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

Money-back Guarantee Requirements in Delaware

Delaware law does not have specific requirements for offering a money-back guarantee for products or services. However, businesses must comply with general consumer protection laws and regulations.

Written Agreement and Disclosures

If a business offers a money-back guarantee, it must clearly and conspicuously disclose the terms of the guarantee in the written agreement provided to the buyer [1.1]. The written agreement must also include the name, address, and telephone number of the seller and the buyer, the date of the contract, the price of the product or service, and any service charges associated with the purchase [1.1].

Refund of Service Charge

If a service charge has been precomputed and taken in advance, the holder must refund the unearned portion of the precomputed service charge if the buyer pre-pays the entire indebtedness [6.1]. The refund must be in an amount not less than the amount that would be refunded if the unearned precomputed service charge were calculated in accordance with the actuarial method [6.1].

Exceptions to Repurchase Requirements

Delaware law provides exceptions to repurchase requirements for certain types of inventory [2.1].

Conclusion

In summary, Delaware law does not have specific requirements for offering a money-back guarantee. However, businesses must comply with general consumer protection laws and regulations, including providing clear and conspicuous disclosures in the written agreement and refunding the unearned portion of any precomputed service charge. Additionally, there are exceptions to repurchase requirements for certain types of inventory.

Source(s):
Jurisdiction

Delaware