1. Fee Amounts and Calculation Rules
A restocking fee is a seller's charge for accepting returned merchandise and issuing a refund or credit. New York General Business Law §218-a requires conspicuous refund-policy disclosure, including each fee's dollar amount or percentage. “Fees may apply” leaves the required amount unspecified.
Flat Charges and Percentage Deductions
State whether the deduction is a flat charge or a percentage. For percentage fees, identify the calculation base, such as the returned item's price after discounts. Explain separately whether return shipping is deducted. Avoid charging both amounts under one unexplained label.
For calculation purposes, a 20% deduction from a $100 item price leaves $80 before other adjustments. Section 218-a neither sets a general percentage cap nor automatically authorizes a 20% or 25% charge. A commonly advertised rate does not establish legality, and disclosure does not resolve separate warranty or deceptive-practice issues.
Discounts, Bundles, and Partial Returns
For bundles and partial returns, explain how discounts affect the fee base. Avoid treating the original order total as the price of one returned item. Identify how an order-level discount is allocated before calculating a percentage deduction.
Return-portal settings and staff instructions should produce the same result. Broader e-commerce regulations address payment and refund operations beyond this specific calculation.
2. Product Coverage and Holiday Exceptions
A longer return window and a waived fee are different promises. Specify whether the seasonal offer changes the time limit, the deduction, or both. The full refund policy must also address sale or “as is” goods, missing purchase evidence, time limits, refund methods, and access to a written copy on request.
Eligible Products and Fee Periods
Identify the affected products and qualifying purchase dates. Distinguish unopened goods, opened packaging, missing accessories, and special orders. Staff should be able to apply the stated rate without choosing an undisclosed amount after inspection.
If the charge starts after a fee-free period, define when that period begins and whether the holiday extension changes it. Specify whether timing depends on requesting, shipping, or delivering the return. These details determine the deduction even when the item remains returnable.
Defects, Incorrect Items, and Fee Waivers
Separate change-of-mind returns from reports of defects, shipping damage, or incorrect merchandise. A voluntary return policy does not by itself resolve warranty or nonconforming-goods rights. Review the asserted problem and applicable rights before applying the usual deduction.
State any voluntary waivers, such as unopened returns or exchanges. Distinguish those business choices from legal restrictions on charging a fee. An extended deadline or final-sale label does not answer a separate warranty claim.
Conflicting Promotions and Later Changes
Compare the fee terms with banners, emails, and product badges. “Free returns” may create a misleading impression if an unavoidable deduction appears only elsewhere. An extended-return promise should identify continuing charges without suggesting that every eligible return produces a full refund.
A live policy edit does not establish the terms of earlier purchases. Identify affected orders before applying revised charges. Advertising compliance covers the separate federal review of promotional claims and disclosures.
3. Where Should Online Sellers Display the Fee?
Section 218-a permits online notice or a hyperlink near the item itself, or notice or a hyperlink presented before requesting billing information. The disclosure must be conspicuous. Repeating it at both stages can help buyers, but the statute does not mandate both locations.
Product Notices and Pre-Billing Screens
Under §217, the online-retailer definition covers new goods sold primarily for personal, family, or household use to New York consumers. A marketplace is excluded from that definition when it is not the seller. Identify the actual seller before assigning disclosure responsibilities.
Use a clear fee summary or descriptive policy link that identifies the applicable terms. A generic footer link should not be assumed to meet the statute's location and timing requirements. Test mobile layouts and express checkout for routes that bypass the notice.
| Screen | What to Check | Record to Retain |
|---|---|---|
| Product page | Applicable fee and product exception | Dated view tied to the product |
| Pre-billing screen | Visible notice or accessible policy link | Purchase-flow capture and linked version |
| Return portal | Deduction matches the purchase terms | Itemized calculation and return reason |
Acknowledgment and Order Confirmations
A separate checkbox may document acknowledgment, but §218-a does not expressly require one. A checked box does not cure misleading wording or an undisclosed amount. Retain the policy text associated with the acknowledgment.
Include relevant terms in the order confirmation for later reference. An email sent after purchase cannot replace the required earlier disclosure. Keep the purchase-time notice and confirmation as separate records.
4. Records Supporting a Fee Deduction
Link each disputed deduction to the applicable policy, the return reason, and the calculation. A current screenshot alone may not establish what the buyer could see when ordering.
Policy Versions and Return Calculations
Retain effective dates, policy text, relevant screen captures, and order timestamps. Record the return reason, inspection findings, photographs where useful, calculation base, and any waiver. Keep factual notes that distinguish reported defects from observed wear or missing components.
Preserve customer-service promises that differ from the published terms. Recurring differences between disclosed and charged amounts may warrant broader consumer protection compliance review, including applicable federal standards, alongside the state refund-policy requirements.
Disclosure Failures and the Conditional 30-Day Remedy
Under §218-a(3), a violation can create liability for a cash refund or credit, at the buyer's option, for up to 30 days from purchase. The goods must be unused and undamaged by the buyer. The purchase date must be verifiable through a receipt or another method the retailer uses.
This remedy is conditional, rather than a general 30-day right to return merchandise. Before withholding a fee, review whether a disclosure violation changes the refund obligation. Correcting future screens does not resolve deductions from earlier orders.
09 Nov, 2026
