‘No Refund’ signs illegal

Harare Bureau

THE practice by some small retail outlets, popularly known as “runners”, and other shops of displaying “No Refund” signs has been declared illegal, with the Government warning that the practice constitutes a criminal offence that will lead to prosecution.

This development follows Cabinet’s approval of the Consumer Protection Policy (2026-2030), introduced by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, during Tuesday’s Cabinet meeting.

Prompted by a rise in restrictive trade practices within the electronics and retail sectors, the policy is designed to fortify consumer rights against the challenges of an increasingly sophisticated and evolving marketplace.

While “runners” dealing in apparel and kitchenware have frequently used these signs to block returns, some mobile phone shops have been criticised for imposing arbitrary three-day guarantees — terms the Government now says have no legal standing.

In an interview, Industry and Commerce Minister Mangaliso Ndlovu declared the “No Refund” disclaimers legally void, calling them an unlawful attempt by businesses to bypass national trade protections.

“Some people do not know that it is illegal to put a disclaimer that there is no refund,” Minister Ndlovu said. “It is illegal, and if there are people who are doing that, an informed consumer is advised to notify the authorities, it could be police, it could be ourselves as the ministry, so that we can prosecute such businesses.”

The minister noted a narrow exception to this rule, limited strictly to the health and pharmaceutical industry.

This carve-out is based on public safety and hygiene standards rather than commercial preference.

“It’s only in the health sector that it is acceptable, because you can’t take a drug and then you want to return it,” he added. “It cannot be consumed by other people.”

The new policy also serves to regulate the supply of goods and services, safeguard the rights of consumers and promote fair trading practices in the marketplace.

It will also promote the production of quality goods and services in order to meet the needs of an empowered consumer, ultimately improving the country’s domestic and international competitiveness.

“The Consumer Protection Policy closes the existing legislative and institutional gaps, strengthens co-ordination among agencies and promotes fair, transparent and accountable practices across all sectors of the economy,” reads part of the statement that was read by Minister of Information, Publicity and Broadcasting Services Dr Zhemu Soda.

Information, Publicity and Broadcasting Services Minister, Dr Zhemu Soda, addresses journalists during a post-Cabinet media briefing in Harare yesterday

“The Consumer Protection Policy is anchored on strategic pillars, namely: Institutional Architecture for Consumer Protection; Dispute Resolution and Redress Mechanism; Legal and Regulatory Framework; Product Safety and Quality of Goods and Services; Counterfeit and Illicit Trade; Consumer Education and Awareness; Regional Integration and International Co-operation; and e-Commerce and Digital Transactions.

“The pillars entail, among other objectives, strengthening Consumer Protection institutions; intensification of ongoing market compliance checks; enforcement of consumer rights and welfare through clear dispute resolution guidelines; the establishment of a dedicated Anti-Counterfeiting Framework; and the rollout of comprehensive consumer education programmes.”

Other policy actions include the review of legal instruments governing digital transactions and the strengthening of the Consignment-Based Conformity Assessment system in the country.

The policy has a robust monitoring and evaluation framework for effective consumer participation and improved business compliance.

A snap survey conducted yesterday revealed that several retailers in Harare — particularly those advertising via WhatsApp, Facebook and other social media platforms — are currently flouting consumer rights by enforcing “No Refund” policies.

“Tracksuits US$16, available in orange or blue. Strictly no refunds; we only exchange sizes for the same item if stock is available,” reads one typical advertisement circulating online, usually accompanied by a location and contact details.

Some customers also face hurdles when buying for someone not present. There is a persistent risk that by the time a buyer returns to swap an item, the original stock has been depleted.

Since these shops refuse to issue refunds, customers are often coerced into accepting unrelated goods.

“This is a welcome development,” said Ms Heather Chigombe of Budiriro, responding to calls for stricter enforcement. “At one point, I was forced to exchange a pair of jeans for sneakers because they refused to give me my money back. We hope these regulations will finally be enforced.”

The survey also highlighted predatory practices at the Gulf Complex, where electronic shops frequently offer restrictive “24-hour guarantees”.

“They are currently targeting tobacco farmers,” a shop owner who requested anonymity said. “They sell cellphones with a 24-hour guarantee, knowing full well that by the time a farmer gets back to Karoi and discovers a fault, the guarantee will have already lapsed.”

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