Sec. 02.01.05.02. Findings and Purpose

A. Findings. The Division of Consumer Protection of the Office of the Attorney General and the Consumer Council find that the refund and exchange policies of merchants, when left unstated, place the consumer at a disadvantage, particularly with merchants who vary refund and exchange policies with different consumers or who change policies without notice. Merchants' failure to communicate policies on refunds and exchanges, be it a policy of no refunds, cash refunds, or credit for returned merchandise, is a practice which is unfair and deceptive.

B. Purpose. The purpose of these regulations is to require that a policy, a change in policy, or special sales promotion policies (such as final sale, fire sale, sale on "as is" merchandise, no returns, etc.), be clearly communicated to the consumer in all retail sales and to declare it to be an unfair and deceptive practice to fail to communicate the merchants' policies.