Returns under CPA section 20: what a shop may charge
When a South African customer may return goods for a full refund under section 20 of the CPA, and what a shop may deduct for opened or used items.
By Achekam · · 5 min read · For Retail businesses in South Africa
A customer comes back to an outdoor shop with a tent. She explained when she bought it that she needed something for a family of five, and the salesperson recommended this one. At the campsite it was obviously too small. The tent has been unpacked and pitched once. She wants her money back, and the manager is wondering whether he has to give it, and whether he can keep something for the fact that it has been used.
Section 20 of the Consumer Protection Act answers both questions, and it is more specific than its reputation suggests. This article sets out when the section 20 return right applies, the time limits, the goods it excludes, and what a shop may and may not charge, with a note on recording each refund properly.
Four situations where goods can come back for a full refund
Section 20(2) of the Act, as published on Acts Online, lets a consumer return goods for a full refund in four situations:
- Goods delivered under a direct-marketing agreement that the consumer rescinded during the cooling-off period.
- Goods the consumer could not examine before delivery and then rejected.
- Part of a mixed delivery that the consumer refused.
- Goods bought for a purpose the consumer communicated to the supplier, which proved unsuitable for that purpose within 10 business days after delivery.
The fourth is the one most shops meet at the counter, and the tent is a textbook example. The customer told the shop what she needed, the shop recommended the product, and it did not do the job.
Section 20(1) adds that this right is in addition to the right to return unsafe or defective goods under section 56, and to any other legal right to return goods and receive a refund. A faulty product is a separate question; section 20 is about goods that are fine in themselves but wrong for the customer in one of these four ways.
Ten business days, and who pays to send goods back
Section 20(4) requires returnable goods to come back within 10 business days after delivery. For direct-marketing cooling-off returns, the return is at the consumer's risk and expense. In the other cases, it is at the supplier's risk and expense.
For a shop, that means:
- count business days from delivery, not from the date of the sale if the goods were delivered later;
- for goods the customer could not examine before delivery and then rejects, expect to arrange and pay for collection;
- write down the delivery date on the order, so there is no argument about the window.
Goods that cannot be returned under section 20
Section 20(3) excludes the return right where a public regulation prohibits returning the goods, for public health or other reasons, or where the goods have been disassembled, physically altered, permanently installed or combined with other goods.
Typical examples in a shop: a tap that has been plumbed in, a car part that has been fitted, curtains that have been shortened, or goods that health rules say cannot be resold once they leave the shop. Explain this at the time of sale for products where it is likely to arise.
What the shop may charge, and when it may not
Section 20(6) sets clear rules on deductions:
| Condition of the returned goods | What the shop may charge |
|---|---|
| In the original unopened packaging | Nothing |
| In original condition and repackaged in the original packaging | A reasonable amount for use, or for consumption or depletion |
| Any other case | A reasonable amount for use or depletion, and for necessary restoration to make the goods fit for re-stocking |
There is an important exception in the last row: the restoration and use charge does not apply where the consumer had to destroy the packaging to check the goods.
Back to the tent. It was unpacked and pitched once, and the customer has rolled it back into its bag. The shop may charge a reasonable amount for that use, and for anything needed to make it fit to sell again, such as cleaning. It may not charge a "restocking fee" as a matter of policy on goods that come back unopened. Keep any charge modest and explain it in writing. Acts Online's text of section 20 of the Consumer Protection Act sets out the return right, the 10-business-day limits and what a supplier may charge.
Recording the refund properly
Every return is a small dispute that might grow. Recording it clearly protects the shop. In Achekam:
Till sales. A supervisor or manager can refund all or part of a till sale with a reason, as its own document linked to the sale, with the goods put back into stock. Where the shop keeps a reasonable charge for use, refund the remainder and say so in the reason: "Section 20, unsuitable for stated purpose; charge for one use and cleaning." The document links the return to the original sale, so the history is clear.
Store credit. A till refund can be given as store credit, issued as a voucher. Section 20 speaks of a full refund, so offer store credit only where the customer prefers it, and note that choice. How vouchers are held and redeemed is covered in gift cards and vouchers.
Invoiced sales. For goods sold on an invoice, such as an online order or a business customer's account, a credit note is issued from the invoice it corrects, in full or for chosen lines. It is posted to the ledger and can be downloaded as a PDF or e-mailed, with any leftover credit held for the customer. There is no credit note without an invoice, so the refund always traces back to the sale.
The wider question of when to refund, void or give credit is covered in refunds, voids and store credit.
Rewrite your returns notice this week so it reflects section 20: the four situations, the 10 business days, the goods that are excluded, and the fact that unopened goods come back without any charge.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
