Refunds and exchanges in Luxembourg: What are your legal rights

Imagine the situation: You bought an item in a store in Luxembourg, went home and changed your mind, so the next day you went back to the store to return the item and get a refund. But, surprise – the retailer informs you that the store does not offer refunds or exchanges, and this information is actually written on your receipt.

You think it is unfair, as many retailers in Luxembourg accept returns and offer refunds. To find out who is right in this case and what the legal provisions are regarding the right of withdrawal, RTL Today spoke to Navid Poushanchi, legal advisor at the Union Luxembourgeoise des Consommateurs (ULC).

ULC is a non-profit organisation whose aim is to protect, defend, inform, and educate Luxembourgish consumers. ULC also represents consumers to public and political authorities. It helps protect consumers in areas such as travel, building contracts, lease contracts, insurance, and other various purchases.

Right of withdrawal for online purchases

There is a 14-day right of withdrawal that applies to all distance contracts, including online purchases, within the European Union under Article L.222-9 of the Luxembourg Consumer Code, which implements a European Directive on consumer protection rights. This right applies regardless of whether the business operates a physical store in Luxembourg and does not accept returns for in-store purchases.

The decisive factor is the absence of the simultaneous physical presence of both the professional and the consumer when the contract is concluded. This is typically the case for online sales.

There are exceptions to the right of withdrawal under Article L.222-9, paragraph 7 of the same Code, notably for perishable goods, digital content that has already been consumed (such as downloaded video games), etc. These exclusions are considered by the Code as situations where the consumer is deemed to have expressly waived their rights.

Right of withdrawal for in-store purchases

For in-store purchases, there is no general legal right of return, exchange, or store credit. These options are entirely based on the retailer's commercial policy and do not stem from Luxembourg or EU law. It falls entirely within the scope of contract law.

Therefore, if a professional allows returns or exchanges for items purchased in-store, this is a voluntary gesture made at their discretion, not a legal obligation.

No legal obligation to display return or exchange policies

Since there is no legal obligation to offer returns or exchanges for in-store purchases, there is likewise no legal requirement to display such policies. However, in practice, many businesses choose to inform customers of their return conditions (whether by signage, receipts, or verbally) as part of their commercial strategy to build trust and attract customers.

Of course, if a retailer advertises or promises a return policy, this would then fall under the scope of contractual obligations. Depending on the circumstances, misleading trading practices could potentially be relevant if there is a discrepancy between what is advertised and what is practised.

Is a retailer within their rights to decline an exchange for in-store purchases? A retailer is legally allowed to refuse returns or even exchanges for in-store purchases unless a specific return or exchange policy has been formally included in the terms and conditions of sale, the receipt, or another contractual document. If such a policy is explicitly stated, the retailer is then bound by it and must honour its terms.

The guarantee period

The legal guarantee of conformity, as established by Articles L.212-1 to L.212-11 of the Luxembourg Consumer Code applies to all consumer goods and lasts for two years from the date of delivery.

If a defect arises within this period, the consumer is entitled to request, free of charge, the repair or replacement of the product. However, the professional may refuse replacement if it would entail disproportionate costs compared to repair.

This right is subject to the condition that the defect is not the result of misuse or external damage caused by the consumer. During the first year of the legal guarantee, the burden of proof lies with the seller, as the law presumes that the defect existed at the time of delivery, unless proven otherwise.

Consumer assistance in European consumer law

For the resolution of cross-border consumer disputes, residents of Luxembourg can seek free-of-charge advice from the European Consumer Centre Luxembourg (ECC Luxembourg). As part of a network of 29 European Consumer Centres across the European Union, as well as in Iceland and Norway (the ECC-Net), ECC Luxembourg provides guidance and support to consumers facing issues in cross-border transactions.

The centre is financially supported by the European Commission, the Government of Luxembourg, and the Union Luxembourgeoise des Consommateurs (ULC).