What are the legal obligations of an e-commerce business in terms of returns and refunds?

In North Dakota, e-commerce businesses have specific legal obligations when it comes to returns and refunds. The North Dakota Century Code requires that merchants must provide a “clear and conspicuous” disclosure of their return/refund policy, and that they must honor the policy unless it is modified or revoked. According to North Dakota’s Electronic Commerce Return and Refund Act, merchants must allow customers to return items purchased online within at least 14 days of purchase, unless the merchant specifies a different timeframe. Merchants also must give customers a full refund for the purchase price; however, if an item was purchased for an amount that was discounted or on sale, the refund must be limited to the amount of the discounted price or sale price. Merchants must also provide customers with a prompt refund for returned items. If the customer paid by credit card, the refund must be credited to the card within seven days of the return. If the customer paid with cash, the merchant must issue the refund within 10 days of the return. Additionally, merchants must refund any shipping and handling charges when a customer returns an item that was purchased with free shipping, or if the customer returns an item that was damaged or defective. The merchant must also include a pre-paid shipping label when they send out a replacement item for a damaged or defective product. Failure to comply with these laws can result in fines and other penalties.

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What are the legal obligations of an e-commerce business in terms of returns and refunds?

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