"Money Back Guarantee" Means Exactly That

If a product is advertised as having a “satisfaction” or “money back” guarantee, then that “constitutes an offer of a full refund for any reason.” 16 C.F.R.

239.3 says:

(a) A seller or manufacturer should use the terms “Satisfaction Guarantee,” “Money Back Guarantee,” “Free Trial Offer,” or similar representations in advertising only if the seller or manufacturer, as the case may be, refunds the full purchase price of the advertised product at the purchaser’s request.

(b) An advertisement that mentions a “Satisfaction Guarantee” or a similar representation should disclose, with such clarity and prominence as will be noticed and understood by prospective purchasers, any material limitations or conditions that apply to the “Satisfaction Guarantee” or similar representation.

Often, of course, the refund is contingent on the product being returned. Something to bookmark for the future in case you need to say, “but it’s mandated by federal statute!”. — BEN POPKEN

16CFR239.3 [Code of Federal Regulations] via A Businessperson’s Guide to Federal Warranty Law [FTC.gov]


Edit Your Comment

  1. Coder4Life says:

    Can I please get contact info for HSBC customer service executive team…

  2. Hexum2600 says:

    I’m using it..

    “Seriously, Under the code of Federal Regulations Title XVI section 239.3 you must refund the purchase price of this product even though I used 90%! I’m dissatisfied!”

  3. danieldavis says:

    So, if I understand this correctly, you still have to return anything left of the product, right?

  4. Pelagius says:

    Please take note of this, especially if you are turning in a $65 Million pair of pants to the dry cleaners.

  5. Cap'n Jack says:

    A statue mandates this? Is it the big one in D.C. of Abe Lincoln?

  6. Charybdis says:

    Damnit Shadgenki, that was my exact joke!

    Except that I had him coming to life and beating people into a bloody pulp for failing to adhere to the law.

  7. ArtlessDodger says:

    What about goods that include “money back guarantee” minus shipping and handling? Is it legal to charge someone for shipping (both to and from a shipping center) AND the handling fee if the product was faulty, ugly, not useful, etc… to begin with?