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EMBARGOED until 07:00 4 March: Refund fear could cost you almost £5,000

News Release issued by the COI News Distribution Service on 02 March 2010

Government campaign urges you to spring clean your finances by brushing up on your consumer rights

A survey released today by the Department for Business, Innovation and Skills (BIS) reveals that UK consumers on average lose £4,950 each in their lifetime on faulty goods they have failed to take back to the shops.

The research was undertaken as part of the ‘Know Your Consumer Rights’ campaign which aims to make sure that shoppers get a fair deal by knowing how and when to take goods back to the shops.

The findings also reveal that almost half of shoppers surveyed (48%)* have at least one faulty item at home they wished they had exchanged or had refunded, with almost a third (32%)* possessing up to five faulty items. And it’s male shoppers that are losing the most money. On average they fail to take back £89 worth of faulty goods a year compared to women who are losing £71 a year: a cost of £5,465 and £4,658 in a lifetime respectively.

Fear is playing a major part in stopping shoppers from returning goods and from getting a fair deal. Shoppers have the right to return faulty items, but many stores allow returns for unwanted goods even if you have just changed your mind.

Yet more than a third (36%)* of those surveyed feel nervous when they try to return an unwanted item to a store and 40% feel embarrassed (21%)* or intimidated (19%).* Londoners are the most anxious shoppers with more than half (55%)* feeling nervous when taking back an unwanted item, while consumers in the North West are the least nervous (27%).*

Other highlights from the survey of 3,000 people include:

• male and female shoppers differ in the days they prefer to take back goods, with men opting for Monday mornings and women preferring Saturday mornings to hit the high street;*
• when taking unwanted items back to a store, men feel more intimidated than women (26% to 14% respectively) and women feel more embarrassed than men (24% to 17% respectively).

Consumer Minister Kevin Brennan said:

“We want to do all we can to encourage people not to lose out financially because they don’t know their rights.

“Now is the time to brush up on your consumer rights so you can return any faulty or unwanted goods with added confidence. “

The Know Your Consumer Rights Campaign highlights the following Top Tips to consider when returning goods:

1. Returning it to the retailer - when you buy goods, your contract is with the retailer not the manufacturer and you should always go back to the retailer in the first instance to request an exchange or refund. If you have a manufacturer’s warranty you can contact them as well as the retailer. And don’t delay - act as soon as you discover the fault.

2. No receipt required - you do not need a receipt to obtain a refund for faulty goods. However, you may be required to show proof of purchase with a credit card slip, bank statement or cheque stub.

3. Check at the checkout – although you do not have the legal right to take back goods just because you’ve changed your mind, many stores do offer a ‘no questions asked’ refund or exchange policy. Check the store policy when you buy.

4. Online is fine - if you buy goods on the internet, you have the same rights as if you were shopping on the high street. In addition, you have the right to a seven day ‘cooling off’ period from the date you receive the goods, with the right to a full refund regardless of the reason for return. Remember though that this doesn’t apply if the goods were personalised for you, or are not in the same condition as when they were delivered.

To find out more about your consumer rights visit Consumer Direct at www.consumerdirect.gov.uk or call 08454 04 05 06

- Ends-

For further information contact:
Betty Nwosu / Jo Dyson
Tel: 020 7261 8849/ 020 7261 8942
Email: firstname.lastname@coi.gsi.gov.uk

Notes to editors
About the Research
The figure £4,950 was calculated by multiplying average life expectancy for both men and women (79.5 years) minus 16 years (63.5 years) with the average cost of non-refunded or exchanged goods over the course of a year (£78) Total cost: £4,953. Average life expectancy of men (77.4 years) and women (81.6 years) according to National Interim Life Table 2006-2008 - ONS research.

*The research was conducted for BIS by One Poll, who interviewed a representative sample of 3,000 adults aged 16+ from across the UK, online between 5th and 8th February 2010. One Poll abides by the Market Research Society code.

About timeframes for refunds or exchanges
The Sale of Goods Act states that if customers want to reject faulty goods, they have to do so within a reasonable timeframe. The time limit depends on what you buy and how you buy your goods, so the best advice for consumers is to act as soon as they discover the goods are faulty.

Consumers have no statutory right to a refund or exchange in the event of them changing their mind about goods, although many stores do have a policy to offer refunds or exchanges within a set number of days from purchase. It is good practice for consumers to check the store policy at time of purchase.

About Consumer Direct:
Consumer Direct is the government-funded telephone and online service offering information and advice on consumer issues. Consumer Direct is funded by the Office of Fair Trading and delivered in partnership with Local Authority Trading Standards Services.

About the Department for Business Innovation & Skills:
The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.

About the ‘Know Your Consumer Rights’ campaign:
The campaign is part of a major joint initiative launched by the Department for Business Innovation & Skills, Consumer Focus, the OFT and Consumer Direct to make sure the public know how to get a fair deal when shopping and to make sure they know what to do if things go wrong.

Further break down of survey results

Refund fear by region – most ‘nervous’ consumers
1. London – 55%
2. East Anglia – 36%
3. North East – 36%
4. South West – 36%
5. Yorkshire and the Humber – 34%

Most popular days of the week to return goods
1. Saturday – 33%
2. Monday – 28%
3. Tuesday – 10%

Outlets causing the most problems for consumers asking for refunds/exchanges for unwanted or faulty goods
1. Electrical goods outlets – 27%
2. Clothes shops – 19%
3. Music and DVD stores – 14%


For a breakdown by gender please go to the table at the link below:

http://nds.coi.gov.uk/ImageLibrary/detail.aspx?MediaDetailsID=1579


Department for Business, Innovation & Skills

The Department for Business, Innovation and Skills (BIS) is building a dynamic and competitive UK economy by: creating the conditions for business success; promoting innovation, enterprise and science; and giving everyone the skills and opportunities to succeed. To achieve this it will foster world-class universities and promote an open global economy. BIS - Investing in our future.

Contacts:

BIS Press Office
NDS.BIS@coi.gsi.gov.uk