TRADERS must not use 'No Refund' signs in shops.
The Department of Fair Trading and Consumer Affairs says all goods sold should be of fit for sale to the consumer and match the sample shown to the customer. It said "No Refund" signs implied that goods were not fit for purchase.
A statement from the department said consumers were entitled to a refund if goods fail to match up to the above requirements.
A department survey in Nausori found 13 shops displaying the no refund sign.
The Ministry of Trade and Commerce said the display of signs or policies that implied no right of refund was unlawful since it breached Section 56 (1) (k) 'False or Misleading Representation' of the Fair Trading Decree 1992.
"Customers are entitled to have the purchase price of goods refunded if they are faulty, unsuitable or do not correspond with samples given to them," the ministry said.
Instead, traders were to use signs such as, "Choose carefully because we do not refund if you change your mind" or "if goods are faulty we will meet our obligations under the Fair Trading Decree 1992".
The ministry urged shops to remove such signs or face a $25,000 penalty.