ARE "NO REFUND, NO EXCHANGE" POLICIES LEGAL IN TRINIDAD AND TOBAGO?

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​We've all noticed those "NO REFUND, NO EXCHANGE" signs in some stores in T&T. Or, we've seen it printed on the receipts we've received after we've made a purchase. But have you ever wondered if these policies are legal? 

Despite seeing these policies from time to time, "NO REFUND, NO EXCHANGE" policies are actually ILLEGAL in T&T.

In the year 2000, the Minister of Trade and Industry and Consumer Affairs made an Order under section 16 of the Consumer Protection and Safety Act called "the Adverse Trade Practices Order 2000"

Under the Order, it is an offence for a person who supplies or offers goods or services to consumers, in the course of business, to display on business premises, notices containing statements which are invalid by law. Examples of such statements are:

These statements cannot be displayed or published in notices, advertisements, receipts, bills or other documents, which are given to consumers.

Number 3 and 4 in the Order states:

"3. A person shall not, in the course of a business, display, at any place where consumer transactions are effected, a notice containing statements which are invalid by virtue of-
(a) section 9 of the Unfair Contract Terms Act, 1985; or
(b) any other written law.

4. A person shall not in the course of a business-
(a) display;
(b) publish, or cause to be published;
(c) supply; or
(d) furnish,
at any place where consumer transactions are effected, any advertisement, receipts, bills or other documents containing, or any goods bearing, or goods in a container bearing, any statement which is invalid by virtue of the Unfair Contract Terms Act, 1985 or any other written law."

Any person who contravenes a prohibition imposed by the Order or does not comply with a requirement imposed by this Order is liable:

• on summary conviction (before a Magistrate) to a fine of $5000TT and imprisonment for four (4) months.
• on conviction on indictment (before a Judge and Jury), to a fine of $10,000TT and to imprisonment for two (2) years.​

Under the Unfair Contract Terms Act:

• Contract terms that deny consumers the right to full compensation where goods are misdescribed or defective are void and unenforceable.
• Contract terms that remove or negate liability to the seller for sale goods or say that sale goods cannot be returned are void and unenforceable.​​​

If you believe you have been the victim of an unfair or deceptive trade practice, you can contact the Consumer Affairs Division of the Ministry of Trade and Industry for assistance in rectifying your issue. ​​

Important Notice: This post does not constitute legal advice. Always consult with an attorney on any legal problem or issue.

​This website is managed by AURORA Chambers; a law practice in Trinidad and Tobago.

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