Exclusive investigation: shops charging illegal ‘restocking fees’ for returns

These costly fees can’t legally be charged to ordinary customers, but some retailers are trying their luck

Online retailers are charging illegal ‘restocking fees’ to customers who return high-value items, such as wedding dresses, furniture and interior design. 

Not only should these fees not be charged, but they can be incredibly high, as much as 25% of the price of the items or hundreds of pounds.

But what are restocking fees and is there ever a case when companies are allowed to apply them? Plus, I’ll explain how to fight back when companies try to make you pay and how we forced one company to change its policy.

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What are restocking fees?

If you come across restocking fees, they’re usually charged by online retailers when customers return an item.

The charge is designed to cover the cost of processing the returned items, including inspecting them, repackaging them and replacing them with extra stock. Clothing companies typically reference the ‘buy many, keep one’ method of online shopping as a reason for the charges.

For example, if you’re buying a dress or shirt for a special event, you might order several different options or sizes and return all but one. The retailer theoretically needs to have extras of each item in stock to sell to other customers, which costs them money and will take up space. 

We’ve seen restocking fees charged in different ways. They’re sometimes a set amount per item returned, for example, bridal shop Six Stories, charges a £2 fee per item returned. They can also be a percentage of the returned amount, sometimes up to 25%. These fees are taken from your returns refund.

When are restocking fees charged?

Restocking fees are more commonly charged by businesses who sell to other businesses, such as or wholesalers, which is legal. 

However,  we’ve discovered a number of retailers applying this fee to ordinary shoppers who want to return items they’ve bought online. Which definitely isn’t allowed. 

Companies that charge restocking fees

Since we started investigating this issue, we’ve seen several companies remove their restocking fees, including bridal and occasionwear companies JJ’s House, Azazie and Missacc.

Some other companies we’ve come across that charge restocking fees in the UK include:

• Ever Pretty, a bridal wear company, charges a 5% restocking fee when returning three or four items, 10% when returning five to 10 items and 15% when returning more than 10 items, credited as a gift card
• Lace & Button, a wedding dress retailer, charges a £350 restocking fee for returns which can be redeemed against another dress or returned to you once the dress is resold. 
• Six Stories, a bridal wear company, charges a £2 fee per item
• Hidden Botanics, a dried flowers company, charges a 30% restocking fee if you don’t choose store credit
• Lightzey, a lighting company, charges a 10% restocking fee if you change your mind on a purchase
• Cicinia, a bridesmaid dress company, charges a 10% restocking fee if you change your mind
• Plank Hardware, an interior design company, charges a £5 restocking fee if you change your mind
• Lavetir, a clothing retailer, charges a restocking fee between 20% and 50% depending on your reason for return

We contacted all the companies to ask why they charged restocking fees when they were illegal, but the majority did not respond to our requests.

The only company to explain was Cicinia. A spokesman said: “Because our warehouse is remote, the round-trip cost is higher. And many buyers will try on multiple items in a single order (as an example, we’ve seen up to eight) and as we mention on our website, all fees are written into the policy, we don’t charge extra. And the goods are made after the order is received, rather than a one-time production of a large number of clothes to sell. So we reduce the likelihood of that happening by charging a fee.” 

Cicinia added that it was also actively looking for a better warehouse in order to better solve this problem in the future.

Are restocking fees legal?

For the most part, restocking fees aren’t legal. This is because of the 14-day cooling off period from the day of delivery that applies to the return of goods bought online, which I’ll explain more about below.

According to Trading Standards, there are instances where they may be allowed, typically where the cooling-off period doesn’t apply, but only if the terms and conditions of the website state the fee clearly. This includes:

• Where the order is a custom order – such as made to measure or personalised items
• If the order is a business-to-business (B2B) order or made on a B2B website
• When the items are significantly reduced in value from mishandling by the buyer, such as if you damage the item before it is returned or break a hygiene seal

We asked Trading Standards whether shops were allowed to charge restocking fees and they told us:  

“If a customer is charged a re-stocking fee when buying an unused item online, this would likely amount to a breach of Trading Standards legislation. 

“Under this law (The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013) a customer has a right to a fourteen day cooling off right and is entitled to return the goods for any reason. This refund should include standard postage costs and be made within fourteen days.”

So in short, no re-stocking fee should be charged when returning unused goods.

Customers can return items for a full refund

Under the Consumer Contracts Regulations, you have a ‘cooling off period’ of 14-days where you can  decide whether you want to keep it. It applies when you haven’t seen an item in person, such as when bought online, except where it’s made to measure or bespoke. If you don’t want the item, you can return it within this period, without question. 

In addition, if you paid for standard delivery, this needs to be refunded to you, although you’re responsible for the cost to return the item or the retailer might charge you a small returns fee to cover that cost. If you paid for premium delivery, you’ll only be refunded the standard delivery cost. 

However, some items are exempt from the 14-day returns rule, including: 

• Items that deteriorate quickly – like fresh flowers or food
• Personalised or custom-made items
• Anything sold by a private individual, such as from a social media marketplace or online auction site
• CDs, DVDs or software, if you’ve broken the seal
• Items with a broken hygiene seal, like earrings or swimming costumes

What to do if a company tries to charge a restocking fee

While it’s illegal for a website to try and charge a restocking fee, it’s not a good idea to buy from a company that includes it in its terms and conditions. It’s generally easiest to avoid websites that will try and charge them to avoid having to try and recoup your money.

However, if you do want to buy something from a website that has restocking fees in the returns policy or you’re attempting to return an item and an online store is trying to charge you, here’s what you can do.

1. Check the returns policy. If possible, do this before making an order. You’ll be able to get an idea of how easy your return will be before anything’s even arrived. 
2. Notify the seller that you’d like to make the return within 14 days of receiving the item. You can quote the 14-day cooling off period and let them know you’ve changed your mind about the item. They can require you to pay for the postage to return the item. 
3. If the seller doesn’t agree to waive the restocking fee, contact the Citizens Advice consumer helpline on 0808 223 1133. They’ll be able to notify Trading Standards. Then, notify the business that you’ve contacted Trading Standards. 

Have you come across a retailer charging restocking fees or have you been charged them yourself? Let us know at [email protected].