Can I offer a money-back guarantee for my product or service in Arizona? What are the requirements?

Here are the requirements for offering a money-back guarantee for your product or service in Arizona:

Money-back Guarantee Requirements in Arizona

Arizona law does not have specific requirements for offering a money-back guarantee. However, if you are offering a service contract, you must comply with the requirements set forth in AZRS 20-1095.01, AZRS 20-1095.03, and AZRS 20-1095.06.

Under AZRS 20-1095.01, a service company may not offer or issue a service contract unless the service company has qualified for and been issued a permit by the director. The director shall adopt rules that provide for the application for permit, renewal procedures, fees, refund of the unearned portion of the contract price, and approval of forms.

Under AZRS 20-1095.03, the director shall not issue a permit to a service company unless the applicant is solvent and organized under the laws of this state or another state, district, territory, or possession of the United States. The applicant must furnish proof as necessary to the director that the directors and management of the service company are competent and are capable of successfully managing the service company’s affairs in compliance with law. The applicant must also file a surety bond or an alternative to a surety bond as required by section 20-1095.04 or be insured by a mechanical reimbursement insurance policy.

Under AZRS 20-1095.06, each service company holding a service company permit shall submit all service contract forms to the director for approval at least thirty days before the proposed effective date of the form. A form may not be used until it is approved by the director or has been on file with the director for more than thirty days. The director may not approve a service contract if it may be canceled or voided due to acts or omissions of the service company or its assignees or subcontractors for their failure to provide correct information or their failure to perform the services or repairs provided in a timely, competent and workmanlike manner.

Conclusion

In summary, Arizona law does not have specific requirements for offering a money-back guarantee. However, if you are offering a service contract, you must comply with the requirements set forth in AZRS 20-1095.01, AZRS 20-1095.03, and AZRS 20-1095.06.

Jurisdiction

Arizona

• General