UK Retailers Breaking Law on Refunds, Which? Investigation Finds 2026

A recent investigation by consumer champion Which? has found that leading UK retailers are breaking the law by failing to properly refund customers for returned goods. The study, which sent mystery shoppers to test the returns processes of 17 major online retailers, uncovered widespread failures in refunding both delivery costs and the cost of goods themselves.

Which? Investigation Exposes Refund Failures

In June and July, Which? sent 12 mystery shoppers across Great Britain to purchase over 200 items from 17 of the UK's biggest online shops. The shoppers then returned their purchases by post—the most common method—and meticulously tracked the entire process, from the cost of returning an item to whether they received the correct refund.

The results were alarming: many retailers routinely failed to reimburse delivery costs when customers returned unwanted purchases, while others failed to refund the cost of the goods themselves. This is a clear breach of consumer law, which states that customers are entitled to a full refund including standard delivery costs when they cancel an order within 14 days.

John Lewis Leads the Way, Matalan Falls Behind

John Lewis came out on top, with shoppers praising the retailer for keeping them informed at every stage of the returns process. Its strong performance has seen it become the first retailer to receive Which?'s new recommended provider for returns status.

At the other end of the table was clothing and homeware retail chain Matalan, which failed to refund customers properly in a series of cases. Matalan does not offer free returns, and refunded the cost of the returned product to just seven of Which?'s 12 mystery shoppers. None received a refund for their original delivery fee. In one case, a shopper returned an item costing £3.99. They had initially paid £3 for delivery and a further £2.99 to return it—meaning they were left significantly out of pocket.

Retailer Refund Performance Comparison

What the Law Says About Refunds

Under the Consumer Contracts Regulations 2013, online shoppers have the right to cancel an order within 14 days of receiving it and receive a full refund, including standard delivery costs. Retailers must refund the money within 14 days of receiving the returned goods or evidence of return. Failure to do so is a breach of the law.

Which? found that many retailers are flouting these rules, leaving customers out of pocket. The consumer champion is calling on retailers to improve their returns processes and comply with the law.

Key Takeaways for Consumers

• You are entitled to a full refund including standard delivery costs when you return an item within 14 days.
• Retailers must refund you within 14 days of receiving the returned goods.
• Some retailers, like Matalan, may not refund delivery costs or may fail to refund the product cost.
• John Lewis has been recognized for its excellent returns process.
• If a retailer fails to refund you properly, you can report them to Trading Standards.

How to Ensure You Get Your Refund

To protect yourself, always check the retailer's returns policy before buying. Keep proof of return, such as a receipt or tracking number. If you don't receive your refund within 14 days, contact the retailer immediately. If they still fail to comply, you can escalate the matter to your bank (for card payments) or report them to Trading Standards.

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