Consumer Protection - Retail Sales - Return and Exchange Policy (Right to Refund Information Act)
Impact
If enacted, SB24 will amend the Maryland Commercial Law by introducing specific guidelines that promote transparency in retail transactions, aiming to reduce deceptive trade practices. Violations of these new provisions would classify as unfair, deceptive, or abusive trade practices subject to enforcement under the Maryland Consumer Protection Act. This change emphasizes the merchants' responsibility to provide clear information, thereby fostering consumer trust and supporting informed purchasing decisions.
Summary
Senate Bill 24, known as the Right to Refund Information Act, seeks to enhance consumer protection in retail sales by mandating that merchants inform consumers about their refund and exchange policies before the completion of sales transactions. Specifically, the bill requires merchants to conspicuously display their policies regarding refunds and exchanges, or state if they do not offer any, either on the product itself or at the point of sale. For online sales, this requirement translates to placing the policy on a webpage the consumer must view before completing their transaction.
Contention
Discussions may arise concerning the implications of enforcing such requirements on small businesses, which could face challenges in adapting to these regulations. Critics might argue that the burden of compliance could disproportionately affect smaller retailers that lack the resources to implement the necessary changes compared to larger corporations. Proponents, however, assert that such regulations are necessary to protect consumers and ensure fairness in retail practices, arguing it levels the playing field for all merchants.