Do You Need a Refund Policy? The Rules for EU & UK Online Sellers (2026)
Aug 24, 2026 · 7 min read · ← All guides
Short answer: if you sell anything online to consumers in the EU or UK, you need refund terms published before checkout — not because a "refund policy" is itself a legal requirement, but because consumer law forces you to disclose withdrawal rights upfront, and the penalty for skipping it is severe.
Why it's effectively mandatory
The EU Consumer Rights Directive (2011/83/EU) requires every distance seller to inform the consumer, before they buy, of:
- The existence of a 14-day right of withdrawal
- The conditions, time limits and procedures for exercising it
- The model withdrawal form (for goods)
- Who pays for return shipping, and your refund process
This information must be given clearly and on a durable medium. A policy page linked from your checkout satisfies this. No policy at all does not.
The 12-month trap: Under Article 13, if you fail to inform the customer about the right of withdrawal, the 14-day window doesn't simply vanish — it extends. The customer can withdraw for up to 12 months plus 14 days after delivery, with a full refund including standard shipping. Sellers who hide their refund terms often think they've protected themselves. They've done the opposite.
What about the UK?
The UK kept the regime after Brexit via the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 ("CCR 2013"). The mechanics are near-identical: 14-day cancellation rights for distance sales, pre-contract information duties, and an extended cancellation period when you omit the information. If you sell into both markets, one well-written policy covering both regimes is the practical answer.
Digital products and SaaS
The withdrawal right applies to digital content too — but there's an exception you can use:
- If the consumer gives express prior consent to immediate delivery and acknowledges that delivery means losing the withdrawal right, the right disappears.
- That consent must happen at checkout, not buried in your ToS.
- Statutory rights for faulty or misdescribed goods always remain, regardless.
For subscriptions and SaaS, a common balanced approach is a voluntary 14-day money-back guarantee on the first payment — it converts better than fighting the question, and it costs little since churn-prone customers would leave anyway.
What a compliant policy must contain
| Element | Required by |
|---|
| Statement of the 14-day withdrawal right and when the clock starts | CRD Art. 6(1)(g) |
| How to exercise it (addressed format, e.g. email or form) | CRD Art. 6(1)(g) |
| Model cancellation form availability | CRD Art. 6(1)(h) |
| Who pays return shipping | CRD Art. 13 / practice |
| Refund timeline (max 14 days from receiving goods back or proof of return) | CRD Art. 13 |
| Digital-goods consent language (if applicable) | CRD Art. 16(m) |
| Exclusions: sealed hygiene items, made-to-order goods, perishables | CRD Art. 38 |
Things you can't do
- No blanket restocking fees on statutory consumer returns — you can only deduct diminished value beyond normal inspection.
- No "no refunds ever" clauses. They're void against mandatory consumer rights and can attract enforcement attention.
- No requiring return shipping methods that cost more than ordinary postal service.
Selling outside the EU/UK
- US: no federal cooling-off rule for ordinary online sales; state laws vary (and some marketplaces impose their own). FTC Mail Order Rule requires shipping within stated time or offering a refund. A clear policy still reduces chargebacks — which is the real cost driver.
- Australia/NZ: consumer guarantees replace withdrawal rights, but refunds for faulty goods are mandatory regardless of your policy.
The practical checklist
- Publish a refund policy that covers both EU CRD and UK CCR 2013 if you sell to both.
- Link it visibly at checkout — not just in the footer.
- If you sell digital goods, add the express-consent checkbox before payment.
- Match your ToS and checkout copy to the same windows and conditions. Contradictions lose disputes.
- State who pays return shipping explicitly.
You can generate a policy covering all of this in about two minutes:
Generate a free refund & return policy →
This guide is general information, not legal advice. For specific situations, consult a qualified lawyer in your jurisdiction.