishable or personalised. Advertisement "You have up to 14 days after delivery in which to tell the retailer you're sending an item back, and 14 days after you tell them to return it."
Fashion United
16-05-2025
- Business
- Fashion United
Returns fraud is costing UK retailers 1.3 billion pounds a year: Here's how to fight back in 2025
Returns fraud isn't new. But for UK retailers in 2025, it has reached a level of urgency that can no longer be ignored. In a recent Loop survey, nearly two-thirds (64 percent) of UK-based brands said rising returns fraud was the trend having the biggest financial impact on their business. From wardrobing (wearing and returning) to serial bracketing and exploiting lenient refund policies, brands are being hit from all angles. Written by John-David Klausner, GM International, Loop The data confirms it's not just perception. According to Retail Economics, UK retailers are now losing 1.3 billion pounds annually to returns fraud. The British Retail Consortium has also flagged fraudulent returns as a key concern for its members, particularly in apparel and footwear, where abuse rates can reach up to 15 percent of total returns. Add to that a tough economic climate and ever-higher consumer expectations, and you have a perfect storm. But while UK law strongly protects consumer rights, retailers still have meaningful tools at their disposal to reduce abuse—without alienating honest customers or running afoul of regulations. Here's how leading brands are responding. 1. Work within the law. Don't get steamrolled by it The UK has some of the most consumer-friendly legislation in the world. Under the Consumer Contracts Regulations 2013, customers can cancel most online purchases within 14 days of receipt and have another 14 days to return them—giving them a minimum 28-day no-questions-asked return window. That law exists for good reason. But some customers exploit it to 'try before they buy,' wear items and return them, or bracket multiple sizes and styles with no intention of keeping most. Legally, retailers can't refuse those returns outright. But you can inspect returned goods and deduct value from refunds if items show signs of wear or misuse. The key is having clearly defined policies and fair, consistent enforcement, especially when the refund is partial. 2. Scrutinise post-window returns with structure and fairness The Consumer Rights Act 2015 gives consumers a 30-day window to reject faulty goods for a full refund. After that, they're entitled to a repair or replacement within six months—and in some cases, up to six years. Many brands are seeing a rise in fraudulent fault claims, especially after the initial return window has closed. To counter this, retailers are tightening how they assess claims: Requiring video evidence of damage or defect Using serial number verification to confirm authenticity Asking customers to return the item before processing a refund This approach prevents opportunistic abuse while still supporting genuine claims—helping teams make better decisions, faster. 3. Leverage AI to detect risky behaviour - ethically and compliantly Machine learning has transformed returns fraud detection. Platforms like Loop can flag suspicious behaviours, such as unusually high-value return volumes, repeated abuse of refund policies, or inconsistent return reasons. This allows retailers to automatically route those transactions for manual review, enabling them to take action before losses mount. However, merchants must be careful with how they use customer data. Under the UK GDPR and Data Protection Act 2018, brands are legally required to: Be transparent about what data they collect and why Provide customers with access to their data Offer a clear appeals process if returns are denied based on fraud detection Used correctly, AI is a valuable fraud deterrent. But customers must retain control over how their data is used and have the right to challenge decisions when appropriate. 4. Build tiered policies that respond to different risk levels A common pitfall is treating all returns equally. In 2025, more retailers are applying tiered controls based on the risk profile of the transaction or customer. Examples include: Requiring manual approval for returns over a certain value Offering instant refunds only to customers with low return rates Limiting the number of returns allowed per customer per year Setting stricter policies for high-return-rate items, like seasonal fashion or luxury goods This segmentation allows retailers to preserve a great experience for the majority of customers while managing the small minority responsible for most abuse. 5. Invest in proactive insight, not reactive fixes Returns fraud isn't static. The methods used by abusive customers shift constantly and so must your defenses. Retailers with best-in-class operations regularly analyse return data to identify emerging abuse patterns. For example, some Loop clients have discovered that certain SKUs or geographic regions are disproportionately linked to high rates of wardrobing, prompting targeted policy updates or inspection processes. The goal is to move from reacting to fraud after it happens, to designing policies that anticipate and prevent it. That mindset shift, towards continuous improvement, is what separates brands that merely cope from those that lead. A new era of returns management Returns used to be seen as a cost of doing business. In 2025, they're increasingly a source of competitive differentiation. Brands that strike the right balance between generosity and accountability will not only protect their margins but also earn trust from customers who value fairness and transparency. It's true that the UK's consumer laws favour the buyer. But that doesn't mean retailers are powerless. On the contrary, by implementing smarter technology, setting thoughtful policies, and investing in continuous returns optimisation, brands can regain control. Fraud may be rising… but so is the capability to fight back, ethically and effectively. About the guest contributor Loop is the industry's leading commerce operations platform that empowers Shopify brands to streamline their entire customer journey, reduce friction, and maximize revenue. Its end-to-end approach integrates capabilities that help brands simplify their operations and delight customers, from initial orders to returns and exchanges. Offering features like Workflows, Instant Exchanges, Offset, and AI-powered tracking and visibility, Loop reduces costs, increases customer lifetime value, and retains revenue for more than 5,000 of the world's most-loved Shopify brands. Loop has processed over 55 million returns and counting, and has helped merchants retain more than $2 billion in revenue over the past five years while delivering exceptional customer experiences.
