Leading UK retailers are routinely breaking the law by failing to properly refund customers for returned goods, a damning new investigation by consumer champion Which? has revealed.
The study, which tracked the experiences of 12 mystery shoppers across 17 major online retailers, found that some of the country’s biggest shops are failing to reimburse customers for the cost of their original delivery fees—a legal requirement under the Consumer Contracts Regulations 2013. In more extreme cases, some retailers failed to refund the cost of the returned items themselves.
During June and July, mystery shoppers purchased more than 200 items to test the transparency and efficiency of the returns process. While shoppers are legally entitled to cancel an order within 14 days and receive a full refund, including the standard delivery fee, the investigation uncovered a pattern of non-compliance.
At the bottom of the rankings was clothing retailer Matalan, where the vast majority of mystery shoppers experienced significant issues. Out of 12 returns made to the store, only seven shoppers were refunded for the cost of the product. Furthermore, not a single shopper received a refund for their original delivery fee. In one instance, a shopper was left £9.98 out of pocket after purchasing a £3.99 item; they paid £3 for delivery and a further £2.99 to return the goods, yet received no refund at all.
Other major retailers were also caught failing to adhere to the law. Both River Island and Sports Direct failed to refund the original delivery fee in every test case conducted by Which?. Pets at Home also struggled, successfully refunding only six of the 12 shoppers for the products they returned.
Reena Sewraz, retail editor at Which?, condemned the findings, stating: “Returning an online purchase shouldn’t be a battle to get your money back. Yet leading retailers are breaking the law by failing to give shoppers the refunds they are entitled to.” She urged firms to take responsibility for their systems, adding that consumers should not be left to “foot the bill for retailers’ mistakes.”
In contrast, John Lewis emerged as the top performer. The retailer was praised for its clear communication throughout the returns process, becoming the first company to receive Which?’s new “recommended provider” status for returns.
In response to the report, a spokesperson for Sports Direct argued they could not comment on the claims, noting that they had requested order details from Which? to investigate the specific transactions but were refused. Pets at Home stated that they regularly review their policies to ensure customers have access to clear guidance and encouraged anyone with concerns to contact them directly.
The investigation highlights a growing concern regarding the compliance of online retailers with consumer protection laws, leaving many shoppers at risk of losing money when attempting to return unwanted items.
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