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

Money-Back Guarantee Requirements in Missouri

Missouri law does not have specific requirements for offering a money-back guarantee for products or services. However, businesses that offer such guarantees must comply with general consumer protection laws in the state.

Under Missouri law, businesses must not engage in any deceptive or unfair practices that mislead consumers. This includes making false or misleading statements about the product or service being offered, including any guarantees or warranties [1.1].

Additionally, businesses must comply with the terms of any guarantee or warranty offered. If a business fails to honor its guarantee or warranty, it may be subject to legal action by consumers [1.1].

It is recommended that businesses offering money-back guarantees clearly state the terms and conditions of the guarantee in writing, including any limitations or exclusions. This can help avoid misunderstandings and disputes with consumers [1.1].

Registration of Service Contract Providers

If you are a service contract provider, you must register with the Missouri Department of Commerce and Insurance prior to issuing any service contracts and annually thereafter between January 1 and February 1 of each year by completing and filing an application for service contract provider registration. The application must be accompanied by payment of a registration fee of three hundred dollars ($300) [2.3].

Faithful Performance of a Service Contract Provider’s Obligations

If you are a service contract provider, you are responsible for maintaining proof of your assurances of faithful performance and your continuing compliance with the requirements of section 385.302, RSMo, with the director. Any reimbursement insurance policies used to assure the faithful performance of your obligations to your contract holders must be issued by an insurance company authorized, registered, or otherwise permitted to transact liability insurance in Missouri, or a surplus lines insurer authorized pursuant to the laws of Missouri and which insurer meets the surplus requirements of section 385.302.4(4), RSMo. The policy must assure the satisfaction of all obligations and liabilities of the provider under the terms of service contracts issued while the reimbursement insurance policy is in effect in the event of nonperformance by the provider. No policy with any provision imposing a deductible or retention payable by the policyholder or any claimant under the policy will satisfy this requirement. The policy must also contain a provision requiring the insurer issuing such policy to provide the director with at least sixty (60) days prior notice of insurer’s termination of such policy by delivering notice to the director [2.1].

Conclusion

Missouri law does not have specific requirements for offering a money-back guarantee for products or services. However, businesses that offer such guarantees must comply with general consumer protection laws in the state. If you are a service contract provider, you must register with the Missouri Department of Commerce and Insurance prior to issuing any service contracts and annually thereafter between January 1 and February 1 of each year. Additionally, if you are a service contract provider, you must maintain proof of your assurances of faithful performance and your continuing compliance with the requirements of section 385.302, RSMo, with the director [1.1][2.1][2.3].

Source(s):
Jurisdiction

Missouri