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

Here is the response to your query:

Money-back Guarantee in Hawaii

If you are offering a money-back guarantee for your product or service in Hawaii, you must comply with the state’s laws and regulations regarding returns and refunds.

According to HIRS 481B-5.5, all merchants in Hawaii are required to accept the return of goods for refund, merchandise credit, or exchange, giving purchasers rights that are no less than those provided in this section. Merchants may choose to post a conspicuous sign notifying purchasers of any one of the following limitations: refunds only, refunds or merchandise credit only, exchanges or merchandise credit only, or no refunds, merchandise credits, or exchanges. Merchants may also place specific limitations on the policy adopted by posting a conspicuous sign notifying the purchasers of any limitations allowed by subsections (c), (d), (e), and (f).

If you are offering a money-back guarantee, you must clearly state the terms and conditions of the guarantee in your service contract. The service contract must state that the contract holder may return the contract within thirty days of the date that the contract was mailed to the contract holder, twenty days of the date the contract was delivered to the contract holder if the contract was delivered at the time of sale, or a longer time period as specified in the service contract. Upon return of the service contract to the provider within the applicable time period, and if no claim has been made under the service contract prior to its return to the provider, the service contract shall be void, and the provider shall refund to, or credit the account of, the contract holder with the full purchase price of the service contract. A ten percent penalty per month shall be added to a refund that is not paid or credited within forty-five days after the return of the service contract to the provider.

Conclusion

In summary, you can offer a money-back guarantee for your product or service in Hawaii, but you must comply with the state’s laws and regulations regarding returns and refunds. You must clearly state the terms and conditions of the guarantee in your service contract, and you must accept returns for refund, merchandise credit, or exchange, giving purchasers rights that are no less than those provided in HIRS 481B-5.5.

Jurisdiction

Hawaii

• General