The growing use of no-refund and no-return policies by vendors and service providers has come under renewed legal scrutiny, particularly against the backdrop of Nigeria’s expanding e-commerce sector. While businesses adopt such policies to safeguard goods, services, and revenue, legal experts warn that blanket exclusions may conflict with statutory consumer protections.
In a recent legal analysis, Oyetola Muyiwa Atoyebi, SAN, examined the legality of no-refund/no-return policies under Nigerian law, with specific reference to the Federal Competition and Consumer Protection Act (FCCPA) 2018, relevant judicial authorities, and the Sale of Goods Act.
According to the analysis, businesses are entitled to protect their commercial interests and mitigate risks such as fraudulent returns. However, these interests must be balanced against consumers’ rights, especially where goods or services are purchased without prior physical inspection—a reality that has become common with the rise of online transactions.
The article explains that while the principle of pacta sunt servanda (agreements must be kept) remains relevant, contractual terms cannot override statutory protections guaranteed to consumers under Nigerian law. Where goods are defective, unsafe, or not as described, a rigid no-refund policy may be unenforceable and contrary to the FCCPA 2018.
The analysis concludes that businesses must carefully structure refund and return policies to ensure compliance with consumer protection laws, noting that transparency, fairness, and accountability are essential to maintaining trust in commercial transactions. Ultimately, consumer protection and business sustainability are not mutually exclusive but must coexist within the framework of the law.
Further details are available via Omaplex Law Firm’s publication.
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