By Vanessa Pratley
Investigative Journalist | Kaipūrongo Whakatewhatewha
We were recently asked if a store was allowed to charge customers a return fee.
The store, Muse Boutique, accepts change of mind returns of any full-price pieces bought online if you return it within 7 days. However, if you want a refund, you’ll have to pay for shipping costs, plus a handling and processing fee of $60.
Muse boutique isn’t alone in its return fee rules: depending on the circumstances, PB Tech charges a 20% fee, Target Furniture charges 15%, and Fishpond charges 17% with a $5 minimum.
So, is it allowed?
Can stores charge me a return or restocking fee?
Whether a store can charge a return fee will depend on why you’re returning the product.
I’ve changed my mind
If you’re returning the product under a change of mind policy, a store can charge you a return fee if they're upfront about it.
If you only find out about the fee because it's deducted from your bank account, we think this is unfair and grounds to ask your bank for a chargeback or file a complaint with the Commerce Commission.
The product is faulty
If you’re returning the product because it’s not fit for purpose, doesn’t match the description, or it's faulty, a store can’t charge you a return fee. That’s because you’re covered by the Consumer Guarantees Act (CGA).
Under the CGA, the retailer can choose whether to give you a refund, replacement or repair the product at its cost – not yours. If the fault is substantial or can’t be fixed, you can reject the product and receive a full refund.
If a retailer tries to make you pay a return fee in these circumstances, they risk breaching the Fair Trading Act.
Do I have to pay delivery fees to return something I bought online?
If you’re returning something because you’ve changed your mind, whether the cost of returning the item falls on you will depend on what the store’s returns policy says.
However, if you’re returning something because it doesn't meet your consumer guarantees, the retailer must cover shipping costs.
How much can a store charge me to return items?
A retailer can charge what they like for products, but when it comes to return fees, we think these should be reasonable. If they’re not, they risk breaching the FTA prohibition on unfair contract terms. What’s reasonable will depend on the circumstances.
When stores can’t charge return fees
A store can’t charge you a return fee if:
the retailer isn’t upfront or misleads you about the fee
the product is faulty or not as described
the fee is unreasonable or excessive.
In other countries, charging return fees is illegal. For example, in the United Kingdom, consumer laws allow you to return products you bought online in the first 14 days after you’ve received them – even if you’ve just changed your mind. Retailers also can’t charge you shipping or restocking fees, unless the item has been used or damaged. There are some exceptions, such as for custom-made products or underwear.
Why it’s important to check return policies before you buy
We often hear from people who have been caught out by not checking the return policies before they hit purchase.
Here are some things to look for in return policies:
if a store accepts returns on sale items
how long you have to return items
if you have to pay to send an item back, and where the store is based – you could end up paying a lot to return an item overseas
if you’ll be refunded for your return or only given store credit.
We’ve also found countless stores whose online returns policies risk misleading you about your consumer rights.
We investigated this issue in 2025, and awarded Barkers a Yeah, Nah award for its policy. The retailer changed their policy following our investigation, alongside several others we investigated.
