Social commerce returns policy UK: refunds and deductions

What to take away

Refunds are due within 14 days of cancellation, and you can usually withhold payment until the goods come back or the buyer proves return.
A deduction is allowed only for handling beyond what a shop would allow, and it needs the cancellation information to have been given.
Faulty goods sit under the Consumer Rights Act 2015, so a returns policy cannot replace statutory rights.
Decide the route firstchange of mind and faulty goods differ on time, cost and refund.
Name a returns address, set out who pays return postage, and record the terms in your seller contract.

Decide the route before you refund

When a buyer asks to send something back, first decide which route applies. A change of mind falls under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, usually called the Consumer Contracts Regulations 2013. A fault falls under the Consumer Rights Act 2015.

Cancellation vs faulty goods

Cancellation

Time limit: 14 days from delivery
Return cost: Buyer pays
Refund timing: Within 14 days of cancellation
Exceptions: Bespoke, perishable, hygiene

Faulty goods

Time limit: 30 days to reject
Return cost: Seller normally pays
Refund timing: Within 14 days of agreement
Exceptions: None if faulty

Buyer says	Route	First action
I changed my mind	Cancellation	Log the date and confirm the return address in writing
It arrived faulty	Faulty goods	Treat it under statutory rights, not your own policy
The seller only sells occasionally	Outside the rules	Check first whether the seller is acting as a trader

A sale through TikTok Shop, Instagram, Facebook or a live stream is a distance contract. Platform terms can add steps, but they cannot remove the statutory right to cancel, so read the platform's own terms alongside your policy.

Start the refund clock correctly

For most distance sales, the buyer has 14 days from the day they receive the goods to cancel. The refund deadline is a separate clock. After cancellation you have 14 days to refund, though you can delay until the goods are returned or the buyer supplies evidence of return.

Cancellation and refund clock

Delivery day
14-day cancellation period starts
No cancellation info given
period extends up to 12 months
Buyer cancels
you have 14 days to refund
Refund can wait
until goods returned or evidence supplied

Reimbursement must be without undue delay, and regulation 34 sets the outer limit. Refund by the same payment method unless the buyer agrees otherwise, and check how your payment gateway handles refunds, because the cancellation clock runs from delivery, not from the moment the buyer taps buy.

The refund covers the price paid and the standard delivery charge. If the buyer chose a dearer delivery option than the cheapest standard one, the extra cost need not be refunded. The buyer, for their part, must send the goods back without undue delay and no later than 14 days after telling you they are cancelling.

Deduct only for handling beyond inspection

You can deduct for diminished value if handling went beyond what a shop would allow. Inspection is allowed, but wearing or damaging the item is not. The regulations let you recover the loss up to the contract price, and the amount may be taken from the refund.

The right depends on what you told the buyer. If you did not give the required cancellation information, the cancellation period can extend by up to 12 months, and the deduction rule does not apply. Record the reason for any deduction and keep the evidence, such as dated photographs on receipt.

Handle faulty goods as a separate case

Faulty goods are separate from change of mind. The Consumer Rights Act 2015 gives a 30-day short-term right to reject in most cases, and section 22 of the Act sets that time limit. For a fault, the seller normally pays return costs.

The refund timing differs too: within 14 days of agreeing the refund, rather than 14 days from cancellation. Do not run a faulty item through the change-of-mind steps. An agreement that removes the right to reject before the time limit passes is not binding on the consumer.

Run each return the same way

A fixed routine makes refunds consistent, and it gives you a record if a buyer disputes the result. Work through the steps in order and keep the evidence beside the order.

Check the order is a consumer distance sale and not one of the stated exceptions, such as bespoke, perishable or sealed hygiene goods once opened.
Log the cancellation date and confirm the return address in writing.
Tell the buyer who pays return postage and whether a deduction may apply.
Refund within 14 days using the same payment method unless the buyer agrees otherwise.
Record the reason for any diminished value deduction and keep the evidence.

Refunds also change your tax position, so check HMRC's guidance and our VAT rules before you adjust a return in your accounts.

Write the policy lines that matter here

State the 14-day refund deadline, who pays return postage for change of mind and for faulty goods, and how a deduction is judged. Add a returns address that accepts parcels on working days.

A model cancellation form is required for distance contracts, so attach one or link to a clear version. Keep the wording accurate and dated, as the Competition and Markets Authority can act against businesses that mislead consumers about returns. Check it against the wider UK regulations before it goes live.

Common questions

How long do I have to refund a cancelled order?

You have 14 days from cancellation, though you can delay until the goods are returned or the buyer supplies evidence of return. Refund using the same payment method unless the buyer agrees otherwise.

Can I deduct money if the buyer has used the item?

You can deduct for diminished value if handling went beyond what a shop would allow. Inspection is allowed, but wearing or damaging the item is not.

Who pays return postage for a social media purchase?

For a change of mind, the buyer pays unless you told them otherwise before purchase. For faulty goods, you normally pay.

Does a social platform's returns policy replace UK law?

No. A platform policy is a commercial term, but the Consumer Contracts Regulations 2013 and the Consumer Rights Act 2015 still set the minimum. Your own policy cannot remove those rights.