Party clears air on ‘no return/refund’ policy

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SUPP Public Complaint Bureau (PCB) Chief Milton Foo during a press conference regarding the issue.

KUCHING: Consumers have the right to return and receive a refund for defective products, said SUPP Public Complaints Bureau (PCB) chief Milton Foo.

He stated this in a statement on Saturday following a complaint about a consumer being denied a replacement for a defective tablet due to the store’s “No return/refund” policy.

“On April 13, the complainant purchased a brand new tablet for RM1,799 at an authorised store, but it malfunctioned less than 10 hours after the purchase.

“When she tried to return it the next day, she was turned away and informed that the store could only accept the tablet for a trade-in value of RM800.

“She would need to pay an additional RM999 for a new tablet of the same model, making for a total of RM2,798, hence the complainant approached the PCB for help, and a formal report was filed with the Ministry of Domestic Trade and Cost of Living (KPDN),” he said.

Foo emphasised that “no return or refund” policies are only valid if two conditions are satisfied, the first of which is that the customer must be informed of the policy before the purchase is made, not after.

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Secondly, the product must be of acceptable quality and the law defines this as the product being reasonably fit for its intended purpose, and taking into account factors such as whether it is second-hand, heavily discounted, or any imperfection being pointed out before the purchase.

“Sections 24A – 24I of the Consumer Protection Act 1999 grant the court the power to strike down an unfair term in a contract, including a no return / no refund term.

“Section 46(1) further provides that consumers have the right to choose between a refund or replacement for rejected goods, and a refund must be given in cash, not in the form of other goods,” he added.

PCB reminded merchants of their duty towards consumer rights, and urged the public to check electronic devices such as laptops, tablets, and phones before leaving the store to avoid disputes later.

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