Are Online Return Policies in line with Consumer Rights?

In January, many consumers seek to return unwanted gifts received over the holidays. The home delivery specialist ParcelHero estimates that this could be as high as 1.51 billion pounds worth of unwanted gifts being returned this year.

To avoid surprises, consumers should be aware of their statutory rights to return, but also be mindful of companies’ unique return policies, which may halt their plans for a swift and seamless return.

The individual cost of return – ASOS Case Study on price transparency

From 6 January 2026, ASOS’s return policy will be based on the consumer’s return history to determine the price of the current-day return. Specifically, if an ASOS customer has historically returned over 70% of the total value of their past orders, they shall be eligible for a free return. However, this is conditional on them returning under £40 worth of the items from the order.

With the Competition and Markets Authority’s (CMA) recent push for fairer commercial practices, it should be considered whether this policy meets the standard required to be compliant. As part of the CMA’s attempt to increase consumers’ trust in pricing, and for them to make better informed decisions, a larger focus has been put on companies to provide price transparency. Specifically, the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) demands that prices are not misleading, and wherever possible, consumers should be presented with the total price of the product at the outset.

To assist companies with ensuring compliance, the CMA released guidance on the price transparency provisions within the DMCC Act. The key message within this guidance is that companies must show the total price of a product upfront.

On the face of it, ASOS’s policy could be seen to be in alignment with guidance for the following reasons:

1. Within the ASOS app, consumers can see their individual return rate. This promotes consumers having larger visibility and control over their accounts as they will better understand the reason for their personalised return rate. Therefore, helping them make an informed decision when it comes to purchasing and undertaking a return.
2. The personal return rate shall be updated each time a purchase is made. Thus, consumers can remain accurately informed of their rate.
3. ASOS has provided guidance to help consumers understand the changes. 
4. New tools recently launched by ASOS include clearer sizing details, product videos, and a Fit Assistant to help consumers choose the right size from the beginning, which may reduce returns overall.

Consumer’s overarching statutory rights

It is important to highlight that companies’ return policies cannot exclude consumers’ statutory rights. Under the Consumer Rights Act 2015 (CRA), if an item purchased is faulty, of poor quality, or not as described, then a consumer cannot be charged for returning said item. Examples of when the CRA can be utilised are set out below.

Faulty items

If the delivered item has a faulty zip or the item is completely different from that described in the size guide, the consumer shall be protected by the CRA and should dispute paying a return charge.

Unwanted but not faulty items

If an item was purchased online, a consumer has 14 days from receiving delivery to request a full refund, whatever the reason, even if it is just not liking your Christmas jumper. To exercise the right, the consumer must then return the item within a further 14 days from the date of notifying the company of their intended return.

However, there are some conditions that may need to be met, such as the consumer’s ability to return the item within the original, undamaged packaging. As such, we advise that you take care when opening any packages in case a return is required. Also, some exceptions may apply for certain items, such as underwear, which has been tried on.