What is Penalty for not having a proper refund policy for D2C brands?
Nexa Consultancy | Startup & Finance Glossary
Under the Consumer Protection (E-Commerce) Rules, all e-commerce entities must have a clear and accessible refund, return, and exchange policy. Not having one, or not adhering to the stated policy, can lead to consumer complaints and penalties from consumer courts.
Startup Example: A D2C brand has a vague refund policy. A customer files a complaint for a refused refund, leading to a consumer court case and negative publicity.
Our legal advisory helps draft compliant e-commerce policies.