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

Money-back guarantee for products or services in Iowa

Iowa law does not have specific requirements for offering a money-back guarantee for products or services. However, businesses that offer refunds or returns must comply with the state’s consumer protection laws.

Under Iowa law, businesses must clearly disclose their refund and return policies to consumers before the sale is made ^[2.2]. The disclosure must include the material terms and conditions of coverage offered, including the identity of the insurer, the process for filing a claim, and any additional information on the price, benefits, exclusions, conditions, or other limitations of those policies that the commissioner may, by rule, prescribe ^[2.2].

Additionally, businesses must provide a toll-free telephone number to report a claim and disclose any additional information on the price, benefits, exclusions, conditions, or other limitations of those policies that the commissioner may, by rule, prescribe ^[2.2].

If a business offers a money-back guarantee, it must clearly disclose the terms and conditions of the guarantee to consumers before the sale is made. The terms and conditions should include the circumstances under which a refund will be issued, the amount of the refund, and any time limits or other restrictions on the guarantee ^[2.2].

Portable Electronics Insurance

If you are offering portable electronics insurance in Iowa, you must be licensed as an insurance producer pursuant to chapter 522B, be issued a portable electronics insurance license pursuant to chapter 522E, or be an endorsee who is in compliance with section 522E.6 ^[2.3].

A portable electronics vendor applying for a portable electronics insurance license under chapter 522E shall submit a written application for licensure, a certificate by the insurer that is to be named in the portable electronics insurance license, and an application fee of the lesser of fifty dollars per each endorsee at a location of the vendor or five hundred dollars per location valid for a three-year period and, for each three-year period thereafter, a renewal fee in the same amount ^[2.5].

Conclusion

Iowa law does not have specific requirements for offering a money-back guarantee for products or services. However, businesses that offer refunds or returns must comply with the state’s consumer protection laws. Businesses must clearly disclose their refund and return policies to consumers before the sale is made, including the terms and conditions of any money-back guarantee.

If you are offering portable electronics insurance in Iowa, you must be licensed as an insurance producer pursuant to chapter 522B, be issued a portable electronics insurance license pursuant to chapter 522E, or be an endorsee who is in compliance with section 522E.6.

Source(s):

• [2.2] Requirements at time of sale.
• [2.3] Licensure required.
• [2.5] Application and fees.

Jurisdiction

Iowa

• General