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March 31, 2015

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Regulation revision clarifies rules on returned goods

A revised Shanghai Consumer Rights Protection Regulation took effect on March 15. The new regulation gives more detail on returning goods within 7 days without a reason and improves consumer rights protection accordingly.

1. Makes clear the duty of disclosure by business operators and confirmation procedure by consumers in advance

In purchasing activities without visiting a shop, including online shopping, business operators should inform consumers by notable means and set up reminder programs, adopt measures or technological means for consumers to confirm.

After confirmation by consumers before payment, returning goods within 7 days without a reason should not be applicable, according to the new regulation.

In practice, all three elements should be available to implement the rule: buyer, goods and confirmation. If a business operator fails to inform consumers by notable means, or fails to get confirmation beforehand, then the operator can’t refuse the request of returning goods within 7 days without reason.

2. Makes clear the basic principle after returning the goods

The rule stipulates as follows: “Business operator should refund consumer within 7 days after receiving the returned goods, and consumers should return the prizes, presents or equivalent money for the consumption. The logistics cost of returning goods should be borne by consumers. If consumer and business operator have arrangements beforehand, proceed according to the arrangement.”

3. Makes clear that the standard of completeness of returned goods should be without damage or stain.

According to the regulation: “After being sealing off packages, goods are considered complete after being checked and tested by consumer without damage or stain. In other words, the goods can be sealed off its package for check and test, and it is considered complete so long as it is clean and in original form. It is illegal for business operator to refuse return of goods without package.”

4. Stresses the standard for goods for which the “being returned within 7 days without a reason” rule does not apply.

Goods where the rule does not apply should be similar to the four categories of goods stipulated in the regulation. The details of goods are not mentioned in the regulation due to the diversity of goods. It should cover food, healthcare products, cosmetics and underwear.




 

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