Returns cost fashion brands real money, and three legal systems govern how they handle them. The National Retail Federation and Happy Returns project that US returns will reach $849.9 billion in 2025, or 15.8 percent of sales, with 19.3 percent of online sales coming back. Shoppers expect generosity, since 82 percent say free returns matter when they buy online. The law does not demand that generosity, and what it does demand differs sharply between the United States, the European Union and the United Kingdom.
United States: No Federal Right to Return, but Disclosure Rules Apply
No federal law requires a merchant to refund a purchase on a change of mind, so a US brand can sell final-sale items. State law then governs how the brand discloses its policy. In California, merchants must post their refund policy unless they offer a full cash refund, an exchange or store credit within seven days of purchase, and a shopper whose merchant posts nothing can return goods for a full refund within 30 days. New York’s General Business Law section 218-a sets the same 30-day default when no policy is posted, and Florida’s default is seven days.
Federal law protects delivery. The FTC’s Mail, Internet, or Telephone Order Merchandise Rule, found at 16 CFR Part 435, requires sellers to ship within the time they promise, or within 30 days when they promise none. A seller that cannot meet the date must offer the buyer the choice to wait or take a refund.
The statutes speak of signs at cash registers and entrances, so online sellers should read them conservatively. One compliance guide advises displaying the policy conspicuously and before the customer completes the purchase, and following the policy in practice exactly as written.
European Union: A 14-Day Right and a New Withdrawal Function
The EU gives online shoppers a statutory right the US lacks. Under the Consumer Rights Directive, consumers have 14 days to withdraw from a distance contract without giving any reason. The trader must refund the payment, including standard delivery costs, within 14 days of learning of the decision, and it may wait until the goods are back or the customer shows proof of return. The consumer bears the direct cost of sending goods back when the trader has told them so beforehand. A brand that fails to give the required information about the right extends the withdrawal period by up to 12 months and 14 days.
A new rule changed the mechanics on 19 June 2026. Directive (EU) 2023/2673 inserted Article 11a into the Consumer Rights Directive, and it requires traders who conclude contracts through an online interface to offer a withdrawal function. The function must carry the label “withdraw from contract here” or an equally unambiguous equivalent. It lets the consumer submit a statement naming themselves and the contract, and a separate “confirm withdrawal” step follows. Freshfields notes that a clearly labelled link satisfies the rule, since neither the directive nor German law demands an HTML button. The button does not extend the 14-day period. Practitioners expect it to make withdrawal faster for customers and more frequent for brands.
United Kingdom: The Same 14 Days, Different Detail
The UK’s Consumer Contracts Regulations 2013 implement the same directive, and a shopper can cancel an online order within 14 days of receiving the goods. The consumer must send the goods back without undue delay and no later than 14 days after telling the trader. Regulation 34 sets the refund deadline at 14 days. The period runs from the day the trader receives the goods back or evidence of their return when it has not offered to collect them, and from the day it learns of the cancellation in other cases.
Regulation 35 puts the return cost on the consumer unless the trader agreed to bear it or failed to tell the consumer about the charge in the required pre-contract information. In that second case, the contract is treated as including a term that the trader pays. The regulations also protect fashion brands from abuse. A trader may deduct from the refund any loss in value caused by handling the goods beyond what is necessary to establish their nature, characteristics and functioning, and handling goes beyond that point when it exceeds what a shop would reasonably allow. Trying a jacket on as a shop would allow does not justify a deduction, while wearing it to an event can.
What Brands Should Do
A brand selling in all three markets needs one policy page with three layers. For US customers, state the policy conspicuously before checkout and apply it as written. For EU and UK customers, provide the statutory information on the right to cancel, the model withdrawal form and a clear statement of who pays return shipping before the order is placed. In the UK, silence about return costs shifts them to the brand.
EU brands also need the withdrawal function in the account or order-status area, available throughout the withdrawal period. Return fees remain lawful, and nearly three-quarters of retailers charge for at least some returns. The cost shows up elsewhere: among retailers that began charging, 47 percent reported more customer complaints and 37 percent lost customers. Brands should record each policy change and the date it took effect, because FLJ’s guide to compliance in fashion startups shows how quickly missing paperwork becomes a liability as a brand scales.
One Garment, Three Rulebooks
The US asks brands to say what their policy is. The EU and the UK tell brands what the policy must contain. A brand that writes its policy to the EU and UK standard gives US shoppers a clear policy too, and it should still check state posting rules and shipping promises for US orders.
This article gives general information about online returns law in the United States, the European Union and the United Kingdom and should not be taken as legal advice. Rules differ by country and state and change over time, so check the current requirements for each market you sell in. For advice on your own policies and terms, consult a qualified lawyer.
FASHION LAW JOURNAL INSIDER
Join designers, brand founders and fashion lawyers who get the biggest brand battles, IP fights and career moves in fashion law, straight to their inbox.
