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Can I offer a money-back guarantee for my product or service in South Dakota? What are the requirements?
Money-back guarantee for products or services in South Dakota
If you are offering a money-back guarantee for your product or service in South Dakota, there are no specific state laws or regulations that govern this practice. However, you should ensure that your guarantee complies with general contract law principles and is not misleading or deceptive to consumers.
According to SDCL 37-24-6, it is unlawful for any person to engage in any deceptive act or practice in the conduct of any trade or commerce. Therefore, any money-back guarantee offered must be truthful and not misleading to consumers.
Additionally, if you are selling products or services online, you must comply with South Dakota’s sales and use tax laws. For internet purchases made pursuant to SDCL 10-63, a notice on the check-out page fulfills both the website and invoice notice requirements simultaneously. The notice shall be sufficient if the noncollecting retailer provides a prominent linking notice that reads as follows: “See important South Dakota sales and use tax information regarding the tax you may owe directly to the State of South Dakota.” [3.1]
If you are required to provide a similar notice for another state in addition to South Dakota, the retailer may provide a consolidated notice so long as the notice includes the information contained in § 10-63-2, specifically references South Dakota, and meets the placement requirements of this section. [3.2]
In conclusion, while there are no specific requirements for offering a money-back guarantee in South Dakota, you should ensure that your guarantee complies with general contract law principles and is not misleading or deceptive to consumers. Additionally, if you are selling products or services online, you must comply with South Dakota’s sales and use tax laws.
Source(s):
- [3.1] Notice on check-out page for internet purchase fulfills requirements–Consolidated notice.
- [3.2] Displays to be accompanied by notice of tax due.
Jurisdiction
South Dakota