Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

Money-Back Guarantee Requirements in Arkansas

To offer a money-back guarantee for a product or service in Arkansas, there are no specific laws or regulations that prohibit it. However, it is recommended that the terms and conditions of the guarantee be clearly stated in writing and provided to the consumer before the purchase is made [1.1].

According to ARCO 4-95-106, any agreement by a consumer to obtain a consumer product from a product promoter is not enforceable unless it is in writing, it contains the signature of the consumer, and it contains specific information, including a detailed description of the consumer product. Additionally, the disclosure statement “YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONTRACT AND RETURN IT TO THE SELLER” must be included in a type size of a minimum of 12-points, in a space immediately preceding the space allotted for the consumer’s signature [1.1].

It is also important to note that the Arkansas Consumer Protection Division of the Office of the Attorney General is responsible for enforcing consumer protection laws in the state. If a consumer believes that a product or service does not meet the terms of a money-back guarantee, they may file a complaint with the Consumer Protection Division [1.1].

Surety Bond Requirements

If you are a money transmitter licensee in Arkansas, you are required to maintain a surety bond acceptable to the commissioner in the amount of $10,000 or more, depending on your annualized money transmissions in Arkansas [2.1]. The surety bond must be increased by March 31 if an increase is required. Failure to maintain the proper surety bond amount shall be grounds for discipline under the Act [2.1].

License Requirements

For purposes of the Arkansas Code, a person engages in the business of money transmission if the person conducts money transmission for persons located in this state or conducts money transmission from a physical location in this state for persons located outside this state and receives compensation or expects to receive compensation, directly or indirectly, for conducting the transmissions. A person engaging in the business of money transmission shall be presumed to solicit, advertise, or hold itself out as a person that engages in the business of money transmission in this state if the person fails to provide a disclaimer listing either the states in which it is licensed or the states in which it is not licensed [2.2].

Conclusion

To summarize, there are no specific requirements for offering a money-back guarantee in Arkansas, but it is recommended that the terms and conditions be clearly stated in writing and provided to the consumer before the purchase is made. Money transmitter licensees in Arkansas are required to maintain a surety bond acceptable to the commissioner, and persons engaging in the business of money transmission must provide a disclaimer listing either the states in which they are licensed or the states in which they are not licensed. The Arkansas Consumer Protection Division of the Office of the Attorney General is responsible for enforcing consumer protection laws in the state [1.1][2.1][2.2].

Source(s):
Jurisdiction

Arkansas