SHOPPING ALERT

CONSUMER ALERT: HAWAIʻI SHOPPERS URGED TO KNOW THEIR REFUND AND EXCHANGE RIGHTS THIS HOLIDAY SEASON

With Black Friday and Cyber Monday approaching, the state of Hawaiʻi Office of Consumer Protection (OCP) reminds consumers to review refund and exchange policies before making holiday purchases — and reminds businesses of their legal obligations under Hawaii’s refund statute.

“Understanding your rights before you buy can help prevent disputes and protect your wallet during the busy shopping season,” said Mana Moriarty, executive director of the OCP.

Key Consumer Rights

Under Hawaiʻi law, merchants with a specific return policy must post a clear and conspicuous sign describing the policy, including any limits on refunds, credits, or exchanges, as well as any time limits or exclusions. A ‘conspicuous sign’ is a sign displayed in a spot where customers can easily see it before completing a purchase.

If no such sign is posted, the merchant must accept returns and provide a refund, merchandise credit, or exchange, as required by law.

Refund requirements by payment type include:

Cash purchases: A cash refund must be given at the time of return. Refunds over $25 may be issued by check within 10 days.
Check purchases: Refunds must be paid in cash or by check within 10 days. Merchants may wait up to 10 days after the check clears.
Credit card purchases: Merchants must issue a credit to the card within five banking business days, or may provide cash immediately or a check within 10 days.
Merchant credit accounts: Refunds must be credited to the account at the time of return.

Merchandise credits: Credits must be valid for at least two years. If no exchange is made within 30 days, a cash refund is required unless a conspicuous sign states otherwise.

Exchanges:

For size or color exchanges, merchants must make the exchange regardless of the original price, subject to any price difference.
For exchanges for different goods, consumers are entitled to a refund or merchandise credit if the replacement costs less.

Proof of Purchase: Merchants may require proof of purchase, such as a sales slip, receipt, or credit card slip, as a precondition for allowing returns.

Ancillary Charges: Merchants may deduct repacking, transportation, restocking, or administrative fees only if those charges were disclosed before purchase. Refund limits don’t apply to items that were already damaged or defective, unless the issue was disclosed in writing. Consumers should keep receipts, return items within 60 days and keep products in original condition. Merchants may refuse returns after 60 days or if the item is used, damaged, altered, or not resalable.

Requirements for Businesses

Businesses may adopt refund limitations only if they post a conspicuous sign visible to customers before purchase. Acceptable posted policies include:

Refunds only;
Refunds or merchandise credit only;
Exchanges or merchandise credit only; or
No refunds, merchandise credits, or exchanges (“All sales final”)

Additional posting requirements apply if:

The return period is shorter than 60 days;
Certain categories of goods are excluded from the return policy; or
The goods are custom or specially ordered. For special orders, merchants must post signs or provide written notice acknowledged by the purchaser.

Merchants who fail to post the required signs must follow the statutory refund and exchange procedures. Any act or policy that compromises a purchaser’s rights may constitute an unfair or deceptive act or practice under HRS § 480-2.

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